Nike Learns How to Change: A Case Study
Nike Learns How to Change
How did Nike change the way it made decisions and introduce new products?
Nike found itself as a stagnated company with a new emergence of companies vying to take its market share so change was in Nike’s future and therefore changed the way it made decisions by bringing in managers and experts in their respective fields from outside the company to help make the changes needed. They started by purchasing specialist, niche market shoe companies like Cole Haan and Hurley so they could focus on the specialty shoes like skateboarding, golf, and soccer that were missing from their lineup. CEO Knight changed their department structure so that team focus was established to bring on development of products to match their niche market segment. In doing this the company as a whole began a revamp of processes to build diversity into decision making and create a new approach to product development. In this way Nike has regained the major market shares for their own. Nike saw and quickly reacted with a leader that saw a bigger picture and decided to use his best judgment in changing the way the design and product development teams were handled. Gone was the large room of designers that created a buzz with ideas to focus on a simple product line as a small team and create a better shoe on what was out there in the market and design comfort and performance. Cross trainer comes to my mind as the athletic shoe has evolved.
In what ways could Nike use the change techniques discussed in this chapter to find ways to improve its effectiveness and competitive advantage?
In using the team approach to design and implementation, Nike could benefit from team building techniques to facilitate cohesive interactions of group members. With this new concept the Nike employees may be able to be more aware of how a team works together and to become a unit in creativity and design.
Nike has learned from its mistakes and today still uses the team concept in not only shoe
How did Nike change the way it made decisions and introduce new products?
Nike found itself as a stagnated company with a new emergence of companies vying to take its market share so change was in Nike’s future and therefore changed the way it made decisions by bringing in managers and experts in their respective fields from outside the company to help make the changes needed. They started by purchasing specialist, niche market shoe companies like Cole Haan and Hurley so they could focus on the specialty shoes like skateboarding, golf, and soccer that were missing from their lineup. CEO Knight changed their department structure so that team focus was established to bring on development of products to match their niche market segment. In doing this the company as a whole began a revamp of processes to build diversity into decision making and create a new approach to product development. In this way Nike has regained the major market shares for their own. Nike saw and quickly reacted with a leader that saw a bigger picture and decided to use his best judgment in changing the way the design and product development teams were handled. Gone was the large room of designers that created a buzz with ideas to focus on a simple product line as a small team and create a better shoe on what was out there in the market and design comfort and performance. Cross trainer comes to my mind as the athletic shoe has evolved.
In what ways could Nike use the change techniques discussed in this chapter to find ways to improve its effectiveness and competitive advantage?
In using the team approach to design and implementation, Nike could benefit from team building techniques to facilitate cohesive interactions of group members. With this new concept the Nike employees may be able to be more aware of how a team works together and to become a unit in creativity and design.
Nike has learned from its mistakes and today still uses the team concept in not only shoe