Business Case Studies, Innovation and New Product Development Case Study, Nike's New Discipline,Balancing Creativity and Business Sense

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Case Title:

Nike's New Discipline: Balancing Creativity and Business Sense

Publication Year : 2004

Authors: Uma Shanker Shastry, T Phani Madhav

Industry: Sports and Sports Related

Region:USA

Case Code: IPD0009

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Beaverton, Oregon-based Nike Inc, has achieved what most brands in the world have failed. As an athletic footwear and sports apparel manufacturer, Nike's brand has spread through generations of sport and leisure activity. Over the years, the brand had become synonymous with sport celebrities like Michael Jordan and Tiger Woods. Nike's belief in a performance shoe backed by high-value advertising enabled it to gain an edge over competitors like Adidas and Reebok. But the company had its share of ups and downs due to supply chain failure and outmoded designs. Added to this were the allegations of labour exploitation in its Asian factories. But the company rebutted its critics by emerging as the leader in the athletic footwear segment. In the fiscal year that ended May 31 st 2004, the company posted a 15% rise in sales reaching $12.3 billion.

Pedagogical Objectives:

  • To discuss Nike's marketing and advertising practices in the light of customers’ fast changing preferences
  • To discuss how the company has, over the years, produced some of the best shoe technologies.

Keywords : Nike; Onitsuka Tiger Company; Blue Ribbon Sports; Bill Bowerman and Phil Knight; Jogging wave; Performance shoes; Sports celebrities; Corporate Strategies Case Study; Adidas and soccer; Acquisitions; R&D centre (research and development); Air Jordan; The 'just do it' campaign; Footlocker

Contents:

  • Nike – a new beginning
  • Nike: a brief history
  • Nike's R&D
  • The 'just do it' campaign

  • The slide in the late 1990s
  • The supply chain fiasco
  • Future soccer?

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