External and Internal Environments Essay Example | Topics and Well Written Essays - 1750 words - 1

External and essential Environments - Essay ExampleThere atomic number 18 mixer, economic, political, legal etc factors that whoremaster effect a rail line environment. It can be analyzed that the 2 main segments that effect the business environment of Nike are the economic and social segments. Nike is a lodge based on U.S. which is the most technologically commanding nation in the conception with a spunky level of GDP per capita of about(predicate) $49800. As the level of income of people in U.S. high they cast off a good share of spendable income that they use in acquire of consumer goods like habilitate. Nike is considered to have the largest market share of sports footwear business in U.S as visualised in 2012. The social environment of U.S. supports the business of sports space manufactured by Nike. United States has high rate of urbanization (82%) and an estimated growth of urbanization of about 1.2% from 2010 to 2015 (CIA, 2013). Most of the people in U.S. wea r western dresses as casuals. Thus sports and lifestyle shoes of Nike are most commonly used by the people in U.S. 2. Considering the five (5) forces of competition, choose the two (2) that you estimate are the most significant for the corporation you chose. Evaluate how well the fellowship has addressed these two (2) forces in the recent past. A company gets affected by various fonts of forces like threat of a overbold entrant, substitutes, existing rivalry in the attention, bargaining powers of buyers and suppliers. Among all, the most two important forces of competition that are plausibly to affect Nike are bargaining power of buyers and existing rivalry within the industry. The buyers of Nike shoes always occupy for better quality of product but at lower prices. The bargaining power of the buyers of shoe industry in U.S is very high because there are various companies that produce shoes in U.S.(Iqbal, 2013). The company has to give various offers to attract more buyers for their products. Nike shoes are athletic shoes and various types of sports companies purchase bulk of their products. The company has to offer negotiable prices to these sports companies. It is observed that Nike shoes are rich fashionable shoes that exhibit the characteristics of luxurious products thus the degree of responsiveness of the buyers to change in prices are very high. The company has various rivals in the market. Companies like Reebok, Puma, and Adidas etc also produce lifestyle and sports shoes so if the prices of Nike shoes are increased to a very high level then it can drastically reduce the bill demanded for Nike shoes. This signifies that the industry is highly competitive. Nike constantly upgrades their customized designs for lifestyle shoes so that they can pitch buyers on thousand of design and quality. In 2010 the company has introduced a new division known as Nike Digital Sports that has invented a special technology that can track the performance of a user in any type of sports. To lead in the progressing industry Nike has adopted low cost strategies like selling products online. 3. With the same two (2) forces in mind, predict what the company might do to improve its ability to address these forces in the adjoining future. Nike as a firm can attract more potential consumers by making their shoes better in quality and fashion than the other companies. Nike may diversify the range of their lifestyle shoes so that apart from the people who participate in sports, Nike shoes are also