PESTEL & Porter's Five Forces analysis

NIKE: PESTEL & Porter's Five Forces Analysis Name Institutional affiliation NIKE: PESTEL & Porter's Five Forces Analysis Introduction Nike Inc. was founded as a Japanese shoe importer and by 2015, the corporation had grown to be the world’s largest manufacturer and seller of athletic footwear (Nike, 2016). The company now produces athletic footwear, clothing, accessories, and sports equipment for markets in the North and South America, Middle East, Europe, Asia Pacific, and Africa (Hanrahan, 2014). The mission of the company is to inspire and innovate every athlete in the world. The products are available in over twenty thousand retail stores, including those operated by Nike. Resultantly, the company is the most competitive sports and fitness in the world. In the recent years, Nike has devoted much of its resources to enhancing its business, such as developing the information systems, logistics, and the supply chain management. Also, the company has improved in the marketing and production of cutting-edge running shoe design. Additionally, Nike has ventured in creating a balance between the creative and business ideas, through a new financial and managerial approach to enhance growth. Nike marketing uses popular athletes to sponsor their products that appeal to a wide audience, such as the Air Jordan brand that is popular among young adults (Ros, 2011). The company continues to face significant competition from other sports organizations, such as Adidas and Under Amour (Dogiamis & Vijayashanker, 2009). A market analysis using PESTEL and the Porters Five Factors offers an opportunity to understand the position of the company in the market. PESTEL Analysis The PESTEL analysis focuses on the external factors that affect how business is carried out in an organization. The PESTLE refers to the Political, Economic, Social, Technology, Legal, and Environmental factors (Lynch, 2006). Political Factors Nike is the number one sportswear in the world, with its profits, turnover, marketing, sponsorship, and advertising surpassing all other competitors. Additionally, it is considered to be leading into the labor practice initiatives. According to Nike’s code of conduct, the company seeks to not only do what is required, but whenever possible, as it is expected of a leader (Hanrahan, 2014). Despite various claims by some nations that Nike has exploited its workers due to low wages, the company maintain that it upholds ethical considerations in the allocation of resources and work, to improve their relations with subcontractors who are involved in the production. Most of the products are produced in Indonesia, Vietnam, and Thailand due to its low labor costs, although the countries are often faced with political unrest. Despite this, the company is fortunate about the policies implemented by the US government that will foster its growth in business. The company enjoys low-interest rates and stable currency conditions, as well as competitive taxes. The growth of the company worldwide is challenged by tariffs and non-tariffs that are constantly changing within the countries. Economic Factors The company has the responsibility of being a major world manufacturer of sportswear and apparel that generate over US$18.6 billion acco...