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What political environments does the nike face in international market

Nike Inc Add in library Click this icon and make it bookmark in your library to refer it later. The company has successfully made its presence by more than 930 retail stores across 190 countries all over the world.

  1. S is for Social Public Relations has never been more relevant than today. Of course, there are only a few factors which affect Nike with regard to this, but they are worth stating.
  2. Social media is one great example how technology can affect businesses. Stable political climate in most major markets opportunity Expanding free trade policies opportunity Improving government support for infrastructure opportunity Stable political conditions in most major markets present opportunities for Nike to grow its business in these areas.
  3. However, overtime Nike has managed a lot of this pressure and has framed policies making it mandatory for its suppliers to be environment friendly. For this reasons, the company has easily make strategies for value based pricing and price advantages.
  4. Also, Nike occasionally meets legal repercussions for its shady marketing practices, which include false discounts [4].
  5. Apart from it the technological, environmental and legal factors have grown increasingly important and must be attended to, if a company wishes to maintain a healthy bottom line. Similarly, the company has opportunities to improve its health and safety measures to address expanding health and safety regulations.

The company generally operates as an autonomous distributors and licensees. Now the company is all set to increase its sales ratio through new stores rollouts and continual digital enhancements and innovation.

This report will prepare for the board of directors of Nike Inc. The primary focus of the report will discuss the internal and external business environments related to Nike and evaluate potential market for international market expansion. Discussing the suitable international marketing strategies, the report will recommend key areas of marketing mix that needs to be adapted or standardized by the chosen company. Nike Inc is a popular sport retail brand and recognized as the premium manufacturer of footwear, sports accessories, apparel for athletics and other equipments.

In this section the external business environment of Nike will discuss the threats and future business opportunities in the macro or remote environment. The sport business of Nike has influenced by political factors Czinkota and Ronkainen 2013. The company has been fortunate because the government of US has already enforced several policies which will foster its growth of the business Nike.

  • Do you know of any other factors which might be relevant to Nike?
  • The company also has the opportunity to use these programs to address climate change, which affects supply chains and the appropriateness of Nike sports shoes and apparel in certain regions;
  • The company has successfully made its presence by more than 930 retail stores across 190 countries all over the world;
  • On the other part of the global world, the company finds challenges such as constantly changing globalized framework, political consumerism which influences in the opportunities of the trans-national companies which are outsides regulatory powers of national governments Nike;
  • On the contrary, Nike finds several enthusiastic market opportunities by using mobile technologies for their products to capture consumers who frequently use such apps and mobile tools;
  • Most of them are not realizing sufficient profits because of a stronger dollar since the recession.

Nike enjoys low rates of interest and steady exchange rates and competitive tax provisions which helps it immensely to advance its growth. The government has already taken initiatives to make transparent global value chain business. All countries are already suffered from political unrest. Furthermore, the trade protection policies in certain nation have also adverse effect on sales and services of Nike.

Like majority of the consumer facing firms, Nike faced difficulties due to challenging trading conditions since the financial crises of 2008-2009 and contingent economic slowdown.

Nike Inc. PESTEL/PESTLE Analysis & Recommendations

This situation has applied in both the Asia Pacific region and Western markets. Nike Inc is also believes in overseas economy. A weak Asian and Euro recession is going to be a biggest setback for the company.

However, the company finds slow but stable growth in these countries. There are many high-growth developing countries, ensures rapid growth in the developing market, however escalating labor costs in the supply chain of the company and production facilities is indeed a matter of concern. Due to growing preoccupation with health and fitness, Nike Inc has been constantly evaluating themselves in the emerging market.

A PESTLE Analysis of Nike

However, the company previously faced many issues regarding the rising demand from its CSR. On the other part of the global world, the company finds challenges such as constantly changing globalized framework, political consumerism which influences in the opportunities of the trans-national companies which are outsides regulatory powers of national governments Nike. However, there are several positive socio-cultural factors such as increasing wealth in the developing countries individually, intention of giving more emphasis on safety of the product, and emerging consciousness of sports and health-fitness.

This sport retail business is constantly transformed according to technologies available for business processes.

Economic Factors Important to Nike Inc.

Thus, rising obsolescence in the technological field also threatens the company by putting pressure to increase its product development efforts Nike. On the contrary, Nike finds several enthusiastic market opportunities by using mobile technologies for their products to capture consumers who frequently use such apps and mobile tools. In this context, various technological factors are found which significantly affects Nike Inc.

  1. The company generally operates as an autonomous distributors and licensees.
  2. In the past Nike has faced several lawsuits related to labor abuse and wages.
  3. Service The company cares for customers and their demands Nike has given more importance in after sales service and value added services.

Larger implications of environmental law create opportunities for Nike Inc Nike. These improve the sustainability of the business activities that can easily address climate change. There are various ecological or environmental factors are notable such as growing laws for environment, climate change and rising sustainability strategies among firms.

There are various legal considerations are significant in the retail sport manufacturers like Nike such as improving law implications across the developing countriesrising consumer laws in developing countries and larger application of health and safety regulations. How organization creates values — it is always a significant business consideration.

PESTEL/PESTLE analysis of Nike

The value that has created and captured by a firm is the profit margin. Using this technique, the report will identify how inputs of Nike are changed into the purchase of outputs by consumers.

Being famous as local logistics providers, the company has been engaged in importation of specialized materials and successfully maintained its inventory. Marketing and Sales High brand reputation and recognition have already been achieved worldwide by the company.

For this reasons, the company has easily make strategies for value based pricing and price advantages. Sometimes, the company used aggressive marketing strategies as well. Service The company cares for customers and their demands Nike has given more importance in after sales service and value added services.

In this section, there are four countries are chosen to analyze the potential international markets. These four countries include Finland, Cyprus, Indonesia and Australia.

  • In the case of Nike Inc;
  • This report will prepare for the board of directors of Nike Inc;
  • Moreover, improving government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets;
  • To us, this may seem insignificant, but Political factors decide the survivability of an organization;
  • They may have a strong brand and healthy finances, but they need to pay careful attention to the morality of their practices and watch out for other growing, cheaper outlets.

By using 12C framework, the market potentiality will be evaluated through different perspective.