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Pestel Analysis on China

In: Business and Management

Submitted By nauy
Words 1493
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Political factor:
If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers.
International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment.
In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year.
Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller of athletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's shoes — upwards of $100 a pair — cost twice as much. The new middle class "seeks Western culture," says Zhang Wanli, a social scientist at the Chinese Academy of Social Sciences. "Nike was smart because it didn't enter China selling usefulness, but selling status." Although the government might influence badly on Nike but the customer can protect this brand.
Therefore, because of the influence of the Chinese…...

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