Nike Inc Pest Analysis

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PESTEL Analysis

Political

The main countries that Nike trades in are America (where Nike originated) and the United Kingdom and other European countries such as France and Germany.

In these main countries that Nike sell products in there is stable political environments where there is a democracy meaning that the governments in this countries have been elected by the general public in that particular country. The majority of these countries home and export markets have been boosted with the inclusion of the euro meaning that it is easier to trade between countries. This is an advantage to Nike, as they do not need to be influenced by exchange rates when exporting goods from one country to the other.

In both the United Kingdom and The USA general elections are on the horizon they are still a long way away but the respective governments are now starting to enforce policies with election in minds. This could influence interest rates meaning that more people will have disposable income and then Nike may decide to use big advertising campaigns so that this disposable income can be spent on Nike.

Nike has to be aware of pressure groups trying to get bans on methods that Nike use. This could be things such as trying to stop Nike from being able to set up factories in undeveloped countries and also using certain leathers coming from animals to make football boots.

Nike needs to be aware of any help they could get off the governments such as getting subsidies for setting up Nike factories in areas of high unemployment like Nissan setting up a major factory in Sunderland. This could be a big help to Nike as it would mean getting planning permission for a factory and it would also mean they can import more goods into this particular countries markets.

Economical

Social

Nike are a multinational company so these affects the decisions that they make when designing a new product or making a new advertising campaign.

A big decision for...
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