Nike Economic Factors Analysis

The Economic factors are determinants of an economy’s performance that directly impacts a company. These factors include inflation rates, interest rates, exchange rates and economic growth. These affect how businesses operate and make decisions. The economic climate in the country is of major concern to every company as it has impacts on the business and consumer spending. For example, the exchange rates can affect the costs of the supply and price of imported goods and exporting goods in an economy. Also the rise in inflation rates of an economy can affect the way a company prices their products and services.

The biggest threat that Nike would face economically is from an economic recession. A recession would have an effect on Nikes growth

Some of these aspects are cultural trends, demographics, population analytics, age distribution, employment levels, income statistics, cultural and social conventions. High trends in social factors affect the demand for a company’s product and how that company operates. For example increase in the health consciousness may affect the demand of a company’s product. As the average obesity in adults is 60.8% and children of 31.1%, people are becoming more health conscious and there is an increased focus on people to keep fit. Nike has seen the benefits from this as they have been an increase demand for fitness and sports related shoes and

The largest among Nikes objectives for the next ten years will be the women’s athletic market. Nike will feature new print and television advertising, taking a different look at women and sports and featuring everyday women.

Technological:

The Technological factors refer to the rate of new intentions and development, changes in information and mobile technology, changes in internet and e-commerce or even mobile commerce, and government spending on research. There is often a tendency to focus Technological developments on digital and internet-related areas, but it should also include materials development and new methods of manufacture, distribution and logistics.

With technology improving Nike has to keep up to date as the world develops more and more with its technology. Nike has been able to maintain its name in the market place with the use of social media to increase their brand awareness. By using social media it has been easier for Nike to promote the products that they have and making the public more aware of these products. There has been a growth in the market for online shopping and promoting their products online using media and apps. The increase in ipads and smartphones has made buying online easier and more accessible.