Nike Company Analysis - Report

RUNNING HEAD: NIKE BUSINESS ANALYSIS
Nike Company Analysis
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Author Note:

1NIKE BUSINESS ANALYSIS
Introduction:
Nike Inc is one of the most globally reputed supplier and manufacturer of sportswear and
equipments. A United State based company, Nike was founded in 1964 and the headquarter is at
Beaverton, Oregon. Nike is arguably the leading supplier of athletic shoes and apparels and the
world’s leading manufacturer of the sports equipments (Kreng and Wang 2013).
It was initially at the time of formation named as the Blue Ribbon Sports and officially
came to be known as Nike since 30th May 1970. The nomenclature of the company has been
done after the name of the Greek goddess of Victory, Nike. According to the Analysis of Forbes,
the brand value of the company is about 15.9 billion dollar until 2017 (Godwin, Kalapana and
Valli 2013). The brand is known widely by its Swoosh or the Nile tick logo and the famous
tagline “Just Do It”. The swoosh logo is considered to be the most reputable athletic sponsors of
the world.
On the rankings published by Fortune 500, the company ranks a position of 89. However,
though the company has emerged itself as the largest supplier in sports equipments, it has a
competitive market. With other established brands like Adidas, Puma, Reebok and other personal
brands possessed by the celebrities, Nike has to face a tough competition (SANUSI 2013). . The
company must focus more on the analysis of the external environment closely.
The report thus aims to conduct a PESTEL analysis of the company and understand
whether the political, economic, social, technological, environmental and legal factors are
suitable or unsuitable for the sustenance of the company. the report will further analyse the
possible factors that can demand changes in the organisation and operations of the company in

2NIKE BUSINESS ANALYSIS
order to sustain. It will also analyse the preparedness level of the organisation to tackle the
changes.
PESTEL ANALYSIS:
POLITICAL
1. Changing international
laws
2. Political unrest in Asian
countries
3. Favourable US
government policies
SOCIETAL
1. Brand consciousness of
the consumers
2. The rise in female
consumer
3. Conditions of the
factories
Change
Environment
Vision
Strategy
Benefits
ECONOMIC
1. Economic recession
2. Revenue Generation
3. Acquisition and
Subsidiaries
TECHNOLOGICAL
1. Technological
innovations’
2. Not much active in
promotion through social
media.

3NIKE BUSINESS ANALYSIS
Political Factors:
Favourable Policies of the US Government:
The policies taken by the government immensely impacts the business especially those who have
a global expansion. The US government has always put its focus on developing the growth
oriented policies for the companies which helped them to grow internationally. The stable
governments, the regulations pertaining to the trades and the competitive tax arrangements of the
international trade by the Federal Reserve helps any company to grow effectively. since Nike is
recognised as one of the most environment friendly organisation, it receives a handsome amount
of benefits in the taxations (Ayoub 2015.).
Political Unrest in some of the Asian Countries:
The maximum number of the factories of Nike has been established in some of the emerging
economic countries of Asia that are developing at present. The main areas of Asia where the
factories has been set up are Vietnam, Thailand and Indonesia. The political unrest that are
emerging in Thailand since the last few years had been a major area of concern in for the
organisation of Nike. More than 35 companies are facing a huge uncertainty in the land of
Thailand (SANUSI 2013). The situation in Vietnam is equally gloomy. The protests, political
turmoils and the corruption of government in some of the areas of Indonesia and Vietnam have
disturbed the supply chain process of the Nike Inc.
Changes in the International Laws:
There has been a considerable amount of changes in the international laws due to the
rising threat of terrorism all over the world. Various countries have sought for the imposition of
new rules and policies as precautionary measures in order to counter the growing threats of the