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NIKE – GLOBAL WOMEN’S FITNESS I. DISCUSSION QUESTIONS, CASE INTRODUCTION AND KEY POINTS Introduction The case opens with Nike’s announcement of a major corporate reorganization, which would shift the company’s focus from a product orientation to a category-driven approach. These new areas were expected to account for more than 90% of Nike’s business moving forward. The goal of the proposed reorganization was to take a more consumer-oriented approach to the market, optimizing the company’s activities to give customers a holistic collection of everything they want and need in a particular category. The case focuses on Nike’s new Women’s Fitness segment and tracks the process of moving various pieces of business into alignment with the new category-driven approach. The reorganization is outlined in detail. What does the experience in Women’s Fitness foreshadow about Nike’s shift to a category-driven approach? How will the other categories avoid the pitfalls that Women’s Fitness encountered? Will Nike be able to institutionalize the process and increase cross-functional efficiency? Summary of key learning points and strategic issues 1. What are the factors a firm must consider when reorganizing its business model? 2. What is/are the best way(s) to target a specific segment? What qualitative data do you need to gather? 3. How do business cycles affect the ongoing enterprise? 4. Who is spending money in your target market? How much are they spending? How may you gain a greater share of their wallet? 5. Which geographic markets are mature? Which present opportunities for growth and expansion? 6. In context of Porter’s 5 Forces and the footwear, apparel & equipment industry, where is Nike strongly positioned? Where are they weak? Discussion Questions 1. Perform a STEEP analysis to understand the general environment facing Nike. How will the firm be affected by external factors? 2. Use Porter’s Five Forces Model to analyze the footwear, apparel & equipment industry in the US. Given this analysis, is the industry attractive or unattractive? 3. Who are Nike’s main competitors? How do they measure up against these competitors? 4. What are Nike’s main capabilities? Do they have a core competence? 5. Create a SWOT analysis to understand Nike’s strengths and weaknesses. Does Nike have a sustainable competitive advantage? Is so, what is the source? What about Nike’s evolution and current business strategy may pose problems going forward? 6. What is Nike’s business-level strategy? Is the strategy appropriate to offset the forces in the industry? Do you recommend any changes and/or foresee any challenges? NIKE | 1
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NIKE – GLOBAL WOMEN’S FITNESS II. EXTERNAL ENVIRONMENT ANALYSIS Summarize the external environment, including conditions in the general, industry, and competitor environments. a.
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This note was uploaded on 10/21/2011 for the course ACCOUNTING 101 taught by Professor Fenjimo during the Spring '11 term at College of Southern Idaho.

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