Macro Environment should be defined, as the “major external and uncontrollable factors that influence an organization’s decision making, and affect its performance and strategies. These factors contain of; demographics, economic, environmental, technological, political and cultural forces” .
Nowadays, the level of sales of Nike is still increasing, eventhough the company had some increases and decreases as it can be seen on the graph below (figure 1), the intensity of vending of Nike products is growing and the company is investing in emerging markets such as China, Mexico, South Africa, Hungary, Pakistan and Philippines.
Nike maintains a distribution channel in more than 100 countries. It is focus on the following primary regions: UnitedStates, Europe, Asia Pacific and the Americas (North & South).
Moreover, the sale of Nike products in the athletic footwear industry means a 31 % of the global market share. Nike Inc. has been able to reach the first position through “the production of quality, innovative products and aggressive marketing. As a result, in late 2008, Nike Inc. generated nearly $18.6 billion in revenue.
Trends represent opportunities and threats to this business, it is important to highlight the following:
Opportunities | Threats |
The structure of the company is well established, this makes them good providers and good distribution channels, giving them the advantage to get noticed more easily, smoothly and sure to reach the proposed success | The policy may affect the economicenvironment and that if there are problems in this profession may have low sales. |
The quality and quantity of customers that will provide the opportunity for Nike to get to their homes | Globalization now affects every business worldwide |
The ease with which Nike can get more clients in order to expand their market. | Could be affected if their employees come to form a union to demand theirrights. |
Any type of activity that is present in a given time to sponsor the company and that makes your company more is known. | Companies that represent their competence (Reebok, Adidas, etc.), can implement an innovative product that could revolutionize the market. |
The use of the market that Nike may have, in order to find the weaknesses of the competitors. | |
Any event that isexternally, where Nike can promote its products | |
The current economic situation in Spain, produces that many families that used to be users not, maybe not loyal customers but normally buyers of Nike rather than other brands, have changed their loyalty to cheaper brands such as Decathlon brands or even trainers without brand.
According to some articles the tendency oftrainers or sports shoes in Spain is growing, increasing a 4.9% in 2009. However, in the same year the value of this type of products had decline by a 3.5 %.
The Nike Company has recognized the impacts of natural resource exhaustion and the need to move towards a green economy. As well, Nike uses the report to share their vision of achieving a closed loop business model, wherethe goal is to achieve a chain of free delivery and where waste products and materials can be reused continuously. This vision is designed to promote sustainable business models and innovative processes.
Nike lines up its business and thrives in a future, in which natural resources will be scarce and expensive. From now on, Nike is taking sustainable decisions that contribute to currentprofitability. A simple example is the redesign of the classic orange box of shoes (figure 2). It looks exactly the same but uses 35% less pulp; this is helping to save the equivalent of 200,000 trees per year and saving the company lots of money.
In 2009 Nike instigated the formation of a coalition of consumer companies named Innovative Business of Climate Policy and Energy...