Pestle and Swot Analysis of Nike 2018

By: Jonathan Kush

Nike is an American company that is engaged in the design, manufacture and marketing of apparel, footwear, equipment, services and accessories. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Considering the US footwear market, Nike accounts for 21.1% market share with major competitor adidas having 4.7% according to Statista (Statista 2018d). Various external factors have affected the growth of Nike, by using a pestle we analyze how political factors such as the US-China trade war and president Trump’s order to pull the US out of the Trans-pacific partnership trade deal has affected its growth, economic factors like low employment rate in the US can boost growth and social trends affect Nike’s growth while realizing major threats and opportunities. Using a porters five forces analysis, we identify points at which competitions has severely affected Nike’s growth.

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