PEST ANALYSIS OF NIKE
Follow the steps of entering international markets, analyze the target potential markets external environments using PEST analysis model.
Target potential customers and market
Nike typically targets athletes, men and women generally from the ages 15-30. Their target market is people who are active and enjoy higher quality sporting goods and merchandises. NIKE targets all regions with their geographic expansion.
Under its Golf brand, Nike sells golf balls, golf clubs and apparel for both men and women. Nike should continuously develop innovative and stylish golf products to command premium prices. Most people would appreciate as Nike Golf brand has good marketing relationship with Tiger Woods which is a world renowned golfer. For example, Nike Golf’s SQ DyMo driver offers players the ability to customize perimeter weighting to again promote a specified ball-flight. Therefore, sales of golf accessories like golf clubs and golf balls along with footwear assure an additional revenue stream for Nike. If Nike could continuously develop its Golf brand, the target customers would be those people who play golf.
Economic analysis
Nike is a global company based in United States. However, the US economy is experiencing a downturn right now. During economic recession, the income of the customers would decrease. Golf is actually a high class activity as the equipment needed is quite expensive. Therefore, the demand for superior goods would decline and the number of purchases by the consumers will be continuously slowing down. If there is Asia economic crisis, Nike would also be influenced as Nike mainly set up its factories in China due to lower labor cost. However, due to the appreciation of Renminbi, the price of raw materials and labor costs also increase. This result in higher production cost when producing products of Nike.
The economic growth of the company would be seriously affected. For example, Nike’s golf market share has decreased from 4.8% in 2007 to 4.3% in
Target potential customers and market
Nike typically targets athletes, men and women generally from the ages 15-30. Their target market is people who are active and enjoy higher quality sporting goods and merchandises. NIKE targets all regions with their geographic expansion.
Under its Golf brand, Nike sells golf balls, golf clubs and apparel for both men and women. Nike should continuously develop innovative and stylish golf products to command premium prices. Most people would appreciate as Nike Golf brand has good marketing relationship with Tiger Woods which is a world renowned golfer. For example, Nike Golf’s SQ DyMo driver offers players the ability to customize perimeter weighting to again promote a specified ball-flight. Therefore, sales of golf accessories like golf clubs and golf balls along with footwear assure an additional revenue stream for Nike. If Nike could continuously develop its Golf brand, the target customers would be those people who play golf.
Economic analysis
Nike is a global company based in United States. However, the US economy is experiencing a downturn right now. During economic recession, the income of the customers would decrease. Golf is actually a high class activity as the equipment needed is quite expensive. Therefore, the demand for superior goods would decline and the number of purchases by the consumers will be continuously slowing down. If there is Asia economic crisis, Nike would also be influenced as Nike mainly set up its factories in China due to lower labor cost. However, due to the appreciation of Renminbi, the price of raw materials and labor costs also increase. This result in higher production cost when producing products of Nike.
The economic growth of the company would be seriously affected. For example, Nike’s golf market share has decreased from 4.8% in 2007 to 4.3% in