Nike Innovation

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Nike Inc.
Prepared by: Chuck Viasi
MBA 330 - Innovation and Technology Management
August 11, 2012

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Executive Summary
Nike, Inc. is a globally-recognized athletic sports apparel company with strong brand loyalty. The foundations of Nike’s success today were established by its Co-Founders Phil Knight and Bill Bowerman in 1972. As an athlete and a coach, their relentless pursuit of improved athletic performance instilled a competitive spirit in the culture of Nike. As such, the organization’s culture is one of the key reasons that Nike excels in this industry. We will see how the management style fosters innovation, and how the competitive spirit blended with curiosity and a constant scan of the external environment feeds the creative process. The company has become adept at integrating their knowledge into innovative approaches to improve athletic performance and connect with their customers through design and marketing. Our research on historical trends and processes within Nike indicates that the company’s core competencies are innovation and marketing; the underlying reasons the company is now the most recognized and coveted sports brand in the world. As Nike faces increased costs for materials, the company has made a strategic shift to couple sustainability principles with innovation to create a better company that can, in turn, can make a better world for all of us. Ultimately, this strengthens the company’s ability to compete globally in the future as well as positively impact society.

Executive Summary (Stoney/Jen)1
Table of Contents (Stoney/Jen)2
Nike’s Mission Statement (Jen)4
I. The Business of Nike (Jen)4
A. Historical Innovations (Isaac)4
B. Portfolio of Products (Isaac)5
II. Product Life Cycle (Isaac)5
III. Business Model (Isaac)6
IV. SWOT (Stoney)7
A. Strengths (Stoney)7
i. Strong Capitalization (Stoney)7
ii. Globally Positioned (Stoney)7
iii. Strong Brand Recognition (Stoney)8
iv. Solid Barriers to Entry (Stoney)9
v. Innovation (Stoney)9
B. Weaknesses (Stoney)9
i. Outsourced Manufacturing (Stoney)9
C. Opportunities (Stoney)9
i. Professional Sports Market (Stoney)9
D. Threats (Stoney10
i. Severe Competition (Stoney/Jen for Adidas)10
ii. Global Economy (Stoney)11
E. How do Nike’s Strengths Reinforce Nike’s Opportunities? (Stoney)11
F. How do Nike’s Weaknesses Relate to Threats? (Stoney)12
V. Nike’s Value Chain (Stoney)12
A. Make (Stoney)12
B. Move (Stoney)12
C. Sell (Stoney)12
D. Use (Stoney)13
E. Reuse (Stoney)13
F. Plan (Stoney)13
G. Design (Stoney)14
VI. Porter’s 5 Competitive Forces (Stoney)15
VII. Organization (Jen)16
A. How the Culture Supports Innovation and Success (Jen)16
B. Org. Structure for Optimal Alignment with Customer Markets (Jen)17
C. Breaking into New Sports with Independent Teams (Jen)18
VIII. Innovation Process (Jen)18
A. Innovation Kitchen and Sources of Inspiration (Jen)18
i. Athletes (Jen)19
ii. Customers: Lifestyle Trends (Jen)20
iii. Deep Dives (Jen)21
iv. Art, Artists and Buildings (Jen)21
B. Experts, Incubation and Collaborations (Jen)22
IX. From Idea to Commercial Product (Jen)22
X. Product Introduction to the Market (Jen)24
A. Marketing Strategy (Jen)24
B. Event Pacing and Limited Edition Products (Jen)25
XI. Integrated Strategy: Sustainability and Innovation (Jen)26
A. Nike and China (Isaac)26
B. GreenXchange, Considered Design, Considered Design Index (Jen)27
C. Impact on Corporate Goals and Strategy (Jen)28
XII. Conclusion (Stoney/Jen)28

References29

Nike’s Mission Statement:
To bring inspiration and innovation to every athlete* in the world. *"If you have a body, you are an athlete."
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I. The Business of the Company
Nike (NYSE: NKE) makes high...
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