-The main countries that Nike sell their products in are
U.S.A, the UK and European countries such as France and Germany, these all have stable political environments where there is a democracy.
-Nike has to be aware of pressure groups who disagree with aspects of the business such as setting up factories in underdeveloped countries and using certain leathers for trainers.
-Customer research so Nike knows how much and
how often the customer buys a product and whether delivering it would be more convenient.
They also need to look at how much people are using online shopping, if there are using it a lot then Nike must invest more in it.
- When advertising they need to consider the political and religious featues of each country for example showing too much skin.
-They have to consider the climate and terrain of the country for example a cold country like Iceland would not buy as many keep cool clothing products. Economical
In economy, the biggest threat for Nike would be economic recession. During recession, Nike’s growth will be adversely affected. The US economy is experiencing a downturn right now. Consumer purchases are slowing down. Currently, Nike's feeling the pinch of the economic recession. The Asian economic crisis also affects Nike since its goods are manufactured in Asia. The labor costs and material prices are going up.
Nike need to be aware of which technology can make their products the quickest, cheapest and most efficiently.
Nike could make a huge profit from internet sales Technology in advertisements http://www.managementparadise.com/forum s/principles-management-p-o-m/208704pest-analysis-nike.html
• Product-Nike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys, shorts, base layers etc. for a wide range of sports including track & field, baseball, ice hockey, tennis,
Association football, lacrosse, basketball and cricket.
• Price- The type of good that will be marketed is going to affect the price of a product. Nike uses vertical integration in pricing wherein they own participants at differing channel levels or engage in more than one channel level operations. This is also an attempt to control costs and influence pricing practices. Nike’s pricing is designed to be competitive to the other fashion shoe retailers. The pricing is based on the basis of premium segment as target customers. Nike as a brand commands high premiums.
Nike’s pricing strategy makes use of vertical integration in pricing wherein they own participants at differing channel levels or take part in more than one channel level operations. This can control costs and influence product pricing
• Place- Nike sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries around the world. In the international markets, Nike sells its products through independent distributors, licensees, and subsidiaries.…