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Case Analysis Nike Learns How to Change Nike's success during the 1990s resulted in overconfidence among its managers and designers. New competitors began to target specific market segments. Nike's designers failed to notice current consumer preferences. As a result, in 2000 Nike's sales and profits fell sharply. CEO Phil Knight brought in managers from outside the company to change the way decisions were made. To quickly widen Nike's product line, Knight took over and purchased small specialized companies. Traditionally Nike's designers all grouped together in one large design department. Knight split the design team into different teams; each team would focus on developing unique products to match the needs of customers in its assigned market segment. The aim was to build diversity into Nike's decision making and create teams of experts who were attuned to changing customer needs in their segments of the sports product market. Nike's new approach to decision making worked; most of its new shoes are now leaders in their market segments and its sales and profits have soared in the 2010s.
Questions:
1. How did Nike change the way it made decisions and introduce new products? 2. In what ways could Nike use the change techniques discussed in this chapter to find ways to improve its effectiveness and competitive advantage? 3. Read articles similar such as https://www.cips.org/supply-management/news/2022/january/how-nike-transformed-supply-chains-to-survive-covid/ 4. What can you report on this company (today) and make a recommendation on the issue (s) that you locate?
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