Students Names
A
B
C
D
Mission and Vision
Alternatively, Nike’s mission is to
expand its potential of reaching a
Nike's vision aims to create a wider pool of sports enthusiasts to
platform to encourage and influence establish a positive impact globally
its consumers by integrating through groundbreaking innovations.
revolutionized products and services Its mission also involves the internal
to facilitate their journey of inclusive growth of a diverse global team that
experience as sports enthusiasts at would aid in managing its demand
every level. This is seen through the generation. This approach aligns
digitalisation of its online shopping with Nike’s inspriational tone of
app and website, giving access to a helping individuals reach their
wider potential target market and potential and establish a productive
various cost-saving opportunities. supply chain with the purpose of
Nike’s vision showcases its inspiring having a positive impact on
and innovative role in the sports diversification, creation of an
industry, with the progress of its inclusive sports community for
expansion of supply chain on a women and children and
global scale all the while maintaining implementation of sustainable
Cristiano Ronaldo for a sponsorship development measures.
with Nike, promoting his football its top market position in the sports
shoes; Mercurial Superfly VI Elite, for industry.
the World Cup 2018 knockout stage.
External Stakeholders
Nike’s external stakeholders include:
Customers, who afftect the
company’s revenue, having low
power and low control. They have
high interest in price, safety, quality
and services; their decision-making
is affected highly by celebrity
endorsements and sponsorships.
Governments in the countries it
operates in, in regards to its legal
actions such as tax revenues and its
Internal Stakeholders
Nike’s internal stakeholders include:
progress towards corporate social
Shareholders and investors who
responsibilty; maintaining policies
are mainly interested in high
and managing its permits.
returns on their investments and
Suppliers who manage consumer
employee satisfaction. These
demand of a global scale; most of
include board of directors who are
its shoes and apparel are sourced
responsible for the decision-
from China, Vietnam, Indonesia and
making of the brand.
Thailand.
Employees who are empowered Nike’s 2014 Shareholder annual meeting.
with a passion for seeking career
building opportunities with ethical
practices in the workplaces.
Driving Factors for Digital
Transformation
Many brands have turned to online platforms to further
their growth strategies - for Nike, its shopping app and
Train Club app had triple-digit growth during the
pandemic (Alexouda, 2023).
Nike’s in-app shopping feature allows for building
analytics to understand and improve customer
experience; it could forecast future innovations and
trends that customers might expect, such as 3D printing,
technology-advanced footwear and apparel, virtual
reality (Stangl, 2020).
In terms of sustainability; Nike has used technology
advancements in its manufacturing processes to
eliminate toxic chemicals and reposition its supply chain;
through the recycling of 54 million pounds of factory
scraps, Nike introduced Nike Grind, which reduced 43%
Potential Strategies
of its water use per unit. Supply chain - artificial Intelligence can be used to run
simulations of future supply chain operations to ensure their
Barriers: success especially in developing countries (Toorajpour et al,
2021). Nike could also implement a constant learning culture
Nike’s digital supply chain requires IT practices, however
for employees through empowered leadership in its supply chain
the risk of its learning-by-doing method could result in
to increase the chances of innovations (Solaimani and Van der
failure (Westerman, Bonnet and Mcafee, 2014), as seen
Veen, 2022).
through the launch of Digital Sports hub in 2010 that
Intellectual property - Using Machine Learning to sort data from
failed to meet the production margins and resulted in
the internet to identify potential counterfeit cases and take
80% of the workforce being cut off (Vogelsang et al.,
action to prevent ‘copycat’ products. Nike can use the
2019).
Blockchain and specific identifier tags on products so users can
Nike’s digitalisation is associated with higher demands,
identify if the product they may want to purchase is legitimate.
which may be challenging to continually meet because of
Supplier relations - Nike could make use of Software such as
its dependence on its digital practices. This may cause its
SAP Ariba which allows buyers and suppliers to have a one-stop
competitors to take advantage of Nike’s weakness; supply
platform where they can manage and adjust their needs and
chain agility to adapt and human talent to co-exist with
solve any issues which may be bothering either side.
machine power otherwise they will fall behind (Dhesi,
2021).
Nike relies heavily on 40 outsourced manufacturers even
though it digitalises its marketing and shopping
experience to its customers. It may still favour the low
costs of wages in under-developed countries, such as
Bangladesh and Indonesia, for its production.
Historically, Nike’s shoe-making process has also been
labor-intensive. Hence, this digital barrier suggests that
Nike may not always be reliable in its service to its
consumers.
References
Agrawal, A. (2014) ‘Managing raw material in supply chains’, European journal of operational
research, 239(3), pp. 685–698. Available at: [Link]
Alexouda, K. (2023). Digital Transformation of Business Models: Drivers, Enablers and Strategy.
Master of Science (MSc) in E-Business and Digital Marketing. International Hellenic University.
Microsoft Word. pp.23–27.
Chiu, W. and Keat Leng, H. (2015) ‘Is That a Nike? The Purchase of Counterfeit Sporting Goods
through the Lens of the Theory of Planned Behavior’, Choregia, 11(1), pp. 79–94. Available at:
[Link] Schallmo, D., Williams, C.A. and Boardman, L. (2017). Digital Transformation of Business Models — Best Practice, Enablers
and Roadmap. International Journal of Innovation Management, 21(08), p.1740014.
Dhesi, A.S. (2021). Sustaining Digital Transformation in the Post-COVID Era: Nike Case Study.
doi:[Link]
Massachusetts Institute of Technology, Sloan School of Management. Master of Science in Solaimani, S. and van der Veen, J. (2022) ‘Open supply chain innovation: an extended view on supply chain collaboration’,
Management Studies. Microsoft Word. Supply chain management, 27(5), pp. 597–610. Available at: [Link]
Fraunheim, E. (2016) Nike's Diversity Disclosure Is Just the First Step. Available at: Stangl, L.J.M. (2020). Digital Transformation in the Sports Apparel Industry: the Case of Nike, Inc. Master of Science in
[Link] (Accessed: 26 October 2023) Management (Entrepreneurship, Innovation & Leadership. Modul Vienna University. Microsoft Word.
Toorajipour, R., et al. (2021) ‘Artificial intelligence in supply chain management: A systematic literature review’, Journal of
Kissinger, D. (2016) Nike Inc. Stakeholders: A CSR Analysis. Available at: [Link]/nike-inc-
business research, 122, pp. 502–517. Available at: [Link]
stakeholders-csr-analysis. (Accessed: 21 Oct. 2023) Vogelsang, K., Liere-Netheler, K., Packmohr, S. and Hoppe, U. (2019). Barriers to Digital Transformation in Manufacturing:
Nanzip Bongdap, Nansel . “Nike’s Supply Chain Issues and Management - Financial Falconet.” Development of a Research Agenda. doi:[Link]
[Link], 22 July 2023, [Link]/nike-supply-chain- Westerman, G., Bonnet, D. and Mcafee, A. (2014). Leading digital: Turning Technology into Business Transformation. Boston:
issues-management/.\ Harvard Business Review Press.