Nike Pestle Analysis

NIKE Inc. has been the worldwide leader of athletic shoe sales for many years now. The company’s successful brand image combined competition and enablement for the competitive, athletic user. Nike has to modify their brand to a focus of excitement and freedom and not just competitiveness. By collecting and studying an assortment of material we could be able to understand where NIKE is currently placed in the athletic shoe industry compared to their competition, and how they will be able to adjust their brand focus so it can be more effective in the future. These adjustments can help NIKE reach the more casual group of urban runners and ultimately increase the sales forecasts, while still controlling a percentage of the market for athletic shoes.

Nike’s employment of the cultural relativism philosophical approach, used to justify ‘sweatshop’ labor practices in developing countries, had a detrimental effect on the reputation of the company. In 1998, Nike had to lay off staff amid lagging sales resulting from the backlash against the company. Today, Nike is recognized as the leader in athletic apparel, and one of the favorite brands among millennials and teens. A significant part of that success is attributed to the company’s dramatic change in social responsibility, initiated by its then CEO, Phil Knight, in 1998 (Lutz,

time. All and all, Nike serves a market that is extremely sensitive to organization’s level of social

Everyday, billions of people look down at their feet and squeeze them into a pair of shoes. For probably most of those people in America, when they look down at their feet, they see a shoe with a swoosh on it. This swoosh belongs to no other than one of the most popular sneaker companies, Nike. I decided to look further into this popular shoe company's success. It turns out Nike isn't even one of the oldest shoe companies, but it is less than 60 years old. Nike had to figure out how to become better than just an ordinary sneaker company.

To conduct this study on Nike I used a mix of primary sources, books, and websites that are all dedicated to Nike Brand’s past and present history. All of the sources I used have proven to be credible in the sneakerhead world and are sources that Nike will leak information to so they can publish it and make it known to everyone it may interest. Additionally, I used a connection I have with the District Loss Prevention Manager at Nike, Inc for the greater New York City Area to obtain an interview in order to gain insight into why Nike conducts limited releases the way they do. To protect his identity, for this paper I will be referring to him as “Bill Harris” as he provided me with insider information that is classified and

     History: NIKE, Inc. is engaged in the design, development and worldwide                 marketing of footwear, apparel, equipment and accessory products. The                 Company sells its products to retail accounts and through a mix of            independent distributors, licensees and subsidiaries in over 120 countries            around the

To this point Nike has been able to resolve these issues and fight off most of the threats it has encountered. They will be able to do this as long as they maintain their strong management and leadership team, maintain their strong customer loyalty, maintain their dominant presence on social media and through e-commerce, continue to provide an innovative and a diverse range of products, and if their brand recognition and image remain high. If they can do all of this or “Just do it!” they will continue to be the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports

Nike is a world famous company, known for their high quality of sleek athletic shoes. They are the biggest shoe company in the world and are an industry leader. Nike is a huge global corporation established in 1972 by former University of Oregon track star Phil Knight. Nike is now a leading marketer in athletic shoes and appeal around the globe. They make 27.8 billion dollars in annual revenue and sell their products in more than 140 countries.

Title of Assignment: Integrating Business Values: The Legality, Morality, and Social Responsibility of Nike’s Overseas Labor Practices and Misleading Statements to the Media.

The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of the Nike product.

Nike’s organizational Form reflects a conglomeration of resources, processes and people around the activities most critical to their target customers in terms of its Value Proposition. It decided therefore to concentrate in depth on the critical activities and competencies rather than increasing the breadth of its

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

One of Nike’s main opportunities is product development. Developing their product range makes them more competitive and because products tend to go out of fashion quickly, Nike must introduce new products relatively fast because consumer demand the newest and latest products. Increase in internet shopping will no doubt reduce the cost and improve prices making them even more competitive.

During the late 80s and early 90s Nike was faced with a series of labor strike back at home due to unethical labor practices by its independent countries in third world countries. It is well known for Nike to outsource almost all its production from third world countries at cheap prices and sell them in U.S. market at an abnormal profit. The company began outsourcing its products from Japan where labor was competent and wages were very low. The living standards were raised which prompted Nike to outsource its products from Thailand, Pakistan and Indonesia since wages in these countries were extremely low and labor for these products were competent due to rapid development of the Japanese economy. The outsourcing of footwear products from Asian countries enables Nike to earn high profits and enjoy a competitive advantage over its rivals in the footwear industry. The company invests the high profits realized in marketing its products through celebrities. For instance, Michael Jordan was used to advertise the positive image of Nike Company (Lipschutz and James, pp. 87-96).

Nike is one of the largest, most popular brands in the world. It is a business that is continuing to grow while it is already making billions yearly. By moving to developing countries and emerging countries, Nike gets cheap labor and low facility cost. As a result, they set their product prices lower than the competition to attract more customers. Nike’s allegation of poor working conditions and child labor has become a global issue and it affected the stocks dramatically. Nike’s image has been permanently damaged. Running a company as big as Nike, and other major companies like Reebok, and Nestle is not an easy task.