PESTLE Analysis and Porter's Five Forces Model for Nike

This study case analyzes the PESTLE factors that impact Nike's operations and the Porter's Five Forces model for Nike's competitiveness. The PESTLE analysis includes political, economic, social, technological, legal, and environmental factors. The Porter's Five Forces model analyzes the competitive rivalry, bargaining power of suppliers and buyers, threat of new entrants, and threat of substitutes. The study case also includes references to relevant books and journals.

Study case Nike

Table of Contents
MAIN BODY ......................................................................................................................................3
Presenting the PESTLE analysis ....................................................................................................3
Analysing the porter five forces model for nike.............................................................................4
REFERENCES.....................................................................................................................................5

MAIN BODY
Presenting the PESTLE analysis
It is framework that helps the company in idnetiffying certain external factors that impact
the operations of the business in long run. Further, such external factors can be controoled by the
company through properly developing the raeserch and tools that will moniter and keep close
check on functioning of the bsuiness.
Factors Impact
Political Favourable government policy and political
stability will have positive impact on firm. Also,
limited trade restrictions will craete best
results.
Economical Factors such as inflations rate, import export
restrictions etc might crreate both poistive and
negative impact on operations of the bsuiness .
Social Developing social campaigns will attract the
young genration and thus would create positive
impact. Also , manufacturing enviornmnetal
frinedly products would also create positive
imapct.(Anderson, Hughes and Nguyen, 2019)
Technological Installing new technologies at the workplace
would help in effecient working thus craeting
the positive impact on the sales of business.
Also , it would help in having effecient
maufacturing process.
Legal Not following the governmnet rules and policies
might craete negative impact on the bsuiness.
For example: Case of False discounts offered
to public by nike. Also, tax evasion is another
issue faced by the company.(Amankwah-
Amoah, Khan and Wood, 2021)
Environmental Creating both air and water pollution by the

company is neagtive factor for the sucecss of the
business. However, conducting the
enviornment awareness campaigns would help
the firm in increasing the sales fo the business.
Analysing the porter five forces model for nike.
It is model that is based on certain factors that if closely anlaysed would help in delivering
high quality products that are superior in quality and desgins. The detailed anlsysis of such factors
is been presneted as follows:
Competitive rivalry: It is known that various competitors have enetred into UK market that are
delivering high qaulity products at very low cost and thus giving tough comeptition. Also, most of
the brands are interested in investing heavily on marketing activities so that maximum sales could
be generated (Skripak and et.al., 2018).
Bargaining power of suppliers: It is low for the quoted firm as suppliers are ready to supply
goods of international brand in differnet markets. Also there are various suppliers of raw materials
to nike that also reduec the overall product costs of the firm.
Bargaining power of buyers: It is at moderate level as it is famous sport company which means
that customers have little options to buy from the rest competitors. Moreover, the company
dominent position in the market is additional advanatge in terms of attracting and retaining
customers (Bejtkovský, Rózsa and Mulyaningsih, 2018)
Threat of new entrants: It is very high beacuse the indstry does not have any restrictions for the
small and local manufacturers to sell the sports goods in the UK market. Also, this threat would
allow the firm to develop new innovative products the market so that maximum revenues could be
generated.
Threat of substitutes : The industry is always has the threat of new substitutes that are taking up
the market. Also, for this purpose the company need to continuously innovate the products' so that it
can stay ahead in competition for longer time (Islami, Mustafa and Latkovikj, 2020).

REFERENCES
Books and journals.
Amankwah-Amoah, J., Khan, Z. and Wood, G., 2021. COVID-19 and business failures: The
paradoxes of experience, scale, and scope for theory and practice. European Management
Journal. 39(2). pp.179-184.
Anderson, J. E., Hughes, M. Ü. and Nguyen, C., 2019. The highs and lows of startups in the
Cannabis industry: A PESTLE analysis of the current issues. In Business Forum (Vol. 27, No.
2, p. 26).
Bejtkovský, J., Rózsa, Z. and Mulyaningsih, H. D., 2018. A phenomenon of digitalization and E-
recruitment in business environment. Polish Journal of Management Studies. 18.
Islami, X., Mustafa, N. and Latkovikj, M. T., 2020. Linking Porter’s generic strategies to firm
performance. Future Business Journal. 6(1). pp.1-15.
Skripak, S. J. and et.al., 2018. Business in a Global Environment. Fundamentals of Business.