Remote External Environment

1164 Words5 Pages
NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly-owned NIKE, Inc. subsidiaries include Converse Inc., which designs, markets and distributes athletic lifestyle footwear, apparel and accessories and Hurley International LLC, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories (About Nike,Inc,2013). Remote External Environment Economic The most important economic factors that affect Nike are factors that affect the consumer’s power to purchase. These economic factors include inflation, business cycles unemployment rates, interest rates and income. When there are changes in the for mentioned economic variables there is impact on the marketplace. These economic variables cannot be controlled. Social Consumers outlook towards their diet and health have changed over the yeqrs.. As a result there has been increase in the number of people joining fitness clubs and a increases demand of sports shoes, apparel and equipment. Nike has barrage of advertising that targets younger athletes. The number of women collegiate athletes have increased from a few thousand in the 1960’s to almost one million today. Political “Nike’s international operations are subject to the usual risks of doing business abroad, such as possible revaluation of currencies, export duties, quotas, restrictions on the transfer of funds and, in certain parts of the world, political instability. Nike’s products manufactured overseas and imported into the United States and other countries are subject to customs duties collected by customs authorities. Customs information submitted by Nike is routinely subject to review by customs authorities” (Nike, Inc,1996 10k report)
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