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Pestel of nike

Nikkei being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wear companies. This company is not only positioned as a market deader but also leaders in the industry labor practices initiatives. Although Nikkei had suffered bad publicity over the last decade, for various reasons, it is best placed in the political climate as an ethical company. This gives it a good public reputation, which keeps on strengthening the brand name. Authority of USA political temperatures as well as Nines commitment to industry leading transparency in matters related to social responsibility made the coma Economic Factors The increased demand for the products in the sporting clothing market in USA over the last 20 years provided a great opportunity for Nikkei Shoe Company. The only high quality brand, which existed in the US market, was Aids shoes from Germany that were very expensive and not available. This economic situation provided a very good environment for Nikkei brand to take root very quickly due to its availability and affordability.

Nikkei is usually making much profit due to its increased sales and low costs due to economies of scale it is enjoying. Nikkei enjoyed an

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economy with high national income. This boosted the demand for its products. The affordability of interest rates made the CEO of Nikkei to borrow funds which he used to expand the business. The strong US currency made importation f the shoes from Japan easy. This led to the selling of the Nikkei shoes at lower prices than Aids from Germany even though both brands had the same quality. This environment gave Nikkei a competitive advantage over Aids brand.

During early development of Nikkei Company, USA experienced very good economic stability, inflation was held in control and thus wage demands for employees remained normal. This was a great boost to Nikkei because it was able to maximize the profits by exploiting cheap labor, especially at the industry in Japan. Although the many enjoyed the benefits of good economic climate, it also suffered some finical challenges. For instance, the Coo’s decision to solve Sir’s financial problems by offering 30% of the company to the public in May 1970 failed.

Social factors pestle of Nikkei By duckier 18 Social doctors are cultural aspects that are perceived to attest the business either in a positive or negative manner. They include such factors as age structure, demographics, rural-urban migration, literacy levels, leisure activities, changing lifestyle and gender role. Those factors are linked directly to the market potential and he customer needs. For example in USA, labor pool is growing. This has led to the firms paying pension to their employees to increase because the staff is living longer. The Social environment that Nikkei enjoys is smooth.

The company targeted athletes and their need for quality affordable shoes. Change in the customers need and preferences for high quality affordable sport gear and the changing lifestyles increased the pace of product change to fit the customers’ needs. The fact that Aids shoes were expensive and hardly available in US market led the customers to rush for the BARS shoes. BARS shoes met the customer’s needs of quality, affordability and availability. Majority of Nines manufacturing takes place in developing countries where more than 500000 workers are employed.

This has made the company to struggle with transparency issues due to its vastness. However, the launch of transparency 101 program will help I ensuring that the public is made aware of everything the company is doing. The practices in each factory should be in line with the company code of conduct. Technological Factors Technological factors are trends in new technology keep on advancing on daily basis. Technology can create new products and services as well as phase out existing ones. For instance, mobile telephone created new business for GSM carriers whereas it spelled doom for other business like the postal and courier services.

For the case of Nikkei Company, money is expected to use both existing and new technology to grow its business portfolio. If well adapted, technology can considerably reduce Nine’s operational costs and thus grow its profit margins. Nikkei enjoyed technological innovations in sports wear by producing and selling sport shoes, which are ultra- supper light to athletes. Technological advancement and diffusion of technology in the manufacture of Nikkei shoes led to quality improvement and competitive advantage.

This has played a major role in benefiting the consumers and the organization returns on investment. Nikkei employ specialists in the areas of exercise psychology, engineering design, and related fields to run the business. They also utilize research committees and advisory boards made up of athletes, coaches, trainers, and other experts to consult and review designs, concepts and materials for the improvement of the products. Employee athletes and other athletes’ wear-test port wear and evaluate the design of the products and development.

Technical innovations in the design of foot wear, apparel and athletic equipment is stressed so much so that product are produced that reduce injury, enhance athletic performance and improve comfort. This is the major goal of Nikkei sport Wear Company which the CEO continually emphasized and achieved. Environmental Factors Environments I doctors include such doctors as climate and weather changes in a period. Changes in environment are difficult to determine or control and they have greater impact on businesses either directly or indirectly. Nikkei Company has put many efforts towards creating a better world.

The implementation of sustainable product innovation cycle has helped the company to advance in creating products, which are sustainable and go beyond customer satisfaction. The cycle guides their operations and that of their suppliers since environmental impact occurs at every step in Nikkei product process. The use of organic cotton plays a major role in preserving and protecting the environment and health of people living near cotton growing areas. The environmental plan exhibited by Nikkei has helped in building very throng public relations and has enticed many customers and investors.

Many American investors are environmental conscious, thus they feel strongly involved in environmental protection by investing in organizations, which they feel are ethical environmentally. Nikkei shoes are greener and more ethical as compared with other products in the USA market. Nikkei shoes are easier to recycle, and the solvent use of reduced by over 85% when compared with other brands like tiger and Aids. Legal Factors Legal factors have to do with government regulations that come into play from mime to time.

They relate to legal environment of an organization and the impacts hey impose on the performance of an organization in the market place. They include health and safety laws, consumer law, competition law, employment law, and discrimination law. Nikkei has face d a lot of legal issues in its process of growth and development. For instance, Stakeholders vs.. Nikkei case. Nikkei stakeholders sued it claiming that Nine’s executives withheld negative news and profited from the results. The allegations stated that the actions of Nikkei led to increase in stock.

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