SWOT and PEST Analysis of Nike Inc.

This essay outlines the SWOT and PEST analysis of Nike Inc., including its strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, and technological factors on the company.

Portfolio
Table of Contents

INTRODUCTION...........................................................................................................................3
Swot analysis...............................................................................................................................3
PEST analysis..............................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Nike Inc. belongs to the industry of accessories, apparel, sports equipment. It was
founded in year 1964 by Phil Knight (PANDEY, 2017). It offers the products across the world.
The Essay will outline SWOT and PEST analysis of Nike Inc.
Swot analysis.
It is a tool used by firms to identify internal strengths and weaknesses, external
threats and opportunities.
Strengths-
 One of the major strength is strong brand awareness. The company has captured
approximately 31 % of the athletic footwear market globally.
 It has huge base of customers. Due to large base of clients, the market capitalization of
Nike has increased up-to $115.19 billion in year 2018 (SHTAL and et.al, 2018).
Weaknesses-
 From previous 20 years, company is continuously targeted in respect of poor labour
conditions.
 In year 2018, four female workers have filed a case against Nike.
Opportunities-
 Although, firm has manufactured various products, there are still various products to
innovate (Gürel and Tat, 2017).
 Nike is already offering products in various foreign countries, there is still opportunities
to expand the business in markets like Brazil, India, China etc.
Threats-
 Although, company is dominating the industry of athletic, other new emerging brands
and competition are potential threats to the company.
 There are various firms like Under Armor and Adidas there are spending funds on
advertising and marketing which is increasing the level of competition for Nike.
PEST analysis.
It is a tool used by companies to identify and evaluate the impact of macro
economic factors on business.
Political factors-

Political environment include various factors that can affect the operations of
company. Such as political stability, government rules and regulations etc. Nike manufactures
and offers physical goods therefore, it has to follow the laws related with manufacturing and
taxation. Different political conflicts can make the process of customs difficult (Hofmann, Gold
and Curtin, 2019).
Economical factors -
Economical environment involves factors such as rate of inflation, purchasing
power of buyers, rate of interest on loan etc. The revenue of Nike is also influenced by the
availability of low cost labour in Eastern countries. With the deep pocket of finances, company is
having the resources to chase after small markets that are emerging in which company can sell
more products.
Social factors -
The demand of people have increased for health consciousness. It means that
more and more buyers are moving towards better lifestyle. Therefore, Nike should make efforts
to manufacture better quality of products. Further, company is facing criticism for uncertain
processes of the production.
Technological factors -
Technological environment involves factors such as change in technology for production
and distribution of goods and services. Technology provides ability to firm to innovate products
in different ways. Nike is using social media platforms in effective way to develop the brand
image but, it can result into double-edged sword if it used in wrong manner (Courey, 2019).
CONCLUSION
The above Essay has outlined that SWOT analysis is an important tool that helps
to evaluate strengths and weaknesses, opportunities and threats of the company. Further, it has
been analysed that PESTLE analysis is an important framework that helps to understand impact
of external factors on business.
REFERENCES
Books and Journals -
Courey, A.K., 2019. The Effects of Social Activism on Business Strategy and Revenue as
Observed in the NFL and Nike Consumer Trends (Doctoral dissertation, University of Oregon).

Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical review. Journal of International
Social Research. 10(51).
SHTAL, T.V., and et.al, 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS. 39(12).
Hofmann, A., Gold, N. and Curtin, C., 2019. Nike, Inc: Late Arrival to the'Athleisure-
wear'Trend.
PANDEY, B.C., 2017. Nike Inc-Complete Analysis: SWOT, PESTLE and Marketing strategy.
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