Nike Business Strategy

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Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange

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M-Prize winner
This story is one of ten winning entries in the Long-Term Capitalism Challenge, the third and final leg of the Harvard Business Review / McKinsey M Prize for Management Innovation.

Story:

Nike’s Gameplan for Growth that’s Good for All
by Lorrie Vogel - General Manager of Considered Design at Nike Inc. Co-Authored by Agata Ramallo Garcia October 17, 2012 at 1:29pm

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2 Ratings:

Overall

4

Innovative

4

Detail

Summary
Innovation is a cornerstone of the Nike brand. Our company was founded by two visionaries, Bill Bowerman and Phil Knight, who set out to reinvent athletic footwear. Over the past decade, our drive to design and produce better, faster, lighter products has evolved into an even more ambitious agenda – to embed long term sustainability into our business. This broader vision calls for new approaches to design, management, partnership and new tools and metrics to support integration and adoption throughout Nike. Many of Nike’s

http://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all

21/02/2013

Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange

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management innovations for sustainable growth started internally, with the Corporate Responsibility and Considered Design Teams. As internal efforts took hold, the focus expanded externally. Nike is now reinventing its supplier, industry and business relationships. It is leading industry efforts for systemic change and pursuing an agenda of truly disruptive innovation. Nike Dare to Dream video: http://vimeo.com/11680452

Moonshot(s)
• Develop holistic performance measures • Make direction-setting bottom-up and outside-in • Retool management for an open world

Context
NIKE, Inc. based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly-owned NIKE subsidiaries include Cole Haan, which designs, markets and distributes luxury shoes, handbags, accessories and coats; Converse Inc., which designs, markets and distributes athletic footwear, apparel and accessories; Hurley International LLC, which designs, markets and distributes action sports and youth lifestyle footwear, apparel and accessories; and Umbro International Limited, which designs, distributes and licenses athletic and casual footwear, apparel and equipment, primarily for global football (soccer). In 2011, NIKE Inc. earned $20.9 billion in revenues. NIKE Brand Footwear revenues in 2011 represented 55% of total NIKE, Inc revenues, followed by NIKE Brand apparel with 26%, and 5% for NIKE Brand equipment. Approximately 36% of NIKE, Inc. revenues were derived in North America, while the remainder are from across the globe.

http://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all

21/02/2013

Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange

Page 3 of 29

http://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all

21/02/2013

Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange

Page 4 of 29

After decades of phenomenal growth and becoming one of the world’s top brands (Interbrand 2010), Nike intentionally shifted its strategy to integrate sustainability as a vehicle for growth. We have come a long way, from our association with the discontent of globalization in the late1990s (and subsequently establishing one of the first corporate responsibility (CR) departments), to setting the bar in embedding sustainability into business practice. We no longer view sustainability as option. Rather it is a business imperative, an innovation opportunity and a potential...
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