9 Factors That IllustrateNike’s SWOT&PESTLE Analysis - Noida

Nike is an American multinational corporation founded by Bill Bowerman and Phil Knight in 1964. It is mainly engaged in developing and manufacturing footwear, apparel, accessories, equipment, and more. This company gained popularity within maximum time all over the US market and across the global world.

However, its popularity is still prevalent in the contemporary era and is recognised by million and million global customers. But certain factors govern the overall business strategy of Nike.

So, writing a Nike Swot Pest analysis case study can be daunting. This article would be of great help in crafting a comprehensive case study paper. Therefore, as discussed below, let's learn about Nike's SWOT&Pestle analysis in detail.



Business Strategy of Nike

Swot and Pestle analysis governs the external and internal factors of Nike. Thus, SWOT analysis involves:



1. Strength



The biggest strength of Nike is its slogan,"Just Do It." Thus, it has emphasised that brand can do anything for customer satisfaction

The company has outsourced all aspects facilitating overseas production and hassaved labour cost

Besides being the biggest brand in the US, it also has achieved global recognition in a short duration



2. Weakness



The maximum focus of Nike is segmented on footwear production. So, it must diversify its production of goods and services

The unfriendly labour condition on the global market has affected the brand image badly

Consumers have a perception that Nike is a too expensive and luxury brand. Thus, consumersprefer the same product available at a cheaper rate



3. Opportunities



The emerging markets in countries like India and China are the most significant opportunities for a brand like Nike

Nike has recentlydiversified into accessories and other premium products apart fromits signature footwear segment

The emphasis on the design of higher-end footwear seems to be paying off because it is being seen as a must-have product by customers especially toserve leg problem


4. Threat

With the global supply chain company is subjected to bear hindrances due to international trade practices, including labour strikes in its overseas locations, currency fluctuations

Nike must work to improve its image emerging as consumers are socially and environmentally conscious and may not prefer any product with issues

With the intense competition with Reebok brands, Nike has seen multiple issues. Thus, Nike must define its core competence and implement its strategies accordingly

The ongoing recession period has widely affected the demand margin of Nike, further making the brand cut price of goods and services


Similarly, aPESTE analysis is governed by macro-environmental factors, such as:

5. Political


The stability of the American economy provides ample scope for the growth of Nike with its favourable international tax agreements.

Manufacturing laws and tax regulations are bound to change, affecting the growth of Nike.


The political issues in the global world can affect the customs process that can hamper the smooth operation of the brand.


6. Economical


The financial stability of Nike can easily target markets across the globe and can amplify its reach through new markets.

The costs of products are slowly rising in economically backward countries from where the production of Nike products took place.

Availability of the same kind of product ata lower price is causing a problem for brands like Nike, as genuine products are often preferable.


7. Social

Many people are adopting a health-conscious approach. Thus, change in lifestyle has brought ample opportunities for brands like Nike.

Due to stressed life, people are looking for healthy activities. So, this can bring opportunity for Nike in aiding leisure activities.

Nike follows complete refining procedures to deliver safer products to their customers.



8. Legal

False discounts offered by Nike has hindered the reputation of Nike

Tax evasion is another legal issue that companies should urgently identify business law case study.



9. Environmental

Nike offers eco-friendly products and implements a suitable approach to curb environmental pollution. Thus, Nike ensures to deliver environmental sustainable products.



Parting Thoughts

Each information listed above is carefully analysed from relevant sources. Hence, you can draft a persuasive case study paper on Nike by considering SWOT & Pestle analysis of Nike. I hope it will be a great economic assignment help in your academic success. Good Luck!

Noah Brown, who hails from London, United Kingdom, has completed her PhD in business management and planning. Besides her excellent professional career, Brown is also associated with the academic website MyAssignmenthelp.com for case study writing help.