Pestle Analysis NIKE 2019 - Nike Case Study | The Rise of Nike | MyAssignmenthelp

Summary

In this insightful video, marketing expert Mark Salinger from assignmenthelp.com dives into a detailed PESTLE analysis of Nike, the world's largest athletic footwear and sports gear supplier. He covers political influences like government support and challenges like U.S. sanctions on Iran, economic factors affecting Nike's growth, social trends emphasizing fitness, technological advancements in IT infrastructure, environmental efforts to reduce carbon footprint, and legal issues including tax evasion and marketing practices. The analysis aims to provide a comprehensive understanding of external factors impacting Nike's market presence and global expansion.

Takeaways

• 🏆 Nike's brand value in 2019 was $32.4 billion USD, with a net income of $4.03 billion USD, making it the world's largest supplier of athletic footwear and sports gear.
• 📚 Originally founded as Blue Ribbon Sports, Nike was established by Phil Knight and Bill Bowerman on January 25th, 1964.
• 🔍 Political stability and government support are key to Nike's growth, with favorable tax agreements and infrastructure support, but political issues like U.S. sanctions on Iran have posed challenges.
• 💡 Nike's marketing strategies, including the 'Just Do It' campaign, have faced backlash, particularly when associated with controversial figures like Khalid Kaepernick.
• 💼 High political lobbying expenditures, such as the $750,000 spent in 2016, indicate Nike's efforts to navigate political challenges and maintain market presence.
• 📈 Economic factors like the growth of developing markets and stable developed countries have positively impacted Nike's business performance.
• 🌐 Nike's success in managing growth and revenue from 2005 to 2018, despite minor fluctuations, highlights its resilience in the face of economic challenges.
• 👥 Social factors such as increased awareness of fitness and sports, along with rising individual wealth in developing countries, influence the demand for Nike's products.
• 🛠️ Technological advancements have allowed Nike to automate operations, reduce labor costs, and integrate mobile technologies to enhance consumer engagement.
• 🌿 Nike's commitment to environmental sustainability, as evidenced by its ISO 14001 certification, includes using organic cotton and focusing on carbon footprint and waste management.
• 📖 Legal challenges, including gender discrimination lawsuits and tax evasion allegations, have been obstacles for Nike, affecting its brand image and operations.

Q & A

What is the brand value of Nike in 2019?

The brand value of Nike in 2019 was 32.4 billion US dollars.

What is the net income of Nike worldwide?

Nike's net income worldwide is 4.03 billion US dollars.

What was Nike formerly known as before the brand name change?

Nike was formerly known as Blue Ribbon Sports.

Who established Nike and when was it established?

Nike was established by Phil Knight and Bill Bowerman on January 25th, 1964.

What types of products does Nike offer?

Nike offers athletic footwear, apparel, athletic support equipment, and accessories.

How does the political environment affect Nike's business processes?

The political environment affects Nike's business by influencing factors such as government policies, international tax agreements, and infrastructure support, which can create opportunities or impediments for growth.

What economic factors have positively contributed to Nike's growth?

Economic factors such as the rapid growth of developing markets, stable economies in developed countries, low labor costs in Far Eastern countries, and outsourcing policies have positively contributed to Nike's growth.

How does the social factor of increasing individual wealth in developing countries impact Nike?

The increase in individual wealth in developing countries allows Nike to cater to consumers with higher purchasing power, offering safer products and marketing campaigns that emphasize product safety and quality.

What technological advancements has Nike harnessed for its operations?

Nike has harnessed advanced IT infrastructure, online technology for contactless payments, automation in operations, and integration of mobile technologies to reach out to consumers and enhance its digital presence.

How does Nike address environmental factors in its product development?

Nike addresses environmental factors by following the ISO 14001 standard for product development, monitoring its carbon footprint, managing waste, using organic cotton, and ensuring the recyclability of its shoes.

What legal challenges has Nike faced in terms of gender discrimination and work conditions?

Nike has faced legal challenges over gender discrimination and hostile work conditions, as well as charges for tax evasion and scrutiny over its marketing practices.

How can assignment help.com assist with case studies involving companies like Nike?

Assignment help.com provides in-depth and accurate analysis of case studies, helping students understand complex business strategies and achieve success in their marketing classes.