Macro of Nike - Influences of American Politics

                        Politics

        The condition of politics influences the business of Nike Brand. For instance, if the politics is in favor of the American business, Nike can thrive. However, this is not always true in other regions .Since Nike is one of the top brands in the U.S, it can overcome all other sports wear companies in the profits, the marketing sponsorship,  advertising. In addition to being a market leader, it is also leading in the industry labor practices initiatives. Nike has been in a bad stance for a period of time due to various reasons. However, it is regarded as the best ethical company in the political climate. The bad image have been superseded by the social responsibility. This action made the brand to sustain at the top for a considerable period of time. Although it has made to the top, the company suffered from substantial amount of political pressure due to external environment such as entry mode regulations, intellectual property rights.

                        Economics

        Over the last 20 years, the demand of sporting clothing market in US has greatly increased.  However, the Nike has Adidas as a strong opponent. The fact that Nike and Adidas were the market leaders put Nike at an advantage. Adidas was a very expensive brand and not easily available. That’s why  Nike has increased demand in US.  The strong US currency made importation of the shoes from other parts of the world easier. This led to the selling of the Nike shoes at lower prices than Adidas even though both brands had the same quality. This environment gave Nike a competitive advantage over Adidas brand. During the early development of Nike Company, US was in economic stability and inflation control. In addition, the employees’ wages remained normal. This made Nike to have more profit mainly in Japan. However, The Nike faced some financial challenges around 1970.

                        Social Factors

        The diversity in social aspects are directly linked to the market potential and the customer needs. The firms paying pension to their employees cause the staff to live longer. The social environment that Nike enjoys is smooth. The athletes were the main target of this company. So as to meet their need, they try to produce affordable shoes with good quality. They try to adapt with the customer’s need and also initiate lifestyle changes through the media and advertisement. The ability to adjust with the customer’s preference leads to the increased demand. Especially in developing countries, Nike has many manufacturing factories. This fact causes Nike to struggle with transparency issues due to its vastness. However, the transparence 101 program ensure the public to be aware of the company’s action. In addition, every Nike product should be in line with the company code of conduct.