CORPORATE STRATEGY (ZCZB6523)

FULL TIME, UKM, BANGI, SELANGOR

GROUP NO. 9

CONSOLIDATION OF STRATEGIES

NIKE INC.

PREPARED FOR

DATUK DR. JOHN ANTONY XAVIER

NAME [Link]
SITI NUR ASMIRAH BTE SAMAT ZP04042
SYAFIQAH BINTI MOHAMAD ZP03926
 STRATEGIES IMPLEMENTATION OF NIKE COMPANY INC.

No Strategies Source Group Consolidated Strategy

1 Gain buyer loyalty to its brand SWOT A Increase the branding
2 Improve the quality and creativity in the Nike product lines SWOT A of Nike to increase the
3 Improvement branding of Nike SWOT A loyalty for customer
4 Increase the promotion or sales activity SWOT A through improvement
5 Increase the benefit of the loyal customer (e.g.: gifts, vouchers) SWOT A quality and efficiency
6 Maintain the customer satisfaction through the brand image SWOT A of branding, products
and services of Nike as
7 Widen their target customers and target market SWOT A
well as make the
8 Maintain the loyalty of the customers SWOT A
promotions or sales
9 Highest customer base (customer loyalty) SPACE A activity.
10 Strongest brand image SPACE A
11 Quality superior than competitor SPACE A
12 Be competitor with other brand (competitive pressures) SPACE A
13 Management for profile Nike GE A
14 Increase the quality of products and services GE A
15 Successfully the branding and promotions GE A
16 Expand the efficiency for product GE A
17 Expanding and providing excellent services to customers McKinsey A
18. Getting a strong brand recognition SPACE A
19. Collaborate with a great celebrity as a spokespersons SPACE A
20. Implement a new era focusing on children from 3 to 12 years old SWOT A
21. Taking the advantage of increasing number of peoples exercising SWOT A
nowadays.
22. Maintained the trust of their loyal customers SPACE A
23. Make a joint venture with some suppliers that could offer a good SPACE A
quality raw materials against the severe competition
24. Implement a strong sense of culture in the working environment SWOT A
25. Collaborate with a great celebrity as a spokespersons SWOT A
26. Developed a stores catering to the active females SWOT A
27. Developed a successful marketing campaigns SWOT A
28. Command a premium price for its product SWOT B Studying about price to
29. Study the market price of the competitors SWOT B give the best price for
30. Study their pricing and gives more benefits toward their customers SWOT B customer.
31. Very expensive product SPACE B
32. Bitter competition with pricing SPACE B
33. Soaring input and freight cost SPACE B
34. Management the cost reduction GE B
35. Restructuring of operation in order to cut the cost of production SWOT B
36. Concern with the inflation situation worldwide SWOT B
37. Getting a strong financial return SWOT B
38. Trough R&D to design premium performance athletic products SWOT C Used the technology,
39. Improving the effectiveness of operation within company SWOT C athletes, study the trend
40. Product specification to differentiate them from the other SWOT C of people, R&D, and
competitor innovation to come out

2
41. Invest in the invention of the new product line of Nike SWOT C the new products and
42. Implement new marketing strategies to expose the customer to the SWOT C maintain the existing
other product line of Nike other than footwear products of Nike.
43. Study the currency trends SWOT C
44. Market to tailored line of sporting apparel to compete more BCG C
directly with under amours high performance sweat resistant line
of fitting clothing’s
45. Used the athletic for the marketing BCG C
46. Sport agency which Nike sold. BCG C
47. Capacity for innovation SPACE C
48. Used the research and development for new and existing product. GE C
49. Used the technology for development of products GE D
50. Diversify business portfolio with new acquisitions McKinsey C
51. Create product that will appeal to as wide of an audience as McKinsey C
possible while using the celebrity athletes to endorse the customer
52. Promote more than just shoes but athletic apparel and equipment. McKinsey C
53. Create Nike ‘trendy’ product in other country for increase the McKinsey C
bigger return of profit
54. Development new ID Nike to customize own personal shirts, McKinsey C
shorts and shoes.
55. Improved the internet sales SWOT C
56. Developed a superior research and development department SWOT C
57. Make used of the advanced technologies nowadays to diversify SWOT C
their market
58. Established a good policy towards F.D.I SWOT C
59. Maintained the specialized labor in the production SPACE C
60. Pursue the government to establish Anti- dumping duties on SWOT C
Chinese products
61. Widen their target market SWOT D Expand the market of
62. Increase the capital for the women related product line of Nike SWOT D Nike with growth the
63. Increase the CSR activity for Nike through the joint-branch with a SWOT D market share, bitter
NGO market share with
64. Diversified their product line globally SWOT D competitor, increase the
65. Be more alert to the global currency changes SWOT D financial aspects (return
66. Conduct a team to study the economic trends and changes SWOT D of investment, liquidity,
capital, inventory
67. Study the market demand of each country to market their product SWOT D
turnover, profitability),
lines
and management of risk
68. Predict the changes in the currency based on previous economic SWOT D
environmental
report
(currency risk and
69. Growth the share market BCG D economic) through
70. Make the higher for return of investments compare the other SPACE D activity buying and
competitor. selling share market,
71. Rising the debt for financial leverage SPACE D CSR and investments.
72. Very strong liquidity position SPACE D
73. Higher working capital than competitor SPACE D
74. Inventory turnover SPACE D
75. Increase the profitability growth SPACE D

3
76. Make the biggest market share SPACE D
77. Extraordinary marketing activities SPACE D
78. Adapt with economic recession with biggest threat to consumer SPACE D
income and buying pattern.
79. Management regulatory risk coming from the government SPACE D
regimes.
80. Management currency risk SPACE D
81. Make sure the stability of financial SPACE D
82. Boost the sales to profit potential SPACE D
83. Huge potential to grow SPACE D
84. Be ease of entry to market SPACE D
85. Expand the size of market for Nike GE D
86. Increase the market rate of growth GE D
87. Make the nature of competition and its diversity GE D
88. Increase the profit margin GE D
89. Management of environmental impact GE D
90. Bitter for market share to competitor GE D
91. Pay more attention to Chinese market D
92. Reduced the impact of foreign currency fluctuation and interest SWOT D
rates in the market
93. Avoid the political instability issues in the market. SWOT D
94. Getting a successful being competitive SWOT D
95. Developed or owned any factories for production SWOT D
96. Developed the automatic replenishment system SPACE D
97. Overcome the obstacles from the Footlocker SWOT D
98. Upgrade the employment practice at their international SWOT D
manufacturing sites
99. Reduced their dependency on the footwear sales SPACE D
100. Growing international presence SPACE D

4
 STRATEGIES EVALUATION OF NIKE COMPANY INC.

STRATEGY 1 STRATEGY 2 STRATEGY 3 STRATEGY 4 STRATEGY 5

Aimed a new Expanding its Accelerate the Focus on Implement a
target market current and funding for improving product
which is more future foreign numerous working diversification
focus on the market. marketing conditions & with company
women and campaign in human right at newest
KEY FACTORS WEIGHT kids order to get international technologies,
specific manufacturer result in increased
markets/ center and earnings could be
customer group increase their reinvested into
productivity. R&D plans
KEY EXTERNAL FACTORS (EFE AS TS AS TS AS TS AS TS AS TS
MATRIX)
Economy 0.30 4 1.20 5 1.50 2 0.60 1 0.30 3 0.90
Legal/ Political/ Governmental 0.12 3 0.36 2 0.24 1 0.12 5 0.60 4 0.48
Social/Cultural/ Demographic/Environment 0.13 4 0.52 1 0.13 3 0.39 5 0.65 2 0.26
Technological 0.20 3 0.60 2 0.40 4 0.80 1 0.20 5 1.0
Competitive 0.25 5 1.25 3 0.75 4 1 1 0.25 2 0.50
TOTAL 1.0 1 3.93 3 3.02 5 1.91 4 2.0 2 3.14
KEY INTERNAL MATRIX (IFE MATRIX)
Management 0.20 3 0.60 2 0.40 1 0.20 5 1.0 4 0.80
Marketing 0.25 5 1.25 4 1.0 3 0.75 1 0.25 2 0.50
Finance/ Accounting 0.21 4 0.84 5 1.05 3 0.63 1 0.21 2 0.42
Production/Operations 0.14 2 0.28 1 0.14 3 0.42 4 0.56 5 0.70
Research/ Development 0.12 3 0.36 2 0.24 1 0.12 4 0.48 5 0.60
Management Information System 0.08 2 0.16 1 0.08 4 0.32 3 0.24 5 0.40
TOTAL 1.0 1 3.49 3 2.91 5 2.44 4 2.74 2 3.42

5
 ACTION PLAN OF NIKE COMPANY INC
Strategies & Strategies Expected Outcomes Strategic Initiatives Department/Unit KPI Critical Success Factors
Outcomes (Programs) Responsible
Aimed a new target  Becoming a global  Establish the outlet  Management  No. of sales  Overcome the market
market which is more brand that is suitable that are specific for  Financial  Allocation of R&D barriers between
focus on the women and for all class of society the target market.  Marketing activity these target markets.
kids
Implement a product  Come out with the  Increases the R&D  R&D Department  No. of inventory level  Implement the
diversification with products that are able expenses by 7% in  Production  The % efficiency of innovative product
company newest meet the need of all the specific aimed  Manufacturing the newly adapted diversification of
technologies, result in target market target market. technologies Nike product line.
increased earnings
could be reinvested into
R&D plans
Expanding its current  Increasing the  Joint venture with a  Export department  The % of sales  Implementation of
and future foreign regionally market potential partner in  Sales and marketing growth regional innovative ideas for
market. share through the order to expand the  Financial  The number of export strategic sales and
export activity market share annually. marketing initiatives
Focus on improving  Improving the trust  Conduct a research  Manufacturing  The working hours of  The ability to meet
working conditions & and the loyalty of the on the behavior of the  Human Resource labor the need and want of
human right at labor/worker towards labor in order to  Management  The annual labor the labor or worker
international Nike. satisfied their need wage through a changes of
manufacturer center and want.  Daily numbers of implementation of a
and increase their  Study the market production new policy in the
productivity. environment of Nike Nike management
in term of its team.
geographical area,
political influence
and economic level
Accelerate the funding  Widening the target  Increase Marketing  Marketing  The impact of the  Implement an
for numerous market of Nike expenses by 10%,  Management campaign on the % effective marketing
marketing campaign in worldwide designing a specific  Financial sales revenue on a campaign annually to
order to get specific campaign for new  Sales operation monthly basis. increase the
markets/ customer target market customers awareness
group (women and kids) to Nike

6
APPENDIX

APPENDIX 1.0: SWOT ANALYSIS OF NIKE INC.

a. Strengths, Weakness, Opportunities and Threats (SWOT) for Nike

STRENGTHS WEAKNESS
1 Capacity Innovation 1 High product price compare to ADIDAS
2 Strong global brand 2 Driven by its footwear business
3 Strong customer relationship/satisfaction 3 Perceived by some consumers as being too
4 Strong distribution chain premium and a luxury brand
5 Current disarray among its competitors 4 Currency exposure
5 Medium retail presence
OPPORTUNITIES THREATS
1. Begun to diversify into accessories and 1. Competition
other premium products apart its signature 2. Currency volatility
footwear 3. Company has a global supply chain
2. Growing segment of women athletes 4. Improve on his image
3. Develop the fashion brand image 5. Economic rescission
4. Increase in product innovation
5. Emerging Markets

b. Mapping Interaction
MATCHING S&O MATCHING T&S
S104: Expand capacity of innovation with the T1S5: Competition with other competitor make the
increase in product innovation Nike. Nike current disarray among its competitors.
S2O3: Make the strong brand image of Nike with T3S4: Company must have the global supply chain to
product innovation survive in market, thus Nike have strong distribution
S3O2O3: Nike make the strong relationship and chain.
increase the satisfaction to customer with T4S2: Improve Nike image to make his strong brand in
produce product for women and develop the market global.
fashion brand.
MATCHING W&O MATCHING T&W
W2O1: The company focuses to footwear T1W1: Competition price with competitor among Nike
business, thus Nike begun to develop accessories and Adidas.

7
and other premium products apart its signature T4W3: Nike need to improve on his image because
footwear. have some consumers as being too premium and a
W3O2O4: Have some customer be too premium luxury brand.
and luxury, hence Nike produce the product
more segment to women and improve his fashion
brand.

c. Strategy Development
EXTERNAL FACTORS
INTERNAL FACTORS OPPORTUNITIES THREATS

STRENGTHS COMPARATIVE ADVANTAGE MOBILISATION

S01: TS1: Product specification to
i. Improve the quality and the differentiate them from the other
creativity in the Nike product competitor.
lines. TS1: Gain buyer loyalty to its
ii. Trough R&D to design brand
premium performance TS2: Expand their market.
athletic products TS3: Increase their CSR activity
iii. Developed a superior through the joint-branch with a
research and development NGO.
department
S02: Branding improvement
Improving the effectiveness of
operation within company
S03: Widen their target market
WEAKNESS INVESTMENT/DIVESTMENT DAMAGE CONTROL
WO1: Invest in the invention of the TW1:
new product line of Nike. i. Increase the promotion or
WO2: Increase the capital for the sales activity, or
women related product line of Nike. ii. Collaborate with a great
celebrity as a
spokespersons

8
 iii. Developed a successful
marketing campaigns
iv. Improved the internet
sales
TW2: Increase the benefit of the
loyal customer (eg: gifts,
vouchers)

d. SWOT Analysis
SWOT Analysis: Strategy Development

The SWOT matrix Strength (S) Weakness (W)

1. Strong global brand 1. High product price compared to
2. Strong customers satisfaction the competitors.
3. Strong distribution chain 2. Driven by its footwear business.
3. Currency exposure
Opportunities (O) SO Strategies WO Strategies
1. Product diversification A. (S1, O1) A. (W1, O1)
2. Developed a fashion brand image i. Diversified their product i. Study the market price of
3. Emerging market line globally. the competitors
ii. Make used of the advanced ii. Command a premium price
technologies nowadays to for its product
diversify their market iii. Restructuring of operation
B. (S2, O2) in order to cut the cost of
i. Maintain the customer production
satisfaction through the B. (W2, O2)
brand image. or i. Implement new marketing
ii. Taking the advantage of strategies to expose the
increasing number of customer to the other
peoples exercising product line of Nike other
nowadays than footwear
C. Widen their target customers and ii. Developed a stores catering
target market. (S3, O3) to the active females, or

9
 iii. Implement a new era
focusing on children from 3
to 12 years old (W2,O2)
C. Be more alert to the global
currency changes. (W3, 03)
Threats (T) ST Strategies WT Strategies
1. Competition A. Maintain the loyalty of the A. Study their pricing and gives
2. Currency volatility customers. (S1, T1) more benefits toward their
3. Economic recession B. Study the currency trends (S1, customers. (W1, T1)
T2) B. (W2, T2)
C. (S3, T3) i. Study the market demand of
i. Conduct a team to study the each country to market their
economic trends and product lines
changes ii. Implement a strong sense of
ii. Getting a successful being culture in the working
competitive environment.
iii. Developed or owned any C. (W3, T3)
factories for production i. Predict the changes in the
iv. Developed the automatic currency based on previous
replenishment system economic report
v. Overcome the obstacles ii. Concern with the inflation
from the Footlocker situation worldwide
vi. Upgrade the employment iii. Getting a strong financial
practice at their return
international manufacturing iv. Pursue the government to
sites establish Anti- dumping
duties on Chinese products
v. Established a good policy
towards F.D.I
vi. Reduced the impact of
foreign currency fluctuation
and interest rates in the
market

10
 vii. Avoid the political
instability issues in the
market.

e. IFE Matrix
FACTORS IMPORTANCE WEIGHTED CAPABILITY HIGHEST HIGHEST
TO AVERAGE ‘C’ SCORES POSITIVE
INDUSTRY ‘B’ ARE DIFFERENCE
(A) B = A/∑A STRENGTH ‘E’
(158) D=BxC BETWEEN
E= A - C
1. Capacity Innovation 9 0.057 10 0.570 -1

2. Strong global brand 9 0.057 8 0.456 1

3. Strong customer 8 0.051 6 0.306 2

relationship/satisfaction

4. Strong distribution 9 0.057 10 0.570 -1

chain

5. Emerging Markets 9 0.057 7 0.399 2

6. High product price 7 0.044 9 0.396 -2

compare to ADIDAS

7. Driven by its 7 0.044 9 0.396 -2

footwear business

8. Perceived by some 8 0.051 6 0.306 2

consumers as being too
premium and a luxury
brand

9. Currency exposure 9 0.057 8 0.456 1

10. Medium retail 7 0.044 9 0.396 -2

presence

11
 11. Begun to diversify 7 0.044 9 0.396 -2
into accessories and
other premium products
apart its signature
footwear
12. Growing segment of 7 0.044 8 0.352 -1
women athletes

13. Develop the fashion 6 0.038 9 0.342 -3

brand image

14. Increase in product 8 0.051 10 0.510 -2

innovation

15. Emerging Markets 8 0.051 7 0.357 1

16. Competition 9 0.057 6 0.342 3

17. Company has a 9 0.057 10 0.570 -1

global supply chain

18. Currency volatility 9 0.057 8 0.456 1

19. Improve on his 7 0.044 6 0.264 1

image
[Link] rescission 6 0.038 8 0.304 -2

f. EFE Matrix
FACTORS RELATIVE WEIGHT SCORE (C) – WEIGHTE OPPORTUNITY THREAT (F)
IMPORTANCE (B) EFFECTIVENESS D SCORE (E)
TO THE FIRM B = A/50 OF COMPANY (D)
RATING (A) RESPONSE D = (B X C)
MARKET
1. Growth segments 9 0.18 10 1.8 1 -1
of female athlete

2. Promotion as 8 0.16 7 1.12 3 1

fashionable wear
not only sportswear

12
 3. Brand 8 0.16 9 1.44 2 -1
reorganization by
market regions
COMPETITION
1. High competitive 9 0.18 10 1.8 1 -1
industry

2. Global currency 9 0.18 10 1.8 1 -1

changes

3. Production of 7 0.14 9 1.26 2 -2

counterfeit
products/ generic
products

APPENDIX 2.0: SPACE MATRIX ANALYSIS OF NIKE INC.

a. SPACE Matrix Calculation for CA, IS, FS and ES

Internal Strategic Position External Strategic Position
Competitive (CA) Industry (IS)
Market Share -1 Growth Potential +6
(Make the biggest market share) (Huge potential to grow)

Customer Loyalty -1 Profit Potential +6

(Highest customer base) (Boost the sales to profit
potential)
Brand Image -1
(Strongest Brand Image) Financial Stability +6
(Make sure the stability of
High Quality Products -1 financial)
(Quality superior than competitor)
Ease of Entry to Market +2
X Competitive Pricing -6 (Entrance is very ease)
(Very expensive product)
A Capacity for Innovation +6
X Marketing Activities -1
I (Extraordinary marketing activities) Consolidation +4
S (Growing international presence)
Average: -1.83 Average: +5.00
Total X Axis: +3.17
Financial (FS) Environmental (ES)
Return on Investments +6 Competitive Pressure -1
(Be competitor with ADIDAS)

13
 Make the higher for return of
investments compare the other Pricing Wars among Rivals -4
Y competitor. Bitter competition with pricing
+3
A Financial Leverage Soaring input and freight cost -2
X (Rising the debt for financial
I leverage) Economic Recession -2
S +6 (Adapt with economic recession
Liquidity with biggest threat to consumer
(Very strong liquidity position) income and buying pattern)

+6 Regulatory Risk --1

Working Capital (Management regulatory risk
(Higher working capital than coming from the government
competitor) regimes)
+6
Inventory turnover Currency Risk -1
+6 (Management currency risk)
Profitability Growth
Increase the profitability growth
Average: +5.5 Average: -1.83
Total Y Axis: +3.67

b. NIKE SPACE Matrix Graph

FS

CONSERVATIVE AGGRESSIVVE

(3.17, 3.67)

CA IS

DEFENSIVE COMPETITIVE

ES

Aggressive Strategy

i. Backward, forward, horizontal integration

ii. Market penetration

14
 iii. Market development
iv. Product development
v. Diversification

APPENDIX 3.0: GE MATRIX ANALYSIS OF NIKE INC.

i. Determine the Market Attractiveness and Competitive Position for Nike

MARKET ATTRACTIVENESS
FOOTWEAR NIKE APPAREL NIKE EQUIPMENT’S
FACTORS
WEIGHT RATING WEIGHTED RATING WEIGHTED RATING WEIGHTED
SCORE SCORE SCORE
Size of market 0.22 4 0.88 2 0.44 1 0.22
Market rate of growth 0.25 3 0.75 2 0.50 2 0.50
The nature of competition 0.16 2 0.32 1 0.16 1 0.16
and its diversity
Profit Margin 0.18 5 0.90 3 0.54 2 0.36
Impact of technology, the 0.10 3 0.30 2 0.20 1 0.10
law, and energy efficiency
Environmental impact 0.09 1 0.09 1 0.09 1 0.09
TOTAL 1.00 - 3.24 - 1.93 - 1.43

COMPETITIVE POSITION
FOOTWEAR NIKE APPAREL NIKE EQUIPMENT’S
FACTORS
WEIGHT RATING WEIGHTED RATING WEIGHTED RATING WEIGHTED
SCORE SCORE SCORE
Market Share 0.20 5 1.00 4 0.80 1 0.20
Management Profile 0.19 4 0.76 3 0.57 2 0.38
R&D 0.10 4 0.40 2 0.20 2 0.20
Quality products and services 0.18 3 0.54 3 0.54 2 0.36
Branding and promotions 0.16 3 0.48 2 0.32 2 0.32
success
Place or Distribution 0.04 1 0.04 1 0.04 1 0.04
Efficiency 0.10 2 0.20 2 0.20 2 0.20
Cost Reduction 0.03 1 0.03 1 0.03 1 0.03
TOTAL 1.00 - 3.45 - 2.70 - 1.73

15
 ii. Plot the business unit on a matrix

FW

AP EQ

iii. Analyze the Information

Investment Implications
Box Invest/Grow Selectivity/Earnings Harvest/Divest
Invest or Not Definitely invest Invest if there’s money left and the Invest just enough to keep
situation of business unit could be the business unit operating
improved or divest

iv. Future Direction of Each Business Unit

Footwear Apparel Equipment
Industry Attractiveness Stay the same Stay the same Increase
Business unit Increase Increase Decrease
competitive strength

16
APPENDIX 4.0: 7’s MCKINSEY’S MATRIX ANALYSIS OF NIKE INC.

7s Framework Descriptions
Strategy Diversify business portfolio with new acquisitions
Structure  Matrix-structure
 Nike must be balancing the creative aspects among structure and
discipline
Systems  Nike must be encourages work ethics
 State of the are computer system
Shared Values  Nike needs to balance their aspects of individualistic atmosphere and
structure of matrix.
 Calculate the risk of Nike taking.
Staff i. Mix of new hires and promotions in Nike products such as;
 Promotions - Consistency or company knowledge
 New-hire employees – business minded
ii. Socializing
Skills Financial disciplined
Style Empowerment of top management

17
APPENDIX 5.0: BCG MATRIX ANALYSIS OF NIKE INC.

RELATIVE MARKET SHARE

(CASH GENERATION)
HIGH LOW

STARS QUESTION MARKS

HIGH

 Nike Golf  Nike Watches

MARKET GROWTH RATE

 Equipment  Nike Apparel

Strategy: Invest for growth Strategy: Invest, if has potential,
(CASH USAGE)

otherwise sell.
CASH COWS DOGS

 Cash Cows  Sports agency which Nike sold

 Athletic Footwear
LOW

Strategy: Harvest / hold Strategy: Divest: to sell or to liquidate

Harvest: to increase the SBU’s short the business
term cash flow.
Hold: to invest enough just to hold at the
current level.

i. Stars
Nike developed a stars in their products through the hiring the Tiger Woods to represent its new products
line of golf clubs. Affect by hiring the Tiger Woods, sales of products Nike be increase in golf clubs.
Strategy by Nike used the technology with monitor a runner’s distance and calories burned has been a
pleasant star by Nike expects the market for Nike to grow rapidly.

ii. Question Marks

Nike has decided to market a tailored line of sporting apparel to compete more directly with under amours
high performance sweat resistant line of fitting clothing’s. Thus, Nike need to closely the monitor sales of
these products to determine whether it has become a star or dogs its hand. If, the strategy be successfully,
the Nike will become star, but if strategy be failed products of Nike will become the dogs.

iii. Cash Cows

In these cases of Nike, they use the Air Jordan sneakers, Nike generate lots of revenues but exhibit the low
growth. Hence, the market of share is higher but the growth rate is low.

iv. Dogs
The “dogs” situations, the market shares and growth of return are low. Therefore, the strategy of Nike will
be taking is divest. Nike needs to sell or to liquidate the business, for examples the cases of World Wrestling
Federation folded the X

18