PESTLE Analysis of Nike | Nike PESTLE

by Shamsul
PESTLE Analysis of Nike
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PESTLE Analysis of Nike | Nike PESTLE


Nike, Inc. is an American-based international corporation. They provide functional and stylish sportswear. It was founded in 1964 and aims to deliver innovation and inspiration to every athlete. There is no doubt that it is the largest sportswear and accessory company in the world. Nike has established a strong position in the competitive market. Today, we will discuss the PESTLE Analysis of Nike, the potential future, and position of Nike through a business analysis tool PESTLE. It gives a strong picture of different factors like political, economic, social, technological, legal, and environmental. Keep scrolling to find out these factors right now.


 PESTLE Analysis of Nike | Nike PESTLE

Political Factors:

These factors provide real support and assistance to a company. Political factors can make or break the reputation of any company. In this process, the most important factor is that how you produce your goods. Moreover, it also depends on your sales and sales strategy. To be very honest, it looks a little insignificant but these factors predict your survivability. Some important political factors of Nike have given:

  • As we know that, Nike is a US-based company which is really good for the growth of the company. The American economy is stable which gives a big opportunity to companies like Nike to grow more. It features international tax agreements and low-interest rates.
  • For companies that produce and sell goods, influenced due to the changes in manufacturing laws and tax regulations.
  • Sometimes political instability makes the customs process a little difficult and reduces the supply of imports and export. As Nike is a transnational corporation, so these factors can impact the growth and development of the company.


PESTLE Analysis of Nike | Nike PESTLE

Economic Factors:

In the activewear market, Nike is a respected name. Due to this reason, the company is less susceptible to several economic factors. Here are some economic factors of Nike given:

  • A sudden market crash can create a bad impact on the company and other big companies. Economic recession can change the purchasing power of customers and they prefer more cheap products. In this situation, it is really challenging for a global company to survive. So, in these situations, Nike should focus on a decent level of quality which helps to reduce the manufacturing costs so that they can cater to the customers.
  • For a longer period of time, Nike was dependent on the different Eastern countries due to the low cost of labor. But, this process is ended which results in the higher prices of Nike’s products.
  • Nike has a wonderful opportunity to target new emerging markets in order to sell their products. This thing does not only increase its popularity but also creates various opportunities to increase its market share. They just need to improve their resources and marketing strategy in order to attract new clients.


PESTLE Analysis of Nike | Nike PESTLE

Social Factors:

It is necessary for big companies to maintain their social status which creates a good impact on the mind of users. An excellent social reputation makes you a number one brand in the world. Here are some social factors are given:

  • As the number of health-conscious people are on increase day by day and people adopting better lifestyles, so there is a maximum chance that these people will definitely buy sports apparel and products to make their lifestyle better. It creates a big opportunity for Nike.
  • Recently, Nike faces huge backlash due to its doubtful production systems. They face severe criticism over social media for its production processes.


PESTLE Analysis of Nike | Nike PESTLE

Technological Factors:

With the latest technology, a company can grow constructively and find multiple ways to expand its business. Nike can introduce innovation in different sectors such as manufacturing processes and customer service to make things better and smooth. Below, some of the technological factors are given that can affect Nike:

  • It is really easy to market new products on social media. Now, you can share the news with your audience in just a matter of seconds with the assistance of social media. Nike has excellently exploited social media for promoting their brand name and products. But don’t forget that it is a double-edged sword, so use this platform correctly and properly.
  • Nike also has an opportunity to utilize valuable data based on metrics, thanks to technological innovations that allow the company to maximize profits and reduce the risks.


PESTLE Analysis of Nike | Nike PESTLE

Legal Factors:

Some people coupled the legal factors with political factors in PEST analysis, but both are different in PESTLE analysis. There are very few legal factors that affect Nike, but we have mentioned some of the important legal factors below:

  • Like several big companies, Nike also dodges considerable amounts of tax in recent years. This kind of thing can create a big problem for the company.
  • Moreover, Nike also faces legal consequences due to its dubious marketing practices. The major issue in this problem is false discounts. These things can badly impact the company’s image and reputation in the eyes of the audience.


PESTLE Analysis of Nike | Nike PESTLE

Environmental Factors:

Due to the increasing number of health-conscious and eco-friendly people, green practices are essential for any company. There are some environmental factors that can affect Nike’s manufacturing processes:

  • There are several factories of Nike that directly harming the environment. They release a significant amount of air pollution and also polluting rivers with chemicals used in the manufacturing process.
  • But, Nike has promised to reduce its environmental waste by changing its current manufacturing practices. This thing gives peace of mind to eco-friendly people. They can catch the attention of new customers by making nature-friendly products and reducing their environmental waste.


PESTLE Analysis of Nike | Nike PESTLE


Well, this is a complete PESTLE analysis of Nike. There is no doubt that Nike is a strong player in the sportswear industry and very popular among people due to its high-quality products. In terms of profits and market reach, the company is doing really well. They just need to pay attention to its unethical manufacturing processes and pricing strategy. So, we can say that there are bundles of opportunities for Nike to get a competitive edge over its competitors in the form of revenue and growth.


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Read More:

PESTLE ANALYSIS and Its Impacts in Marketing

How to Create a Brand That Would Last For a Very Long Time

Difference Between PESTEL or PESTLE Analysis

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