Nike Inc. In the case of Nike Inc. As one of the major firms in the global sports shoes, apparel and equipment market, Nike Inc. To maintain its position in the athletic shoes market, Nike Inc. 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 government support for infrastructure, especially in developing countries, gives Nike more opportunities to expand its operations in these markets.
Developed markets like the United States are relatively stable, thereby proving Nike Inc. The company also has opportunities to rapidly grow by increasing its operations in high-growth developing countries. In developing countries, Nike has opportunities to tap consumers with increasing individual wealth. Also, the company has opportunities to develop safer products and use marketing campaigns that highlight the safety of its sports shoes, equipment and apparel.Process: The Adidas Ultra Boost AKA "The World's Best Running Shoe"
Nike can also adopt new product development strategies to address needs for products for leisure activities. The following technological external factors affect Nike Inc. Rapid technological obsolescence also threatens Nike by putting pressure on the company to increase its product development efforts.
Nonetheless, this external factor provides opportunities for Nike to integrate advanced technologies in its products. In relation, the company has opportunities to integrate mobile technologies in its products to capture consumers who frequently use mobile technologies, such as mobile apps and online tools.
In the case of Nike and its sports shoes, apparel and equipment, the following ecological external factors are notable:. Expanding environmental law creates opportunities for Nike to improve its environmental and sustainability programs, which are currently recognized as among the best in the industry. 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 increasing sustainability strategies of firms threaten Nike by imposing more pressure for increased sustainability efforts throughout the industry. Nonetheless, this external factor provides the opportunity for Nike to further improve its sustainability standing.
Legal terms influence businesses like Nike.Demographic macroenvironmental factors such as age affect the clothing industry. Macroenvironmental factors affecting the clothing industry are those which lie outside small companies and their competitors. Business owners have less control of these external factors, and their impact in changing them is minimal. Instead, small companies must adapt to these macroenvironmental factors, which include consumer characteristics, technology, government influence and the economy.
The way small companies adapt to macroenvironmental factors determines both their ability to differentiate themselves from key competitors and overall success. Consumer microenvironmental factors include cultures, norms, lifestyle, demographics and population changes. These factors affect the clothing industry in different ways.
For example, a small clothing manufacturer needs to create styles that appeal to those of different cultures, especially if those cultural groups represent large enough segments of its market.
Contrarily, clothing manufacturers, wholesalers and retailers avoid creating too many clothing items that fall outside the norms of society, such as styles worn years ago. An aging population may increase the demand for larger jeans and pants sizes, such as relaxed or looser-fitting styles.
Generally, many people become more sedentary when they get into their 40s and 50s. Consumers' waistlines expand so they need larger sizes and more room for comfort. Also, decreases in birth rates in some areas will lower the demand for baby clothes. Technological microenvironmental factors affecting the clothing industry include availability of resources, demand and production.
For example, the scarcity of certain materials, such as leather, may force retail and wholesale clothing companies to sell more faux or substitute leather products.
Retailers may increase the prices of cotton clothing if they encounter shortages of this raw material, as they must pay their manufacturers more. The introduction of new clothing styles by a competitor can shift demand away from older fashions. Hence, a small clothing manufacturer may need to discontinue certain clothing lines and produce new ones that meet the needs of consumers.
Moreover, clothing companies may add more advanced equipment in their plants like robots, which may force companies to fire some workers. A number of legal and political macroenvironmental factors affect small businesses in the clothing industry. The industry has repeatedly been affected by issues such as workers' rights and child labor laws.On the heels of a choppy with its own share of market turbulence, a lackluster holiday shopping season and generally slower retail traffic and sales, leading footwear company execs are certainly hoping for brighter days ahead.
The markets — spurred and spooked by geopolitical factors, currency shifts, the price of commodities and a host of other variables — are in constant flux. Awareness is often the best starting point. But, insiders warn that the stretch of unseasonably warm weather that occurred from September through Decemberin many parts of the U. Shoe companies are now grappling with record high levels of seasonal inventory and have resorted to unprecedented discounting and promotional activity to get rid of it.
Almost every company with an international presence think Nike Inc. During the Thanksgiving and Black Friday weekend, the shift from brick-and-mortar spending to online shopping was palpable. Research shows that the pattern will continue and even accelerate in One study found that mobile shopping alone could grow by nearly 70 percent this year.
Not only are consumers changing where and how they shop, their tastes in what they buy has evolved.
Shoe companies will have to figure out how to compete in this evolving consumer landscape. One report by Cowen and Co. Lower unemployment and fuel prices should also bolster retail sales inalthough Cowen and Co. Walmart, Ross Stores Inc. Sheena Butler-Young. Close Menu. Access exclusive content Subscribe Today! Follow Us. Please fill out this field with valid email address.
Sign Up. Close menu.PEST Analysis. By measuring these factors it becomes easier to determine market attractiveness as well as the potential of the business and ability to access the industry. Athletic footwear. Funnel Approach. A few foreign countries now have policies in place that prohibit full ownership of retail stores.
Although labor, gas and interest rates are increasing, there is greater opportunity for global growth as well as growth in athletic participation. Due to the high rivalry and brand loyalty between Under Armour and Nike Inc. This is why these two companies share an attractive industry. These policies hold a threat to internationalization - Currency exposure risk - Competitive tax system internationally.
Opportunities - Quality over price is valued in the footwear industry - Average lifespan in the United States is 78 and due to the economic crisis, people over 68, are worth 47 times more than people under the age of Opportunities - Increase in the use of commerce conducted electronically - Increase in the use of mobile commerce - Social media systems becoming increasingly popular for marketing to consumers - New technologies emerging that allow corporations to become more energy efficient as well as reduce manufacturing costs Threats.Our website is made possible by displaying online advertisements to our visitors.
Please consider supporting us by disabling your ad blocker. Despite being one of the largest sport apparel and accessory companies in existence, Nike has to keep a high guard in its extremely competitive market.
To us, this may seem insignificant, but Political factors decide the survivability of an organization. For Nike, some of these are:. Nike sells a well-respected medium range product, so they are less vulnerable to economic factors than others, but nevertheless here are some of the Economic variables:.
Public Relations has never been more relevant than today. Technology gives companies the ability to innovate in so many different ways. From interacting with customers to designing products, technology provides value to organizations just like Nike. Here are some of the Technological factors affecting it:. Environmental issues are of ever-growing importance.
Of course, there are only a few factors which affect Nike with regard to this, but they are worth stating:. 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.
Do you know of any other factors which might be relevant to Nike? Be sure to leave them in a comment down below. Thomas Bush is an English-born writer, entrepreneur, and fitness enthusiast.
Having freelanced for years, Thomas has appeared on various online publications numerous times, but recently set up his own website 'TalkSupplement' about the world of sports nutrition. These days, he spends his time flipping domain names, writing articles and pursuing other interesting business ventures. Ad Blocker Detected Our website is made possible by displaying online advertisements to our visitors.
PESTLE Analysis of Adidas
Next Article. Related Articles. Everyday our market is changing the way it is.The pharmaceutical industry is one of the primary industries and it is also one of the largest. It has existed for centuries but has seen major progress only in the last few decades.
This is largely due to the development of the various sciences. But at the same time, there are also factors that hamper the growth of this industry.
This PESTLE analysis of the pharmaceutical industry will look into the current status of the pharmaceutical industry, its different driving factors, and the effects they have on the industry. The primary fields that will be studied are political, economic, socio-cultural, technological, legal, and environmental.
Hopefully, with the help of this analysis you will have a better understanding of the progress and current condition of the pharmaceutical industry. The following political factors affect the pharmaceutical industry. All countries have a certain framework regarding the pharmaceutical industry. This includes safety standards, certifications, and drug-related laws. While in many countries these laws are not so strict, in not so developed countries they are quite harsh and do not allow the pharmaceutical industry to progress.
The pharmaceutical industry consists of various large corporations. And the global level of their distribution and marketing along with the regulatory framework makes it difficult for newcomers to enter the market. This shows strict competition within the market as well as provides a larger industry persona since most of the brands are established.
Many countries along with the United States are creating laws that place strict control on pricing of drugs. This has caused hindrance to the growth of the industry. However, there are also populist demands of cheaper drugs for lower classes of society.
Many pharmaceutical companies are facing major losses, and further fall in prices may force them to quit. Please find the major economic factors affect pharmaceutical industry. The general trend of household spending is definitely increasing and they spend a large part of it towards the pharmaceutical industry.
Purchase of drugs has become more common than ever and one of the primary causes is that people can now own drugs that were previously of a high price. As a result of this people are purchasing these drugs and providing further growth to the industry. We expect the release of more such drugs in the near future.
As the drug prices are slashed by governmental regulations, pharmaceutical companies are having to cut down on their production cost. This is a major downtrend for the condition of the pharmaceutical industry. However, it is expected that the global economy will flourish in the coming decade allowing these companies to expand and take back the market. The following three social factors affect pharmaceutical industry.
The current population features people of older generation in a large number. This means the number of sick people is higher than ever. This has placed a high amount of pressure on the pharmaceutical industry leading to its growth.
Shoe Zone Plc PESTEL & Environment Analysis
However, when this particular generation passes away there is expected to be a downfall in the demand of various drugs. Obesity is a larger factor than ever before. The last few decades witnessed rapid changes in the global diet style, and this has led to obesity in a large part of the population. In most developed countries obesity is almost an epidemic, and this will soon be the condition in developing countries as well.
The rapid growth in obesity rates has led to the requirement for many drugs and allowed those particular sectors of the pharmaceutical industry to grow. While this may lead to lesser requirement of doctors and general physicians, people are now consuming more drugs than ever. However, exercising and fitness trends are also leading to lesser requirement for drugs as they lead to healthier lifestyle without the need for drugs.Changes in the macro-environment factors can have a direct impact on not only the Shoe Zone Plc but also can impact other players in the Retail.
The macro-environment factors can impact the Porter Five Forces that shape strategy and competitive landscape. Article continues after ad. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Shoe Zone Plc if it is situated in unstable political environment. Spanish oil giant Repsol had to face a similar instance.
It started an above average profitability operations in Argentina and made strong returns in years. But the business was later expropriated by the Left Wing government. Political factors play a significant role in determining the factors that can impact Shoe Zone Plc's long term profitability in a certain country or market.
Shoe Zone Plc is operating in Retail in more than dozen countries and expose itself to different types of political environment and political system risks.
The achieve success in such a dynamic Retail industry across various countries is to diversify the systematic risks of political environment. Shoe Zone Plc can closely analyze the following factors before entering or investing in a certain market. The Macro environment factors such as — inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy.
While micro environment factors such as competition norms impact the competitive advantage of the firm. Shared beliefs and attitudes of the population play a great role in how marketers at Shoe Zone Plc will understand the customers of a given market and how they design the marketing message for Retail industry consumers. Technology is fast disrupting various industries across the board. Transportation industry is a good case to illustrate this point. Over the last 5 years the industry has been transforming really fast, not even giving chance to the established players to cope with the changes.
Taxi industry is now dominated by players like Uber and Lyft. A firm should not only do technological analysis of the industry but also the speed at which technology disrupts that industry.
Slow speed will give more time while fast speed of technological disruption may give a firm little time to cope and be profitable. Technology analysis involves understanding the following impacts. Different markets have different norms or environmental standards which can impact the profitability of an organization in those markets.
Even within a country often states can have different environmental laws and liability laws. For example in United States — Texas and Florida have different liability clauses in case of mishaps or environmental disaster.
Similarly a lot of European countries give healthy tax breaks to companies that operate in the renewable sector. Before entering new markets or starting a new business in existing market the firm should carefully evaluate the environmental standards that are required to operate in those markets. Some of the environmental factors that a firm should consider beforehand are.
In number of countries, the legal framework and institutions are not robust enough to protect the intellectual property rights of an organization. Some of the legal factors that Shoe Zone Plc leadership should consider while entering a new market are.
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