Strategic Management

Problem-SolvingTemplate
(SMPT)

MGMT 661
Course Section _______

Student Name:
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 Table of Contents

NOTES REGARDING PRIORITY LEVEL..........................................................................................................................................3

TABLE 2.1 – ANALYSIS OF MANAGEMENT STRATEGY (OPTION 1)......................................................................................4

TABLE 2.2 – ANALYSIS OF MANAGEMENT STRATEGY (OPTION 2)......................................................................................5
TABLE 2.3 – ANALYSIS OF MANAGEMENT STRATEGY (OPTION 3)......................................................................................6

TABLE 3.1 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (FINANCE).............9
TABLE 3.2 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (HR).......................10
TABLE 3.3 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (IT).........................11
TABLE 3.4 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (OPERATIONS)...12
TABLE 3.5 - CRITICAL ISSUES IN THE CONTEXT OF RECOMMENDED STRATEGIC OPTION – (MARKETING)....13

TABLE 3B – DEVELOPMENT OF WHAT NEED TO BE ADDRESSED STATEMENTS (5 OR 6)..........................................15

(Finance; HR; IT; Operations; Marketing; Other)

TABLE 4.1 – WNTBA 1: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................18

TABLE 4.2 – WNTBA 2: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................19
TABLE 4.3 – WNTBA 3: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................20
TABLE 4.4 – WNTBA 4: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................21
TABLE 4.5 – WNTBA 5: EVALUATION OF ALTERNATIVE SOLUTIONS & RECOMMENDATION.................................22

TABLE 5 – RECOMMENDATION DETAIL # 1 #2...........................................................................................................................24

TABLE 5 – RECOMMENDATION DETAIL # 3 #4 ..........................................................................................................................25
TABLE 5 – RECOMMENDATION DETAIL # 5 #6...........................................................................................................................26

APPENDICES / OPTIONAL TABLES (P27-32)

TABLE 1.6 FIVE FORCES OF COMPETITION IN THE INDUSTRY (P33)
TABLE 1.9 THE BUSINESS ENVIRONMENT (P34)
REFERENCES

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Notes regarding priority levels

 Table 5 – Priority: HI= High (Extremely important, very critical); ME= Medium
(important but not critical); LO=Low (needs to be done but not important and/or
critical)

3
Table 2.1 – Analysis of Management Strategies

Strategy 1
Continue and Refine Digital-First DTC Model.
Briefly Identify &
Describe the This is a continuation of Nike digital-first, direct-to-consumer
Management Strategy strategy implemented by John Donahoe. It focuses on owned
online platforms, analytics, personalization, and instead of
allowing wholesalers to control it. The strategy targets to boost
margins and consumer control with the digital accounting 26
percent of the revenue in 2022 (Majumdar et al., 2024).
The approach will enable Nike to maintain better margins since
Benefits/ Advantages they will not go through intermediaries. The digital channels
generated 26 percent of the revenues in 2022. The personalization
and predictive power are enhanced by the direct connection to the
data on the consumers.

To achieve success, Nike needs a strict control over inventory,

Critical higher integration of analytics, and constant consumer interaction
Success in the digital ecosystem.
Factors

This strategy had a negative effect on the relationship with

Threats/ retailers, inventory mismatch, and brand erosion that was
Risks encountered in the case. It is risky to continue, as the engagement
of consumers will only worsen.

Not Recommended because of its adverse threats

Why is this your
recommended Strategy?

4
Table 2.2 – Analysis of Management Strategies

Strategy 2
Return to Legacy Emotional Branding and Wholesale Model.
Briefly Identify &
Describe the This strategy revives the traditional model of Nike, focusing on
Management Strategy the emotional narrative, association with athletes, and sport-based
category offense framework. It restores wholesale relations and
enhances the investment in branding and research and
development. The goal is to win back consumer loyalty and
improve brand equity following the waning preference and
deteriorated retailer relations.
Recovery of the emotional storytelling and wholesale relationships
Benefits/ Advantages reinforce brand equity and recovers the consumer loyalty. The
restoration of category offense structure enhances product
innovation and sport specific expertise. Greater cooperation with
retailers will improve market penetration and availability of
products, as well as Nike will restore competitive differentiation
and stabilize long-term revenues.

To restore emotional brand equity, it is necessary to develop

Critical strong athlete partnerships and narrate stories. It takes professional
Success leadership and knowledge of the product to revert to the sport-
Factors based category offense structure. It is important to regain
credibility among the major wholesale customers to gain strength
in distribution, and it is important to maintain long-term
investment in research and development to be able to have new
innovations and be able to be differentiated in the market.

There can be a decrease in the digital momentum. Rival

Threats/ companies such as Adidas and Puma do not stop innovating and
Risks influencer-based marketing.

Not Recommended
Why is this your
recommended Strategy? Not enough by itself, because digital infrastructure is still
strategically significant.

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Table 2.3 – Analysis of Management Strategy

Strategy 3
Build a distinct, digital-oriented brand extension without
Briefly Identify & sacrificing Nike core identity.
Describe the
Management Strategy The approach entails the development of a distinct digital-first
brand extension, which specializes in direct-to-consumer sales,
online customization, and data-driven experimentation. It will
enable Nike to use its digital strengths and shield the emotional
narrative of the core brand and wholesale relations to minimize
brand watering down and make innovation without hurting the
historical advantages.

This Strategy will enable Nike to be able to experiment digitally

Benefits/ Advantages without undermining its core brand. It exploits the available data
and personalization option to address the niche consumers,
promotes innovation and tailoring, and mitigates the risk of brand
watering down. Isolating the digital extension retains emotional
storytelling as it captures on online growth prospects.

The key success factors are effective differentiation between the

Critical core Nike brand and the digital extension, high-level integration of
Success digital platform, efficient data analytics, fast and agile products
Factors development and uniform brand governance to avoid confusion,
cannibalism, and dilution of the existing Nike emotional brand.

The main risks are a brand confusion between the core and digital
Threats/ extension of Nike, possible cannibalization between existing
Risks products, expensive investment in technology and marketing and
complexity of execution. Poor coordination will also further
undermine the relationships of the retailers, and overall brand
positioning.

The rationale behind this strategy is that it would enable Nike to

Why is this your maintain its fundamental emotional brand equity but use digital
recommended Strategy? innovation as a growth driver. The separation of experimentation
and the core brand would enable Nike to regain the trust of
retailers, minimize brand dilution and leverage digital strengths
without reinforcing the imbalance in the case.

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7
Table 2A - Strategic Analysis – Stakeholder Positions on Strategies

Stakeholder Strategic Strategic Strategic

s and their Option 1: Option 2: Option 3:
positions:

Stakeholder  Core brand

1:  Concerned  Restores returns to retail
Retailers about reduced partnerships  Concern about
wholesale  Improves sub-brand
access inventory flow competing
 Fear revenue  Rebuilds trust online
loss  Require clear
 Distrust due to channel
prior boundaries
withdrawal
 Limited
enthusiasm
Stakeholder  Appreciate  Reduced brand
2: digital  Reconnect dilution risk
convenience with brand  Clear product
Consumers  Concern about identity differentiation
loss of  Stronger needed
emotional emotional  Potential
storytelling appeal confusion if
 Lower brand poorly executed
preference
(6% drop)

Stakeholder  Support return  Opportunity for

3:  Support tech- to category innovation roles
driven offense  Less disruption
Employees innovation  Increased job to core structure
 Concerned clarity in sport
about categories
restructuring  Stronger
and layoffs alignment with
 Fear loss of Nike heritage
category
expertise

Stakeholder  Brand equity  Support risk

4:  Support higher recovery. diversification
margins from  Fears  Like controlled
Shareholders DTC dwindling digital
growth in experimentation
digital.  Concerned
 Fears lowered about additional
scalability of investment.
revenues.
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Table 2B - Strategic Analysis – Impact of Critical Issues on Strategies

Management Strategy #1 Strategy #2 Strategy #3

Strategies &
Their Critical
Issues
Finance  Initial
investment in
brand extension
 Risk
diversification
across channels

Marketing  Dual-brand
positioning
challenge
 Clear
segmentation
required
 Opportunity for
innovation
marketing

Operations  Parallel supply

chain
coordination
 Clear separation
of channels
required
 Increased
complexity

IT  Separate digital
ecosystem
management
 Requires strong
platform
governance

Human  Dual-skill
Resources workforce
required
 Innovation
leadership
needed

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Table 3.1 - Critical Issues in the Context of Recommended Management Strategy –
FINANCE
CRITICAL
ISSUES How is it manifested? Why is it happening? 1) Why Important? 2)
Cause(s)? Implications if not dealt
with?
Finance  New investment outlay  Creation of parallel Poor ROI could worsen
F1 required for separate digital product ecosystem investor confidence
digital line
Capital  Need for platform
Allocation for  Marketing and tech differentiation
Brand Extension development costs

 Short-term margin
pressure
 Shared customer base  Margin erosion
F2
Revenue  Digital extension  Similar product  Confused revenue
Cannibalization competing with core categories tracking
Risk products

 Pricing overlap

F3

F4

F5

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Table 3.2 - Critical Issues in the Context of Recommended Management Strategy –
HR

CRITICAL How is it manifested? Why is it happening? Why Important?

ISSUES Cause(s)? Implications if not dealt
with?
 Separate digital Without balance, cultural
Human extension model fragmentation may occur
Resources  Prior loss of
HR1 Need for digital innovation category
talent and brand expertise
Dual-Skill storytelling talent
Workforce
Requirement

New structural separation Poor coordination reduces

HR2 Role ambiguity between efficiency
core brand and digital
extension
Organizational
Clarity

HR3

HR4

HR5

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Table 3.3 - Critical Issues in the Context of Recommended Management Strategy –
IT/MIS

CRITICAL How is it manifested? Why is it happening? Why Important?

ISSUES Cause(s)? Implications if not dealt
with?
Protection of core brand Weak governance leads to
Info Tech  Separate digital from over-digitalization security and data confusion
IT1 systems needed
 Integration
Platform boundaries required
Separation &
Governance

IT2

IT3

IT4

IT5

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Table 3.4 - Critical Issues in the Context of Recommended management Strategy -
OPERATIONS

CRITICAL How is it manifested? Why is it happening? Why Important?

ISSUES Cause(s)? Implications if not dealt
with?
Retailers remain cautious Poor coordination limits
Operations after previous wholesale market coverage and
OP1  Wholesale and DTC withdrawal decisions retail support.
conflict
Channel
Coordination  Retailer concerns

Separate product lines Operational complexity

OP2 Dual-channel distribution require distinct increases costs and delivery
Supply Chain increases logistical fulfillment systems. delays.
Complexity coordination demands.

OP3

OP4

OP5

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Table 3.5 - Critical Issues in the Context of Recommended Management Strategy -
MARKETING

CRITICAL How is it manifested? Why is it happening? Why Important?

ISSUES Cause(s)? Implications if not dealt
with?
Brand confusion accelerates
Marketing Consumers may struggle Overlapping product loyalty decline and switching
M1 distinguishing core and positioning creates brand behavior.
extension identities. ambiguity.
Brand
Differentiation
Clarity

Weak emotional connection

M2 U.S. brand preference Data-driven campaigns reduces long-term brand
declined by six percent replaced emotionally equity.
Emotional resonant storytelling.
Storytelling
Restoration

M3

M4

M5

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NOT REQUIRED Table 3A – Vertical Causal Analysis
Description of Underlying Cause Critical Issue(s) Priority and
Total Importance
(Common causes for multiple problems) Addressed Frequ
(as identified in Table Low Med High
-ency
3)
1. Strategic Imbalance Toward Digital Efficiency Inventory imbalance, 5 
Nike overemphasized digital transformation as opposed brand dilution, retailer
to emotional brand equity distrust, category
expertise loss.

2. Weak Brand Governance During Structural 4 

Changes Role ambiguity, brand
Organizational restructuring reduced clarity in brand confusion, inconsistent
positioning and accountability. messaging, retailer
concerns.
3. Disrupted Wholesale Relationships 3 
Withdrawal from major retailers weakened distribution channel conflict,
balance supply chain instability,
market coverage gaps.
4. Overreliance on Data-Driven Marketing 3 
Brand preference
Marketing shifted from storytelling to analytics- decline, emotional
focused campaigns disconnect, loyalty
erosion
5. forecasting and Demand Planning 4 
Weaknesses
Inventory surge,
Rapid DTC expansion outpaced supply chain working capital
coordination. pressure, margin
erosion.
6. Talent Realignment Disruptions Innovation slowdown, 2 
product differentiation
Shift away from category offense reduced specialist weakness.
expertise

7.

8.

9.

10.

Additional Issues or Insights which are critical to the success of the organization
OR will critically impact on the success of your recommended management strategy

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Table 3B – Development of What Need to Be Addressed Statements

1. What Needs to Be Addressed

What should Nike do to fund the digital brand expansion and stabilize margins and re-establish
investor confidence after the massive drop in market value, at 28.41 billion.

Implications if not Addressed Opportunities if Addressed

The use of uncontrolled expenditures would A well-managed capital deployment and

exacerbate the issue of cash flow strain, tracking performance would rebuild trust
profitability, and shareholder concerns on among the investors and generate long-term
strategic direction and long-term payback. revenue growth due to disciplined digital
experimentation.

2. What Needs to Be Addressed

The Nike’s core brand teams and digital extension teams need to do to establish clear authority,
reporting relationships, and roles in order to avoid confusion within the organization.

Implications if not Addressed Opportunities if Addressed

Role ambiguity may minimize productivity,
there may be more internal conflict, and Well defined authority lines would help in
accountability within the new dual-brand increasing cooperation, speed in execution, as
operating structure may be undermined. well as cultural alignment within both brand
units.

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 3. What Needs to Be Addressed (IT)

Nike need to introduce digital systems in core and extension brands and still have a single
consumer data analytics and cybersecurity system.

Implications if not Addressed Opportunities if Addressed

Disjointed data systems may undermine Standardized data management would increase
personalization opportunities, decrease customer data, advance digital interaction, and
marketing accuracy, and place the company in expand long-term scalability of technology.
more cybersecurity threats.

4. What Needs to Be Addressed

What strategies does Nike develop to coordinate wholesale relationships and direct-to-consumer
without causing a new imbalance and misalignment of inventory as in the past?

Implications if not Addressed Opportunities if Addressed

The solution would be to coordinate the

Retail mistrust in place may continue, channels with care to stabilize the inventory,
inventory issues may become more prevalent, restore the confidence of the retailers, and
and distribution issues may decrease total maximize the performance of the omnichannel.
market coverage.

1. What Needs to Be Addressed

In what ways can Nike re-engage with emotionally led storytelling through the core brand and
distinguish the digital extension to avoid consumer confusion?

Implications if not Addressed Opportunities if Addressed

Brand dilution might persist, brand Greater emotional interest and explicit brand
loyalty might drop even more, and positioning would restore loyalty and create a
consumer switching behavior might competitive edge that Nike has had since its inception.
increase at an even faster rate than the six
percent preference decline.

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 5. What Needs to Be Addressed

Implications if not Addressed Opportunities if Addressed

Comment – Observations and Conclusions Regarding Diagnosis

The problems of Nike lie in the strategic imbalance between the efficiency in the technological area and the
emotional brand name. Governance, coordination and disciplined investment would bring back stability and
controlled digital innovation would be enabled.

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Table 4.1 – Evaluation of Alternative Solutions & Recommendation

WNTBA Statement #1 (Finance)

How Nike will finance the digital extension and stabilize the profitability and rebuild investor confidence
following a substantial valuation drop.
Alternative #1 Pros Cons

Creates financial discipline  May slow innovation

Establish Dedicated Innovation Investment and accountability speed
Fund
Limits uncontrolled  Requires strict
expansion spending performance monitoring

Protects core brand

profitability

Alternative #2 Pros Cons

 Dilutes control
External Funding or Strategic Co-Investment  Reduces internal capital  May create
strain strategic
dependency
 Shares financial risk  Profit-sharing
reduces margin
capture

Recommendation & Rationale

Recommend Alternative A.

Controlled internal capital allocation restores financial discipline after inventory surge and valuation
decline. It also balances innovation with shareholders’ confidence.

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Table 4.2 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #2 (HR)

What can Nike do to create structural clarity between core and digital extension teams?

Alternative #1 Pros Cons

Separate Leadership Teams Well laid out May craft overhead and
responsibility, authority silo internalization.
in decision making and
less confusion in
reporting.

Alternative #2 Pros Cons

Stimulates teamwork and Losses accountability and

Built-In Cross-Functional Teams. mutual experience between can reenact old structural
brands. confusion.

Recommendation & Rationale

Recommend Alternative A.
Precise structural boundaries will decrease ambiguity and preserve the essence of the brand.

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Table 4.3 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #3 (IT)

Nike need to introduce digital systems in core and extension brands and still have a single consumer data
analytics and cybersecurity system.

Alternative #1 Pros Cons

 High
Centralized Unified Data Platform  Maintains implementation
integrated cost
consumer insights  Integration
 Strong complexity
cybersecurity  Slower rollout
control timeline
 Prevents data
fragmentation

Alternative #2 Pros Cons

Allows flexibility and Creates data silos and
faster innovation within the weakens customer insight
Independent Digital Ecosystems extension. integration

Recommendation & Rationale

Select Alternative A.
Unified analytics strengthens personalization and long-term scalability

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Table 4.4 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #4 (Operations)
What strategies does Nike develop to coordinate wholesale relationships and direct-to-consumer without
causing a new imbalance and misalignment of inventory as in the past?

Alternative #1 Pros Cons

Rebuilds retailer trust, Requires careful
Structured Omnichannel Governance defines channel monitoring, and
Framework boundaries, and improves coordination investment
inventory balance.

Alternative #2 Pros Cons

Reduces operational Limits cross-channel
Full Separation of Channels overlap and simplifies synergy and market
logistics across the reach.
supply chain.

Recommendation & Rationale

Recommend Alternative A.

A Structured Omnichannel framework stabilizes inventory and restores retailer confidence.

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Table 4.5 – Evaluation of Alternative Solutions & Recommendation

WNTBA Statement #5 (Marketing)

In what ways can Nike re-engage with emotionally led storytelling through the core brand and distinguish
the digital extension to avoid consumer confusion?

Alternative #1 Pros Cons

Advantages include Requires significant

Core brand emotional campaign relaunch Rebuilding identity, and creative and financial
strengthens loyalty. investment.

Alternative #2 Pros Cons

May not fully restore
Appeals to younger deep emotional brand
Influencer driven digital campaign focus consumers and equity.
strengthens digital
relevance.

Recommendation & Rationale

Alternative A is the best.

Emotional storytelling traditionally proven to be Nike’s competitive advantage.

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Table 4.6 – Evaluation of Alternative Solutions & Recommendation

WNTBA Statement #6
(optional if required)

Alternative #1 Pros Cons

Alternative #2 Pros Cons

Recommendation & Rationale

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Table 5 – Recommendation Detail

Recommendations & ST = 0 to Timing Priority

3 months, MT = 3 to 9 months (See Note to
the Marker)
Supporting Detail LT = 9 to 15
months, Immediate – 0 to 15 days
Rec #1 (Finance) 0 to 3 Hi
months
Establish Dedicated Innovation Investment
Fund

Rec #1 - Critical Success Factors & Risks to be Managed

Defined investment standards, open performance indicators, rigorous
capital control as well as effective financial management systems.

Excessive investments, sluggish investment returns, misplaced funds

in the capital and lack of trust among investors on the outcome of
digital experimentation.

Rec #2 (HRM) 0-3 HI

month
Separate Leadership Teams. s
Create core and digital extension brands that
have separate leadership bodies with a
reporting line.

Rec #2 - Critical Success Factors & Risks to be Managed

There are clear boundaries of governance, effective communication

channels, performance metrics are aligned and there is clarity of
culture. Risks to be Managed involves Intrapersonal silos, duplication
of efforts and employee resistance toward structural changes.

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Table 5 – Recommendation Detail

Recommendations & ST = 0 to 3 months, MT = 3 to 9 months Timing Priority

Supporting Detail LT = 9 to 15 months, Immediate – 0 to 10 days
Rec #3 (IT) 0 to 9 HI
months
Implement Unified Data Governance Platform.

Rec #3 - Critical Success Factors & Risks to be Managed

Cybersecurity robustness, scalable infrastructure, and IT team with the right skills are all critical for
success of a unified data management.
Risk such as Integration delays, data breaches, and cost overruns can be managed.

Rec #4 3 to 9 HI
months
Establish Structured Omni channel Governance Framework (Operations)

Rec #4 - Critical Success Factors & Risks to be Managed

Critical Success Factors

Proper forecasting, cooperation with retailers, alignment of the supply chain, and their tracking.

Risks to be Managed
Resistance in retail, fluctuating demand, logistical complexity and rejuvenated inventory build-up.

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Table 5 – Recommendation Detail

Recommendations & ST = 0 to 3 months, MT = 3 to 9 months Timing Priority

Supporting Detail LT = 9 to 15 months, Immediate – 0 to 10 days
Rec #5 (0–3 HI
months)
Core brand emotional campaign relaunch (Marketing)

Rec #5 - Critical Success Factors & Risks to be Managed

Critical Success Factors

Strong storytelling, sponsorships, and ongoing communication, as well as cross-channel.

Risks to be Managed
Expensive campaigning, lack of consistency and low returns that can be measured in the short run.

Rec #6

Rec #6 - Critical Success Factors & Risks to be Managed

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OPTIONAL Table 1 - A SWOT+ Data Gathering Table (STRATEGY)

Strategy (Digital Brand Extension Strategy

Strengths/  Strong global brand recognition and loyalty

Positives  Established digital infrastructure and DTC capability
 Strong athlete partnerships and storytelling legacy

INT

Growth in digital commerce and personalization

Opportunities
 Rising Gen Z engagement via digital ecosystems

EXT  Sustainability driven product innovation demand

 Intense rivalry from Adidas, Puma, Lululemon

Threats
 Low switching costs among consumers

EXT

 Structural confusion after abandoning category offense

Problems/  44% inventory growth imbalance (Majumdar et al., 2024)
Challenges/  6% U.S. brand preference drop
Weaknesses  $28.41B valuation decline

INT

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OPTIONAL Table 1.1 - A SWOT+ Data Gathering Table (FINANCIAL MANAGEMENT)

Finance
 Strong global revenue base ($49.3B FY2024) (Majumdar et al., 2024).
Strengths/  The DTC digital channels that are high-margin.
Positives  The global aspect eliminates cost inefficiency

INT

 Potential across the digital revenue.

Opportunities  Optimization of cost by enhanced forecasting.

EXT

 Inflation diminishing discretionary consumer spending.

Threats  Pressure of pricing competition.
 Valuation market volatility.

EXT

 $28.41B valuation decline (Majumdar et al., 2024).

Problems/  44% inventory growth imbalance
Challenges/  Markdowns Margin pressure.
Weaknesses

INT

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OPTIONAL Table 1.2 - A SWOT+ Data Gathering Table (HR MANAGEMENT)

Human Resources
 Good employer brand in the world.
Strengths/  Artistic promotional and sponsor knowledge.
Positives  Elliott Hill takes over from experienced leadership.

INT

 Digital and innovation talent attraction capability.

Opportunities  Flexibility in the hybrid workforce.

EXT

 Competition for tech talent

Threats  Restructuring burnout of employees.
 Migration of talent to agile startups.

EXT

 Expertise in category offenses lost.

Problems/  Inter-unit structural uncertainty.
Challenges/  Clash of culture analytics vs creativity.
Weaknesses

INT

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OPTIONAL Table 1.3 - A SWOT+ Data Gathering Table (IT/MGT INFO SYSTEMS)

Information Technology
 High-performance digital platforms and applications.
Strengths/  Capabilities of data analytics.
Positives  Investments on technology in AI and digital forms of engagement.

INT

 Individualization in terms of integrated data systems.

Opportunities  Growth of the online trade on the global scale.
 Scalable omnichannel integration.
EXT

 Cybersecurity risks
Threats  High speed technological obsolescence.

EXT

 Excess dependence on digital strategy in the past.

Problems/  Fragmented data risks
 Implementation cost of high technology is high.
Challenges/
Weaknesses

INT

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OPTIONAL Table 1.4 - A SWOT+ Data Gathering Table (PRODUCTION OPERATIONS MANAGEMENT)

Operations
 Global supply chain scale
Strengths/  Strong distribution channel.
Positives  Existing manufacturing alliances.

INT

 Omnichannel optimization
Opportunities  Predicting enhancement using analytics.
 Sustainable sourcing services.
EXT

 Supply chain disruptions

Threats  Rising logistics costs

EXT

 Wholesale withdrawal distrust amongst retailers.

Problems/  Ineffectiveness in channel coordination
Challenges/
Weaknesses

INT

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OPTIONAL Table 1.5 - A SWOT+ Data Gathering Table (MARKETING MANAGEMENT)

Marketing
 Iconic “Just Do It” legacy
Strengths/  Strong athlete endorsements
Positives  Global brand recognition

INT

 The resurgence of emotional storytelling.

Opportunities  Younger generation involvement through online community.

EXT

 High competition with Adidas, Puma, Lululemon.

Threats  Competitors that are influenced by the influencers.

EXT

Data-intensive marketing dilutes the brand.

Problems/ A decrease in emotional differentiation.
Challenges/
Weaknesses

INT

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Table 1.6 The Five Forces of Competition in the Industry
Rivalry among Competing Sellers  (Hi). There is stiff competition with Adidas, Puma,
Lululemon, and new competitors providing innovation,
influencer association, and sustainability positioning.
Potential Entry of New Competitors  (Med). The entry is restricted by high costs of brand
building and global scale requirement, but digitally
native niche brands can fly quick through social media.
Competitive Pressures from  (Med). Consumers are moving to athleisure
Substitute Products substitutes and lifestyle-oriented brands and are less
reliant on conventional classes of performance
sportswear
Competitive Pressures from  (Lo). The magnitude of global sourcing ensures that
Supplier Bargaining Power and Nike will not be vulnerable to dominance of suppliers.
Supplier-Seller Collaboration
Competitive Pressures from Seller-  (Hi). The high switching and substituting preference
Buyer Collaboration and has been credited by the low switching costs and the
Bargaining higher brand substitutes.

Optional Table
1.7 Industry Key Success Factors
Technological related  Strong digital commerce capabilities

 Advanced data analytics and personalization systems

Operations related  Effective supply chain management across the globe.
 Proper demand prediction and inventory management.
Distribution related  Global retail footprint
Marketing related  Good emotional narration and brand recognition.
 Good brand positioning and differentiation.
Skills related  Specialist knowledge about products.
Organizational  Capacity to strike the right balance between innovation and brand
capacity equity
Other  Cultural relevance and inclusivity

Optional Table 1.8 Industry Prospects and Overall Attractiveness

Factors making the  Growing global demand for athletic and athleisure products
industry attractive  Strong digital commerce expansion

Factors making the  Intense competitive rivalry

industry unattractive
Special industry  Inventory volatility due to forecasting error
issues/problems
Profit outlook  Moderately attractive. Good brands attract high margins, though
competition and poor inventory management may greatly lower
profitability.

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 Table 1.9 The Business Environment
Opportunities Threats
Political Global supply chains and sourcing
strategies are impacted by trade tensions,
tariffs, and regulatory uncertainty, which
puts a greater amount of operations risk
exposure.
Economic The bargaining power in purchasing power
of consumers in the high-end sportswear
markets is diluted by the inflationary forces
and decreased discretionary consumption
expenditures.
Societal/Cultural Customers are seeking sustainability,
and authenticity when met, the brand
will be more differentiated.
Technological Fast digitalization opens up
customization, targeted interaction,
and marketing at scale, but too much
dependence will lead to a balance of
strategy being replicated again.

References
Majumdar, A., Lambert, S., Srivastava, M., Prabha, S. L., & Mashkilleyson, E. (2024). Nike: Sprint to recover

lost ground. Ivey Publishing. [Link]

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