Nike: Companies Fighting Climate Change in 2023 Harvard Case Solution & Analysis

Nike: Companies Fighting Climate Change in 2023 Case Study Analysis


Nike Inc., a renowned American footwear brand, was formerly called Blue Ribbon Sports. Its headquarters are located in Beaverton, Oregon. 1964 marks the establishment of Blue Ribbon Sports by Bill Bowerman. The name Nike was awarded in 1978 and went public after two years. It covers the entire series of footwear and is involved in designs, manufacturing, development, accessories, etc. It has had a loyal customer base and a strong market presence eversince its establishment. It is the largest manufacturer of sports shoes generating a promising revenue of $37.4 billion in the year 2020. The brand itself is a legacy and has alone a value of $32 billion it is a vast business operating almost worldwide. It deploys total assets of around $40.32 billion as of 2022. The company is moving towards the inevitable mission of ‘move to zero mission’ with the aim of going to zero carbon and waste generation by the year 2023. Nike is committed deeply to the sustainability formula employing the idea of preserving the climate and working towards it.(Allal-Chérif, 2022)

Vision Statement

‘We perceive a world where everyone is a sportsperson — joint in the pleasure of movement’

Mission Statement

‘Bringing innovation and inspiration to every athlete present on this planet.’

External Environmental Assessments

External environmental assessments enable a firm to deploy the basic standards of analysis in searching for the opportunities and threats faced by the firms and then embark upon the journey of marking new ways of innovation and techniques.(Polzin, 2020)


Manufacturing products from recycled materials can prove a great step towards advancing the business. Expansion into areas of inaccessibility can prove a potential step. Nike is mainly dealing in sports items and accessories so expansion in other liabilities like sunglasses can help broaden the business. Create products related to AR/VR. . Changes in boot and sandal inclinations can be seen as an opportunity.


There is an increased risk of market loss due to counterfeit products. There is an elevated risk of threats due to existing as well as new entrants in the market. The world economy is highly disturbed and this affects big industries the most. The counterfeit products are of low quality but cheaper so gained much of the market. This causes the greatest risk of maintaining the brand legacy which has been established over many years.  Contract producers from low-wage nations are building their own marketing skills.

PESTLE Analysis

The PESTLE Analysis determines the external environmental factor including political, economic, social, technological, legal, and environmental factors affecting the firm in one way or another.


Political factors play an important part in backing up an organization. Since Nike is a multinational brand so the condition varies from state to state. In the USA, Nike has great support with respect to low-interest rates and better international tax agreements. There are great challenges worldwide in terms of changes in government policies and taxes.


Nike covers the medium-ranged market and so is less vulnerable to fluctuations but there are pros and cons in every field. People might shift to cheaper products due to any clash or economic conditions in the country which might prove a great setback to the firm. Nike’s revenue generation is based upon low-cost labor in certain countries, and changes in the laws of those countries might render losses to the firm.


Good social interaction means greater benefit to the firm. As the world is going towards a better lifestyle and being health conscious, there are more chances of buying sports products and thus render the company in a reasonable profit.


Social media platforms can be a big opportunity in boosting the market legacy. Ike has a profound presence on social media platforms which has helped in building the brand image but this might prove dangerous as well in bringing down the image due to bad customer reviews or other factors.


Legal factors are although less in this case but should not be ignored as Nike has been one of the firms to dodge the taxation. It also faces problems due to its tricky marketing practices.


As with many factories, Nike's production line has been seriously polluting the environment whether it's air or water. Although, they are heading towards a changing policy in move to zero agenda. They are heading toward less carbon as well as less waste generation.

Porter’s Five forces

Competitive Rivalry (Strong Force)

The company is facing extreme external competition due to an increased number of rivals emerging in the market. This leads to an elevated risk of market growth and thus require active marketing andsales department as well as a strong presence on social media.

Bargaining Power of Buyers (Moderate)

The bargaining power of Nike has been greatly reduced due to low switching options and lesser substitute options available. This makes Nike a valuable brand and thus reduces market rivalry.

Bargaining Power of Suppliers (Weak)

A large number of suppliers and a high supply rate make this force a weaker one due to the fact thata high supply ratereduces the impacts of the suppliers’ activities on Nike’s business execution.

Threat of Substitute (Moderate)

Niek has unique products and has developed a brand legacy and loyal customer base over a period of many years. The threat of substitutes is greatly reduced but is moderate due to rivals present in the market.

Threat of New Entrants (Weak)

New entrants can cause a threat to the brand but this factor is greatly reduced due to high operating costs in the industry where Nike operates, brand legacy developed over a period of years, strong brand recognition, and the like........................

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