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Nike: The Pest Analysis Of Nike

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Macro Analysis
Pest Analysis is the framework used to analysis the organisation’s external macro environment that present opportunities or threats to a business (OxLearn, 2013). These are all generally considered to be outside the control of the business although many, business will go to great lengths to try and control them. The PEST analysis particularly identifies key dangers that are taking place which influence the organisation in the future. PEST standing for Political, Economic, Social and Technological.
Politic Analysis
Nike has benefited from the growth-orientated policies of the US government which will foster its business growth. In this context, Nike has been aided greatly by the US policies, hence providing them with the opportunity to modernize their products (Cooter, et. al., 1988). The support accorded to Nike by the US government, Nike enjoys low interest rates and stable currency conditions and competitive tax arrangements which able to advance the growth of the Nike. Stable political conditions in most major markets present opportunities for Nike to grow its business in these areas. Also, expanding free trade policies facilitate better market penetration overseas. Moreover, improving…show more content…

Consequently, more and more people would like to do exercise such as playing badminton more frequently. The demanding for badminton product such as sport shoes is required. With an increase in demand for shoes, Nike is at the forefront of this surge of demand as people are looking for sport shoes. Therefore, Nike has to produce and supply more sport shoes in order to fulfil the market demand. However, the sweatshop problem which faced by Nike is become more critical and the negative brand image would be occur if Nike is failed to manage it well. This would cause bad publicity and declicing sales because the the society demands more socially responsible

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