Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic footwear...

1. Marketing Audit of Nike's Strategies
Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic
footwear, apparel, equipment and accessories. Nike employs both traditional and non-traditional
distribution channels in almost 200 countries with primary market regions in the United States,
Europe, Asia Pacific, and the Americas.
Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, NikeTowns,
Cole Haan stores, and Web sites which sell Nike's sports and leisure products. Nike accounts for
33% of the global market share in the athletic footwear industry.
PEST Analysis of Nike
Nike, being an international organization, needs to focus on macro environmental factors. Macro
environmental factors comprise Political, Economics, Society, and Technology, viz, PEST Analysis.
Political Analysis
The government must create economic policies that will foster the growth of businesses. Nike,
fortunately, has been helped by the US policies which enable it to advance its products. The support
accorded to Nike by the US government, particularly in the general macroeconomic stability, low
interest rates, stable currency conditions and the international competitiveness of the tax system,
form the foundation critical to Nike's growth.
Economic Analysis
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's growth is not just affected by the local economy but also in the international economy. A weak
Euro and an Asian recession could mean weak sales for Nike. The overall results in the sales
generated by Nike in athletic footwear, however, remained stable. The global market makes up for
the variances in sales particularly between peak and lean seasons.

2. Society Analysis
People are more health conscious nowadays. Diet and health are getting more prominence.
Consequently, more and more people are joining fitness clubs. There is an accompanying demand
for fitness products particularly exercise apparel, shoes and equipment. Nike is at the forefront of
this surge in demand as people are looking for sports shoes, apparel and equipment.
Nike, however, failed to foresee problems brought about by a sweatshop expose pertaining to labor
and factory conditions at production locations in Asia. This caused bad publicity and declining sales
as society and consumers demand more socially responsible companies.
Technology Analysis
Nike uses IT in its marketing information systems very effectively. Nike applies marketing
information systems to the economics of innovation, segmentation and differentiation for most of its
businesses. Nike's leadership status owes in large part to the use of extremely valuable Information
Technology, and applying it to every aspect of the product from development to distribution.
Nike, being the world leader in the athletic footwear industry, is able to effectively harness its
environment to boost its marketing efforts. This strategy has translated into robust sales of Nike's
products.