External factors affecting nike

Factors Related to Drugs: Lipid water solubility Lipid water solubility coefficient is the ratio of dissolution of drug in lipid as compared to water. Greater the lipid water solubility coefficient, more is the lipid solubility of the drug and greater is the absorption.

External factors affecting nike

It shows how important economic forces are in the context of international business. Apart from it, economic fluctuations also cause losses.

A fluctuating currency is also not a very healthy sign for international brands. Most of them are not realizing sufficient profits because of a stronger dollar since the recession.

Your Employment Exchange Depot

The social forces are equally important for businesses trying to make it big in the External factors affecting nike markets. From market to market, the cultural and social structure can be vastly different.

For example the Western markets differ a lot from the Eastern markets mainly for their different cultures and societies. Still, there are several trends that have a global influence. The growth in athleisure is a similar trend.

People are looking for products that despite being athletic are stylish and fashionable. The athleisure market might be growing crowded but still Nike holds its own valuable position in this market. Olympics season remains highly important and profitable for Nike and competing brands. The sports frenzy is at a height in this season and sports fans buy more of athletic products.

Similarly, culture is an important factor and brands may be required to alter their product styles to gain popularity in the overseas markets. Brands also do several other things to gain popularity. Now, if Nike uses a different ad in US and another one in China then it is because of the cultural differences.

Culture also affects marketing and marketing expenses. Social media is one great example how technology can affect businesses. However, it is not just marketing, production and distribution of products aew also affected by technology. Apart from it, inventory management and sourcing are all affected by the type of technology a brand uses.

Nike has mostly outsourced its production to external suppliers. Still, in other areas like inventory and distribution, its performance is affected by the use of technology. In marketing too, technology is playing a bigger and important role.

Social media has opened an all new channel to access and engage customers. On Facebook, Nike has more than 27 million followers which is just a reflection of its global popularity. As environmental consciousness around the world has grown, the impact of environmental factors on business performance and profitability has also risen.

Sustainability has become a major and one of the central trends in the business world. More and more brands are focusing on reducing their environmental impact and doing business sustainably.

In past, Nike faced several protests over its environmental impact which was mainly due to the bad environmental practices by its suppliers. However, overtime Nike has managed a lot of this pressure and has framed policies making it mandatory for its suppliers to be environment friendly.

Now, sustainability is linked to innovation and overall strategy at Nike. Governments around the world have grown more and more conscious regarding environment change.

They are framing policies that favor the environment friendly brands and businesses.

External factors affecting nike

More environment friendly business can translate to tax subsidies and other major benefits including customer loyalty.

So, you see how major a force the environment and sustainability have become in the context of business. It is for this reason that brands are focused on going green. Law is another major force affecting the businesses around the world. Businesses are expected to comply with all the important laws in their sector and be ethical.

However, not all markets have very business friendly laws. In the western markets businesses might find more friendly laws. However, in Asian countries the Red Tape and local laws are still a major hindrance to profitable operation.

It may take time before countries like India and China have amended their laws to invite more of foreign business brands. Apart from it there are labor laws and product quality related laws which also differ from market to market and have an impact on the bottom line.

In the past Nike has faced several lawsuits related to labor abuse and wages.

External factors affecting nike

Worker safety is also an important issue that has troubled Nike in the past.Despite the increasing attention Global Marketing Strategy (GMS) is receiving in the academic literature, researchers have paid relatively little attention to whether markets can be segmented cross-nationally.

BibMe Free Bibliography & Citation Maker - MLA, APA, Chicago, Harvard. A PESTEL/PESTLE Analysis of Nike Inc.

Primary Sidebar

identifies key issues that the company must include in its strategic formulation. To maintain its position in the athletic shoes market, Nike Inc., must address the opportunities and threats based on the external factors that shape the . These external environmental factors can add in a risk factor which can lead to a major loss in business.

These factors can change the entire results and hence, companies should be able to deal with both local as well as international political outcomes. Example Political Factors Affecting Nike. Conducting a macro environment analysis, a. Other factors we took into consideration included: the size of the CMO's brand, the breadth of their role and responsibilities, their effect on the marketing and advertising industry beyond their.

Vol.7, No.3, May, Mathematical and Natural Sciences. Study on Bilinear Scheme and Application to Three-dimensional Convective Equation (Itaru Hataue and Yosuke Matsuda).

Marketing Management by Philip Kotler (11Th Edition) |authorSTREAM