Nike's Global Women's Fitness Business: Driving Strategic Integration
Case Brief
Sim Chok Hao Javis
12412242
Overview Nike was a company started in 1972 by Bill Bowerman and Phil Knight. Nike's mission is "to bring inspiration and innovation to every athlete in the world. Nike's main focus was originally centered around shoes: they designed, produced and sold shoes. By 2006, Nike became internationally established and gross international and domestic sales had hit a high of $15billion. Then, 66% of the business was footwear, 28% was apparel and 6% was equipment - the three of Nike's major broad product categories. In the 1990s, Nike started contemplating the idea of creating a women's division and hence gave out endorsements …show more content…
Nike's business was initially centered around a product-oriented approach, with three primary business units focused on footwear, apparel and equipment. Each product market was working on separate timelines and calendars. Global programs and regional teams did not always share similar priorities. The was an evident lack of communication between and within business units. Nike believed that adding women's sport and fitness into its male-dominated culture would only cause complexity and it already had a complicated organizational structure. There was also a need in finding the right people who could fulfill specific roles within the core …show more content…
This new strategy aims to provide women's fitness with its unique category of focus, a shift away from how the focus was on product divisions before, ie. footwear, apparel, equipment. This strategy will essentially enable the potential vertical integration of all women's fitness products within its segment instead of having product development processes that are completely independent of one another. This enables each segment to streamline its production process and define set objectives to work towards, ie. a vision, that can be consistent throughout each segment. This new strategy therefore puts Nike in a powerful position to capture market share in the up-and-coming women's fitness market. Domestically, the data all point towards increasing female participation in fitness and therefore resulting in a corresponding increase in fitness wear demand. In foreign, emerging markets, women are also increasingly engaging in sports and physical activity whereby it might not have been the cultural/societal norm for them to have done so in the past, signaling huge potential in the women's fitness industry. At the time of the case study, women's fitness was a $6.1billion global market with projections of huge growth. And this huge potential for growth justifies Nike's attempt at redefining its
Case Brief
Sim Chok Hao Javis
12412242
Overview Nike was a company started in 1972 by Bill Bowerman and Phil Knight. Nike's mission is "to bring inspiration and innovation to every athlete in the world. Nike's main focus was originally centered around shoes: they designed, produced and sold shoes. By 2006, Nike became internationally established and gross international and domestic sales had hit a high of $15billion. Then, 66% of the business was footwear, 28% was apparel and 6% was equipment - the three of Nike's major broad product categories. In the 1990s, Nike started contemplating the idea of creating a women's division and hence gave out endorsements …show more content…
Nike's business was initially centered around a product-oriented approach, with three primary business units focused on footwear, apparel and equipment. Each product market was working on separate timelines and calendars. Global programs and regional teams did not always share similar priorities. The was an evident lack of communication between and within business units. Nike believed that adding women's sport and fitness into its male-dominated culture would only cause complexity and it already had a complicated organizational structure. There was also a need in finding the right people who could fulfill specific roles within the core …show more content…
This new strategy aims to provide women's fitness with its unique category of focus, a shift away from how the focus was on product divisions before, ie. footwear, apparel, equipment. This strategy will essentially enable the potential vertical integration of all women's fitness products within its segment instead of having product development processes that are completely independent of one another. This enables each segment to streamline its production process and define set objectives to work towards, ie. a vision, that can be consistent throughout each segment. This new strategy therefore puts Nike in a powerful position to capture market share in the up-and-coming women's fitness market. Domestically, the data all point towards increasing female participation in fitness and therefore resulting in a corresponding increase in fitness wear demand. In foreign, emerging markets, women are also increasingly engaging in sports and physical activity whereby it might not have been the cultural/societal norm for them to have done so in the past, signaling huge potential in the women's fitness industry. At the time of the case study, women's fitness was a $6.1billion global market with projections of huge growth. And this huge potential for growth justifies Nike's attempt at redefining its