Nike Macro Environmental Analysis Essay

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PA1: Nike - Environmental Marketing Analysis Mahendranath Gunti BUS 510 - Marketing Management Westcliff University Instructor: Dr. Geraldine Goodstone Nike is a global brand headquartered in the United States, Europe, and the Asia Pacific region, specialized in the manufacturing of athletic apparel, footwear, accessories and equipment. Nike products can be found in over 20,000 retail stores. This paper focuses on the six macroeconomic factors (political, Economic, Social, Technology, Legal and Environmental) that impacts Nike’s products in the market. Political Nike benefits from many policies made by the US government, maintaining low interest rates, currency exchange stability, and competitive tax arrangements with other…show more content…
Technology Nike has been able to use improved levels of digital metrics in analyzing customer demand and alter its segmentation to meet those demands. Integrating supply chain and billing/transaction management via SOAP (Simple Object Access Protocol) and MPPS (Massively Parallel Processor System) systems to enhance consumers shopping experience in the digital market and enable consumers to make payments via mobile phone platforms, accelerating the process of filing the gaps in having its workforce to manually perform supply/inventory management activities which is time consuming. Legal Nike faced legal difficulties in the course of its global expansion, following allegations of sweated labour, it closed some factories in Pakistan and moved its operations to Thailand and China. However, the contingent unemployment led to difficulties with the Pakistani authorities, as well as criticism over the resulting unemployment. In 2003 Nike countered claims that it paid below the minimum wage in countries such as Indonesia, stating that it had paid, on average, twice the minimum wage as defined in countries where its products are produced under contract. Nike was also sued under California Unfair Competition and False Advertising laws, on the basis that its statements were false, following initial defeat and later appeals to the California Supreme Court, Nike settled privately so as to stop further reveling that could possibly damage its reputation.

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