Essay on Pestel Analysis, Adidas

Producing product overseas puts Nike at risk of overseas sourcing, manufacturing, and financing. Nike buys and sells to different countries using different currencies. The currency rate fluctuates very often and Nike, at times could take a loss. This is a risk most companies cannot take. Nike has the ability to produce materials, import product and sell product in international market during a time of disease outbreaks, terrorist attacks, and military conflict. With these risks there are few companies who can afford to take these risks (aflorzak.com). This also proves no new threat for Nike.

The interest-rate effect explains that when the price level decreases, consumers have more money left over after consumption (because prices have dropped) which they can then place in financial intermediaries (banks) who can in turn loan those funds out. An increase in the supply of

It is very common in a large business to move abroad but there are a lot of factors to be considered when planning to start operation in a different country as countries differ depending on their background, policies, infrastructure and stability. In this report I will compare the challenges to business activities within Nike. In two different economic environments: India and the UK.

Our extent for being responsible for the ways in which products are made or developed is limited. We in general truly are catalysts for big companies such as Air Jordan, as we are the ones that drive them by buying their products at great rates. Therefore the need for them to have mass productions of products at low costs well only come by the way of child labour. Whenever I have bought a pair Air Jordan shoes I usually have done for the simple reason of them being “popular”. Thus, due to their popularity there must be a substantial amount of sales, which puts the product at a high demand leading these companies to mass produce these products so they can ink out every single penny. The companies would face a problem of having to produce these

It is a wildly know fact that Nike own many factories across the world although, mainly in third world countries such as Indonesia. Ironically the example of Nike acting unethically is located in a factory named Pou Chen in Indonesia; in 2011 workers reported acts of both mental and physical abuse in the factory (Stewart, N 21st April 2013). Examples of physical abuse included acts such as workers being slapped and kicked. It is needless to say that physical nor mental abuse in the workplace should never be permitted no matter the county or the situation. However: after all this has been made aware to world Nike treat their employees in this fashion and it has not been the first time either it still astounds me that Nike are still the world’s biggest sporting retailer they crush their nearest competitor Adidas in terms of brand value by having a total brand value of; seventeen billion which makes Adidas brand value of only seven and a half billion (World Finance N.D.) look like a pathetic attempt at trying to compete with Nike. With Nike expanding their business by investing a large amount of both time and money into fashion, with their most noticeable contribution being ever growing trainer collection. So with Nike being without a shadow of a doubt being the biggest sports retailer in the world and being

Adidas is a sportswear manufacturing company started by Adolf Dassler. Adidas group has incorporated brands including Adidas, Reebok, TaylorMade-Adidas and Rockport. The wings of the company are widespread and have assimiliated other productions including handbags, shirts, spectacles, watches, balls, and sportswear. Adidas is being the largest company that sells footwear in the European market and have achieved a momentous market share at the global platform. Adidas has achieved phenomenal sale and have reached the pinnacle of success on the global scale with other international footwear companies (McDonald & Milne, 1999).

Adidas is a large sportswear brand with a large customer base for all genders and ages. Adidas who is a very similar brand to Nike, have exclusive ranges, including their Jordan range and Original, they are also a

Therefore it makes it hard for companies like Nike, Adidas and Under Amour etc. to be able to have power over the customers. If a buyer is dissatisfied with any company in the industry; that buyer can easily switch to another company to acquire the products that they need.

Interest rates are normally associated with inflation. Consumer spending and economic growth is encouraged as a result of low interest rates. However, inflation can occur if supply is lower than demand due to consumption increases but this is indeed not a bad outcome though foreign trade and investment will be lacklustre as opposed to the cash rate being higher which more likely attracts foreign investment and trade.

Not only does Nike have a responsibility to be in compliance but also the host governments have a responsibility to protect the citizens who live and work in these countries. The enforcement of

As the political situation is stable, so its better for business to invest money in securely. In that case, there is no political bad affect in Nike business in the united kingdom.

It seems Adidas works to be transparent with the global community, they are striving towards meeting all customers’ needs, in all walks of life, while giving back to communities. They follow a corporate mission that reflects human resources, social and environmental affairs, and community affairs; thus, good corporate social responsibility

1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the

We as a whole know how quickly the mechanical scene changes and how this effects the way we advertise our items. Innovative components influence advertising and the administration thereof in three unmistakable ways:

Since Adidas Group is a very large corporation; it has to structure the organization efficiently and effectively in order to