Nike Pestel

Audit of Nike's Strategies
PEST Analysis of Nike
Feb 12, 2009 Gwendolyn Cuizon
Nike is the leading footwear company in the world. PEST Analysis sums up how the company's business strategies farein the macro environmental level.

Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic footwear, apparel, equipment and accessories. Nike employs bothtraditional and non-traditional distribution channels in almost 200 countries with primary market regions in the United States, Europe, Asia Pacific, and the Americas.
Nike has some 20,000 retailersworldwide including Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and Web sites which sell Nike's sports and leisure products. Nike accounts for 33% of the global market share in theathletic footwear industry.
PEST Analysis of Nike
Nike, being an international organization, needs to focus on macro environmental factors. Macro environmental factors comprise Political, Economics,Society, and Technology

Political Analysis
The government must create economic policies that will foster the growth of businesses. Nike, fortunately, has been helped by the US policies which enable itto advance its products. The support accorded to Nike by the US government, particularly in the general macroeconomic stability, low interest rates, stable currency conditions and the internationalcompetitiveness of the tax system, form the foundation critical to Nike’s growth.
Economic Analysis
In economy, the biggest threat for Nike would be economic recession. During recession, Nike’sgrowth will be adversely affected. The US economy is experiencing a downturn right now. Consumer purchases are slowing down. Currently, Nike's feeling the pinch of the economic recession. The Asianeconomic crisis also affects Nike since its goods are manufactured in Asia. The labor costs and material prices are going up.
Nike's growth is not just affected by the local economy but also in the...