Nike Case Analysis
Nike’s Global Women’s Fitness Business: Driving Strategic Integration | [Your Name] |
Introduction and Background
In 2006, the American footwear, apparel and equipment manufacturing giant announced a major corporate reorganization that would switch the company’s attention from a product orientation to a category-driven approach.
A product orientation approach, which was previously effective for Nike, centers all the business activities on continually innovating, improving and refining its products while it is under the assumption that customers simply want the best possible quality for their money. But due to changing circumstances and to pursue customer loyalty, Nike adapted the category driven approach which is derived from customer usage and purchase patterns. Post- internal and external analysis Nike concluded that there are primarily six major business areas that account for 90 percent of the company’s growth such as running, men’s training, basketball, soccer, women’s fitness and sportswear. Nike decided to incorporate a new organizational structure that would uproot Nike’s old formal reporting relationships, procedures, controls, authority and decisions making processes and implement a new one that would focus on micro-segmentation as the strategic steps to take in the future.
Problem Identification
Nike has grown into a titan in the sports industry from a small startup between Bill Bowerman and Phil Knight. Nike brought in $15 Billion in revenues in 2006 grown 9% from the previous year. It also supplies the world’s greatest sporting events, it is partnered with top profile athletes and has achieved several other milestones. The problem that Nike faces is firstly to move away from a male dominated culture and generate momentum from an almost non-existent women’s footwear and apparel market. The question I am going to analyze is “What will it take to make the category-driven approach successful?”
Analysis
Nike intends to pursue to develop a
Introduction and Background
In 2006, the American footwear, apparel and equipment manufacturing giant announced a major corporate reorganization that would switch the company’s attention from a product orientation to a category-driven approach.
A product orientation approach, which was previously effective for Nike, centers all the business activities on continually innovating, improving and refining its products while it is under the assumption that customers simply want the best possible quality for their money. But due to changing circumstances and to pursue customer loyalty, Nike adapted the category driven approach which is derived from customer usage and purchase patterns. Post- internal and external analysis Nike concluded that there are primarily six major business areas that account for 90 percent of the company’s growth such as running, men’s training, basketball, soccer, women’s fitness and sportswear. Nike decided to incorporate a new organizational structure that would uproot Nike’s old formal reporting relationships, procedures, controls, authority and decisions making processes and implement a new one that would focus on micro-segmentation as the strategic steps to take in the future.
Problem Identification
Nike has grown into a titan in the sports industry from a small startup between Bill Bowerman and Phil Knight. Nike brought in $15 Billion in revenues in 2006 grown 9% from the previous year. It also supplies the world’s greatest sporting events, it is partnered with top profile athletes and has achieved several other milestones. The problem that Nike faces is firstly to move away from a male dominated culture and generate momentum from an almost non-existent women’s footwear and apparel market. The question I am going to analyze is “What will it take to make the category-driven approach successful?”
Analysis
Nike intends to pursue to develop a