With its ‘deep pocket’ of finances, Nike has the resources to chase after small emerging markets in which they could sell products. 3. SOCIAL FACTORS There are different social trends that could have a lasting impact on Nike. As a company surrounded by a lot of hype and attention, PAGE 13
Nike could benefit from the recent concept of sneaker collection. This trend that developed around social media blends photography, fashion and picture sharing. Three hot subjects all at once, this social trend actually represent a niche market for the company as Nike is one of the most beloved brand for Sneakerheads, thanks to the popularity and longevity of the lines Air Max and Air Jordan. During the 2000’s, people all over the world started to become more and more health conscious. In addition to good nutrition, people increasingly subscribe to gyms or go out for long runs. This surge in sporting activity is not only healthy but also very profitable for a company like Nike. The company’s sports equipment, apparel and shoes sales are all on the rise and the boost can be mostly attributed to this social trend. It is important to note however that some social trends affects Nike’s business negatively. With the overall increase in social awareness in the United States and in Europe, the scandalous working conditions in Nike’s factories lead to the company receiving lots of criticism. Nike has been blamed for years for having been using child labor in their Asian factories. To face the public critics, Nike vowed to better the working conditions of its factories and to treat the workers with dignity, but the conditions in which Nike’s products are manufactured is still highly debated. 4. TECHNOLOGICAL FACTORS Technologic Nike invest lots of time and money in his R&D, the firm has the biggest budget compared to his concurrent and buy a big number of patents, to not lose money they have be very good in their development. Thanks the innovation and new technology on the digital, Nike increased his development because customers used the on-line market and the presence of the brand on the social media helped them to grow. New technology affects Nike because it incorporates it in its products. Through technology it makes highly innovative products as shoe construction/ design. It can create mobile app and different PAGE 14
facilities and website from which customers can do online shopping through new digital trends. (Hanrahan, 2002) 5. LEGAL FACTORS The judicial system, consumer rights, trade treaties, and ethical codes are all legal that affect Nike. One of the serious legal related issue Nike needs to deal with is the issue of counterfeit product. Nike has to ensure to prevent fake Nike product to keep their reputation, avoid lawsuits which can increase the legal cost of the company and protect the Nike brand.
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