Company Analysis of NIKE 2014
NIKE COMPANY ANALYSIS
Word count: 2856
Table of Contents
INTRODUCTION/ COMPANY BACKGROUND
This report examines NIKE Inc. one of the leading sports brand in the world. It uses business analysis techniques such as SWOT, PESTEL, Porter’s five forces, and Ratio analysis to analyse the business environment and performance of this company.
NIKE Inc. is one of the world’s biggest sporting brand based in Oregon USA. Founded in 1968, NIKE is the world’s biggest designer marketer and seller of athletic footwear, sports equipment, apparel, accessories and services, by sales revenue of $21.5 billion in 2012 (NIKE, 2013). With 48000 employees, NIKE’s operation cuts across different regions in the world including Canada, Asia, Latin America, Europe, and Africa. They posted revenue of $25313 million in the 2013 financial year ending May 2013, the company has enjoy growth in its revenue since 2010, and this trend is expected to continue as they leverage on top sporting events to boost their brand image (Tefris 2013).
PESTEL ANALYSIS
PESTEL (Political, Economic, Social, Technological Environment, and Legal) analysis is a business analysis technique that is used to analyse the growth potential of a company. It helps firms identify the environment in which they operate, and can firms predict future circumstances and situations by using information and data it provides (Yüksel, 2012). This report provides a PESTEL analysis of NIKE in the following paragraphs.
Political
Political environment have a huge implication on the micro and macro environment of a business, and they can significantly influence a range of business decisions (Leslie and Phillip, 2012). Political environment includes political system, government policies and other trade related regulations. Some of the political factors that can affect NIKE includes the relationship between USA (Nike’s country of origin) and other host countries where NIKE operates (for example
Word count: 2856
Table of Contents
INTRODUCTION/ COMPANY BACKGROUND
This report examines NIKE Inc. one of the leading sports brand in the world. It uses business analysis techniques such as SWOT, PESTEL, Porter’s five forces, and Ratio analysis to analyse the business environment and performance of this company.
NIKE Inc. is one of the world’s biggest sporting brand based in Oregon USA. Founded in 1968, NIKE is the world’s biggest designer marketer and seller of athletic footwear, sports equipment, apparel, accessories and services, by sales revenue of $21.5 billion in 2012 (NIKE, 2013). With 48000 employees, NIKE’s operation cuts across different regions in the world including Canada, Asia, Latin America, Europe, and Africa. They posted revenue of $25313 million in the 2013 financial year ending May 2013, the company has enjoy growth in its revenue since 2010, and this trend is expected to continue as they leverage on top sporting events to boost their brand image (Tefris 2013).
PESTEL ANALYSIS
PESTEL (Political, Economic, Social, Technological Environment, and Legal) analysis is a business analysis technique that is used to analyse the growth potential of a company. It helps firms identify the environment in which they operate, and can firms predict future circumstances and situations by using information and data it provides (Yüksel, 2012). This report provides a PESTEL analysis of NIKE in the following paragraphs.
Political
Political environment have a huge implication on the micro and macro environment of a business, and they can significantly influence a range of business decisions (Leslie and Phillip, 2012). Political environment includes political system, government policies and other trade related regulations. Some of the political factors that can affect NIKE includes the relationship between USA (Nike’s country of origin) and other host countries where NIKE operates (for example
References: Forbes (2014b) Nike Faces Tough Competition In Europe and China. [Online] available from: http://www.forbes.com/sites/greatspeculations/2014/03/04/nike-faces-tough-competition-in-europe-and-china/ [Accessed on 17th June 2014] Forbes Gotham, S. (2013) Nike 's Changing External Environment. Nike.Blogpost [Online] available from: http://philnike.blogspot.com/2013/02/nikes-external-environment.html [Accessed on 18th June 2014]. Hamilton, Leslie & Webster, Philip, (2012) The International Business Environment, Oxford University Press, 2nd Edition. Lussier, R, Kimball, D, (2014), ‘Applied Sport Management Skills’, Elms College, 2nd Edition. NIKE Inc. (2013) Annual Report and Notice of Annual Meeting. [Online] available from: http://investors.nikeinc.com/files/nike2013form10K.pdf [Accessed on 18th June 2014]. 'NIKE, Inc Porter, M. E. (2008) The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40. Singla, R Tefris. (2013) Here’s What Matters For Nike’s $56 Valuation. [Online] available from: http://www.trefis.com/stock/nke/articles/167536/heres-what-matters-for-nikes-56-valuation/2013-02-12 [Accessed on 18th June 2014]. Trefis (2011) Nike 's Opportunity in Emerging Markets Outweighs Higher Costs [Online] available from: http://www.nasdaq.com/article/nikes-opportunity-in-emerging-markets-outweighs-higher-costs-cm68544 [Accessed on 17th June 2014] Trefis Watts (2009) SWOT Analysis of the NIKE Company What Makes Nike Strong and Weak. [Online] available from: http://voices.yahoo.com/swot-analysis-nike-company-3843094.html [Accessed on 17th June 2014] Yüksel, I