Important facts in the case study on Nike pestle analysis

Nike is an internationally renowned brand in sports apparel, accessories and footwear. Nike has its presence across several countries and numerous sportsperson endorse its products. Pestle analysis is aimed at identifying the effect of external factors affecting a business organization. Here is a case study on the pestle analysis of Nike by assignment help UAE

1.Political- these factors are not visible from outside but are quite important for the survival of a company. Since Nike’s home country is USA, it enjoys a large number of political benefits. Primarily is the availability of superior production conditions and low interest rates. It gets direct advantage of lower tax rates on US products in other countries. Lower import and export rates from US also helps Nike in mobilizing resources. 

2.Economical- the performance of Nike depends a lot on the market conditions of other economies. Developed countries such as US provide a stable market but sale in developing countries is not so smooth. It has to change its policies continuously to keep up with the changing trends in developing and slow economies. For instance, a recent slowdown in the Chinese economy affected its revenues hugely. 

3.Social- social factors have significant effect on a company’s sales. Increasing individual wealth in developing countries allows people to spend on leisure. Nike has the potential to tap this group through its superior quality products. The emphasis of people on safety can also be exploited through marketing of its athletic equipment and footwear. 

4.Technological- rapidly changing production technology is both helpful as well as a source of trouble for Nike. Competing firms are hugely spending on R&D of advanced equipments and footwear. In such a competing market, Nike has to spend a considerable amount of resources in coming up with better products. Higher technological standards are imperative to compete with superior products in the market. 

5.Legal- revision in laws of market and production countries significantly affects a company’s business. Changes in labor laws affect the production costs severely. Company has to spend more on the same quantity of production. Changes in environmental laws also affect business. Similar changes in import and export duties affect the costs of products in market. 

6.Environmental- the effect of Nike’s production units is similar to any other industry. It emits greenhouse gases as well as pollutes regional water bodies. To show its emphasis on pollution control, it has launched several pilot projects. Their mission is the reduction of carbon emission and waste management. Pestle analysis of a company is regularly given to management students to get a deeper insight on the working of a business organization. However, it is a time consuming process and therefore students fail to analyze all the important factors. If you are also in need of management assignment help, we are here for support. We provide assignment help services to college students. Our team is highly qualified and experienced in preparing quality assignments as per the latest guidelines of universities. Our services are cheap and plagiarism free.