PEST Analysis of Nike in Singapore: Bond University Report

This report provides a PEST analysis of Nike in the Singapore market, examining the political, economic, social, and technological factors affecting the company's operations. The political environment is deemed stable and favorable, with low political risk and open trade policies. Economically, Singapore offers a strong business framework, although labor costs may pose a challenge. Socially, the report highlights the influence of the younger generation's lifestyle and high purchasing power due to high education levels. Technologically, Singapore's advanced IT infrastructure and digital technology adoption are seen as beneficial for Nike's marketing and production. The report concludes by summarizing the key factors that influence Nike's strategic decisions and market performance in Singapore.

PEST analysis of NIKE based on Singapore
“PEST Analysis of Nike in Singapore”
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PEST Analysis of Nike based on Singapore
A. Political Factors of Singapore affecting Nike Company
 Looking at the political environment of Singapore, it is observed that it is fairly
positive and stable for Nike. Nike has a low political risk in Singapore.
 Trade policies are not stringent, and foreign investments are invited in the country
which facilitates Nike to get an entry without any specific barriers.
B. Economical Factors of Singapore affecting Nike Company
 The economic environment is favourable for big companies. The legal and financial
business framework favours Nike as a foreign company. With deep pockets in terms
of finance, Nike has a chance to achieve considerable market share in Singapore.
 On the other hand, where Nike’s revenue depends on low cost labour, there are
shortages of skilled labour and it leads to rise in labour cost for the company. Nike
may have to pay more to their employees and workers1.
C. Social Factor of Singapore affecting Nike Company
 Younger generation in Singapore tends to adapt high end lifestyle and is adapting
western culture and standard of living. This is a favourable factor for Nike to have
more customer base in Singapore.
 Education level is very high in Singapore as compared to other countries in Asia
pacific region. High education level tends to have high salaried job and leads to high
purchasing power. Moreover, the country tries to attract foreign investment to a
greater extent along with tourism2.
1 Contributor, P, "PESTLE Analysis of Singapore.". in PESTLE Analysis, , 2016,
<https://pestleanalysis.com/pestle-analysis-of-singapore/> [accessed 1 April 2019].
2 Bush, T, "A PESTLE Analysis of Nike.". in PESTLE Analysis, , 2017, <https://pestleanalysis.com/pestle-
analysis-of-nike/> [accessed 1 April 2019].
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PEST Analysis of Nike based on Singapore
D. Technological Factor of Singapore affecting Nike Company
 The IT infrastructure in the Singapore is quite advanced. People are now connected
with rest of the world through social media. As a result, Nike will be able to promote
their products on digital media and connect with their customers easily3. .
 Moreover, the country will support the digital technology advancement in production
and other business related operations. Singapore has a good adaptability to digital
technologies like Robotics, Artificial intelligence and Human Sensing applications.
Nike can look forward for technological advancements in Singapore as part of its
business4.
References
Bush, T, "A PESTLE Analysis of Nike.". in PESTLE Analysis, , 2017,
<https://pestleanalysis.com/pestle-analysis-of-nike/> [accessed 1 April 2019].
Contributor, P, "PESTLE Analysis of Singapore.". in PESTLE Analysis, , 2016,
<https://pestleanalysis.com/pestle-analysis-of-singapore/> [accessed 1 April 2019].
International, E, "Sportswear in Singapore | Market Research Report | Euromonitor.".
in Euromonitor.com, , 2018, <https://www.euromonitor.com/sportswear-in-singapore/report>
[accessed 1 April 2019].
Rowland, C, "Nike Inc. PESTEL/PESTLE Analysis & Recommendations - Panmore Institute.".
in Panmore Institute, , 2017, <http://panmore.com/nike-inc-pestel-pestle-analysis-
recommendations> [accessed 1 April 2019].
3 International, E, "Sportswear in Singapore | Market Research Report | Euromonitor.". in Euromonitor.com, ,
2018, <https://www.euromonitor.com/sportswear-in-singapore/report> [accessed 1 April 2019].
4 Rowland, C, "Nike Inc. PESTEL/PESTLE Analysis & Recommendations - Panmore Institute.". in Panmore
Institute, , 2017, <http://panmore.com/nike-inc-pestel-pestle-analysis-recommendations> [accessed 1 April 2019].
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