Report: PEST Analysis of NIKE's Business Environment and Strategy

This report provides a PEST analysis of NIKE, examining the external factors impacting its business operations. The analysis covers political factors, such as international laws and political instabilities; economic factors, including pricing strategies and job loss; social factors, such as market trends an...Read More

PEST for NIKE

TABLE OF CONTENT
• INTRODUCTION
• MAIN BODY
• Political-
• Economical-
• Social-
• Technological-
• CONCLUSION

INTRODUCTION
• Business environment consist of
several factors which tend to affect
the organizational working.
• NIKE is the chosen organization for
the analysis in this report the
company tend to provide sports
products to its customer all across
the globe.

Political-
• Changing International Politics- NIKE tend to
provide its products in various geographic areas
and due to which the company has to follow the
international laws for doing its business operations.
• Political Instabilities of UK- Changing political
instabilities of UK also tend to make significant
impact upon the organizational working of NIKE and
this can be seen in case of COVID-19 lock-down in
which organization's working was being affected
significantly.

Economical-
• Job loss of customer due to COVID-19- NIKE has to change its
organizational pricing strategy according to the economical condition of
specific geographic area by which it tend to make sure that it is able to
achieve high profit margin.
• Different pricing strategies- - NIKE is having a high customer base
in which it has customers from different classes of the society because
of which company mostly focuses on providing new and rare products
to the customers by which it can establish premium pricing.

Social-
• Changing market trends and customer requirements- NIKE
operates in a market place which is full of some of the biggest market
competitors and due to which company has to pay high efforts by
which it can provide new and rare products to the customers.
• Segmented customer base of company- The product placements
of NIKE is often done in such a way that it is able to attract the specific
targeted customers bases, now since company often tend to provide
sports bases accessories due to which its targeted customer base is the
younger generation and customers with high physical activities.

Technological-
• Advanced machinery- NIKE is
having a large customer base all
across the globe due to which
company has to implement several
technological advancements in the
working areas.
• Digital platforms- NIKE uses
technological advancements for
establishing efficient communication
with the customers and this can be
seen in the case of company's
digital activities.

CONCLUSION
• From the above analysis it can be
concluded that organizations like
NIKE have to analyse the changing
external factors and have to
implement improvisation its
working process.

REFERENCES
• Alataş, S., Karakaya, E. and Hiçyılmaz, B., 2021. What Does Input
Substitution Tell Us in Helping Decarbonization and Dematerialization?
Industry Level Analysis for South Korea.Sustainable Production and
Consumption. 27. pp.411-424.
• PANDEY, B.C., 2017. Nike Inc-Complete Analysis: SWOT, PESTLE and
Marketing strategy. BookRix.
• FERNANDES, S., HONÃ, I.D. and CRUCHINHO, A., 2020. FASHION
REVOLUTION AS PROMOTER OF SOCIAL INNOVATION AND
SUSTAINABILITY IN FASHION. Revista de Pielarie Incaltaminte. 20(1).
p.51.

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