Nike is likely to benefit in terms of United Kingdom’s political system which allows the growth of business. As per World Bank study, the current political system of the country ranks among the 6th best country to do business . This would provide the company best opportunities to cater to the lucrative market of United Kingdom. Such kind of political environment offers Nike the opportunity to expand business within the market.However, the political environment of UK is likely to come under negative scanner because of the recent exit of the country from the European Union. This policy is likely to be chalked out in the next two year which would create a negative impact on the working of the marketing strategies of the company in the long run. As the country is likely to lose access of the market in the European Union by setting up base in UK, Nike’s operations in UK would be hit with limited access to the rest of European Union markets .
The economic downturn in UK post the financial crisis in 2008 had hit the consumer demand seriously. However, in the recent years, the company has been moving back to recover some of its lost ground (Blythe, 2006). “Disposable Personal Income in the United Kingdom increased to 314110 GBP Million in the first quarter of 2016 from 293322 GBP Million in the fourth quarter of 2015” . This means that there is a potential for increase in the demand for the goods of Nike. However, the economic clouds of uncertainty following United Kingdom’s exit from EU has brought higher degree of uncertainty for the management of the economic variables of the economy. Nike is likley to face uncertain economic condition following such reduction in consumer disposable income in the target market because of this factor.