Marketing Strategy of Nike: PESTLE and Porter's Five Forces Analysis

Desklib provides past papers and solved assignments for students. This report analyzes Nike's marketing strategy using PESTLE and Porter's Five Forces.

Strategy, Innovation and Enterprise
1

Contents
TASK...............................................................................................................................................3
Critically evaluate how strategy has been developed in the organization?.....................................3
Assess the effectiveness of strategy pursued?.................................................................................5
References........................................................................................................................................7
2

TASK
Critically evaluate how strategy has been developed in the organization?
In the Nike has to develop its strategy by the uses of PESTLE and POSTER FORCES.
PESTLE ANALYSIS POSTER FORCES
POLITICAL: - It is most important to analyze
the political environment of Nike. If the
political environment changes which are
directly affected by the Nike production of
good and their profit which is made by their
product and services.
Rivalry competition: - This forces analysis the
current competition from Nike as well as
determining the number of competitors in the
markets which is helping to developing the
Nike strategy. Nike provides a quality product
and services with their best performance to beat
their existing competitors.
ECONOMIC: - Nike deals in product and
services and it’s providing a medium range and
quality product in the markets.
Power of suppliers in Bargaining: - This force
of POSTER evaluating the power of Nike
suppliers in the market. Nike suppliers have the
ability to provide their product and services in
multiple countries. This forces identifying the
competitors’ suppliers’ strategy and helps to
develop their strategy.
SOCIAL: - Nike maintains their social status in
worldwide. In worldwide, each and every
individual wants a quality sports product for
their better lifestyles, on the other hand, it
would make Nike happy as well as helps to
develop their strategy for achieving the goals
and objectives.
Power of customer in Bargaining: - This force
of POSTER identifying the power of customer
as well as helps to analysis the quality product
and price of the product which is affected by
the customers of the Nike. Customers have the
power to right to choose then Nike seller has to
solve this issue politely otherwise customer
3

switch their product and services.
TECHNOLOGY: - Technology helps to Nike
for more developing their strategy and provides
an innovative product and services. Technology
helps to Nike strategy to build their image and
attracting the customers towards their product
and services by the uses of social media.
Threats of new entrants: - Nike has to consider
the threats of the new entrance for new
innovative products in the market. In this
process required more capital, cost, and
advertisement for creating the demand for Nike
products. In future Nike provides their better
performance in the market.
LEGAL: - Legal factors are affecting Nike by
the different laws, rules, and regulation of every
country. In every country have different
policies and fiscal policies which directly affect
the Nike strategy and the way of operating.
Threats of substitute product: - This force of
POSTER helps to Nike analyzing the
customer’s why they switch their product and
services in the competitive market as well as
how they compare the prices and quality of the
products. It directly affects the business of Nike
and helps in developing the new strategy.
ENVIRONMENTAL: - There are some
environmental issues which affect the Nike
business are Abiotic and biotic. Abiotic which
is included with temperature and water soil in
other countries? The biotic factor which is
included with predator and competitors.
4

Assess the effectiveness of strategy pursued?
In Nike to develop their strategy by the help of PESTLE and POSTER FORCES which is
effective to attract the customers and understanding their demands from the Nike business.
PESTLE strategy is a very effective strategy of Nike and it helps to analysis the external
environment of Nike as well as helps to develop their business more. It is the process of
analyzing the political, economic, social, technology, legal, and environment for the proper
strategic planning in Nike. PESTEL provides the advantages helps to the Nike in the
development of the product, launching of the product as well as analyzing the strategy of existing
competitors in the markets.
POSTER strategy is also an effective strategy of Nike which is to analyzing and identifying the
Rivalry competition, the power of suppliers in bargaining, the power of customers in bargaining,
threats of new entry, and the substitute of the product. It helps to Nike to understanding the needs
and customers demands as well as helps to maintain their quality of product and services in the
market. The Poster forces evaluating the designing of the new product and helps to develop as
well as increases their growth in the market.
Customer feedback
According to the survey, the customer is satisfied with the product and services of Nike as well
as provides a quality product and services in the market. Nike provides customer care to solve
the issues of customers immediately. Nike has a perfect relationship with their customers and
they are properly maintaining their relationship with providing a proper product and services.
5

Analyses range of alternative strategies the organisation might follow?
Nike has to become the main leader in the markets by providing quality product and services to
their customers. If Nike cannot use the PESTLE and POSTER strategy they might be following
the alternative strategies are follows;
Market leader: - Nike has to launch a better product in the market for the proper attraction of the
customers towards their product and services. It launches its LOGO for focusing on the product.
Nike has to apply new technologies for the development of its growth and market share.
Maintain their leadership: - Nike has to provide a better product in sports as well as using digital
marketing in the market for easily providing information about that product and services. Nike
has to maintain their relationship with their customers and providing them proper services and
solves their issues immediately.
Respond to competitors: - Nike has to apply the different techniques for analysing the
immediately respond from the customer’s and analysing the needs and wants. Nike has a top list
in the sports shoe production by their new technology and their different styles of selling at
social media. It performs better in the markets and that alternative method and strategies help to
provide a maturity level in the market.
6

References
 Business news daily, 2018. Porter's Five Forces: Analyzing the Competition. [Online] Business
news daily. Available at: https://www.businessnewsdaily.com/5446-porters-five-forces.html
[Accessed on February 26, 2019]
 PESTLE ANALYSIS, 2016. A PESTLE Analysis of Nike. [Online] PESTLE ANALYSIS.
Available at: https://pestleanalysis.com/pestle-analysis-of-nike/ [Accessed on February 26, 2019]
 PESTLE ANALYSIS, 2016. The advantages of PESTLE analysis. [Online] PESTLE ANALYSIS.
Available at: https://pestleanalysis.com/advantages-of-pestle-analysis/ [Accessed on February
26, 2019]
7