pestel of nike
Political Factors
Political factors has to do with politics of the day prevailing in country. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. In this particular case, it can be said that it is neutral and thus not expected to cause much rubble in the new companies operations. However, future political challenges cannot be ruled out. Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wear companies. This company is not only positioned as a market leader but also leaders in the industry labor practices initiatives. Although Nike had suffered bad publicity over the last decade, for various reasons, it is best placed in the political climate as an ethical company. This gives it a good public reputation, which keeps on strengthening the brand name. neutrality of USA political temperatures as well as Nikes commitment to industry leading transparency in matters related to social responsibility made the comp
Economic Factors
The increased demand for the products in the sporting clothing market in USA over the last 20 years provided a great opportunity for Nike Shoe Company. The only high quality brand, which existed in the US market, was Adidas shoes from Germany that were very expensive and not available. This economic situation provided a very good environment for Nike brand to take root very quickly due to its availability and affordability. Nike is usually making much profit due to its increased sales and low costs due to economies of scale it is enjoying. Nike enjoyed an economy with high national income. This boosted the demand for its products. The affordability of interest rates made the CEO of Nike to borrow funds which he used to expand the business. The strong US currency made importation f the shoes from Japan easy. This led to the selling of the Nike shoes at lower prices than Adidas from
Political factors has to do with politics of the day prevailing in country. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. In this particular case, it can be said that it is neutral and thus not expected to cause much rubble in the new companies operations. However, future political challenges cannot be ruled out. Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wear companies. This company is not only positioned as a market leader but also leaders in the industry labor practices initiatives. Although Nike had suffered bad publicity over the last decade, for various reasons, it is best placed in the political climate as an ethical company. This gives it a good public reputation, which keeps on strengthening the brand name. neutrality of USA political temperatures as well as Nikes commitment to industry leading transparency in matters related to social responsibility made the comp
Economic Factors
The increased demand for the products in the sporting clothing market in USA over the last 20 years provided a great opportunity for Nike Shoe Company. The only high quality brand, which existed in the US market, was Adidas shoes from Germany that were very expensive and not available. This economic situation provided a very good environment for Nike brand to take root very quickly due to its availability and affordability. Nike is usually making much profit due to its increased sales and low costs due to economies of scale it is enjoying. Nike enjoyed an economy with high national income. This boosted the demand for its products. The affordability of interest rates made the CEO of Nike to borrow funds which he used to expand the business. The strong US currency made importation f the shoes from Japan easy. This led to the selling of the Nike shoes at lower prices than Adidas from