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What Really is Strategy? Part 3 Lacing Up with Nike Nike's iconic logo is synonymous with athletic excellence, but have you ever considered the strategic genius behind its success? In the 1960s, University of Oregon track coach Bill Bowerman and his former student Phil Knight founded Blue Ribbon Sports, which would later evolve into Nike. *Read the Book - Shoe Dog Initially, they served as distributors for the Japanese shoemaker Onitsuka Tiger. However, Bowerman and Knight envisioned something much bigger. While other brands focused on technical specifications, Nike asked, “What if we make running shoes not just functional, but fashionable & desirable?” This is similar to what Apple did to the smart phone. So they decided to differentiate themselves in the follow ways; 1. Design-Centric Approach Nike invested significantly in sleek designs, vibrant colours, and bold branding, turning athletic wear into fashion statements. This shift made their products not just gear but an expression of identity. 2. Emotional Storytelling Nike masterfully crafted narratives around athletes, music, and cultural movements, tapping into consumers' emotions and aspirations. Their campaigns resonate with personal and societal challenges, creating a deeper connection with the audience. 3. Innovative Marketing Nike pioneered memorable ad campaigns like “Just Do It” and “Dream Crazy,” positioning itself as a cultural force. These slogans inspired action and resonated beyond sports, embedding the brand into the fabric of everyday life. Nike’s strategy wasn’t about being the best; it was about being distinct. Strategy is About Creating Difference, Not Just Superiority: It’s about carving out a unique space in the market. Nike's success illustrates that effective strategy resides in bold, unapologetic DECISIONS that leave competitors hesitant to follow. What radical differences can your organisation embrace to soar to new heights? #kuhletrainers Strategy, Team Building, Peak Performance, Sales, Customer Service and other tailored training - Training is our Business.

Are You a Tech Company? HELLO Nike It’s ashame we need to relearn the same lessons over and over. When John Donahoe was selected as CEO Nike it was hard to believe how it could end well. The latest lawsuit tells you how it’s going. Bringing in a technology-oriented leader to help modernize a non/tech oriented company is a recipe for boondoggle. All of the tactics are new adventures. DTC! Apps! Fun drops! Reading about strategy in an HBR article is enough reason for a direction. The first thing any new CEO needs to do is determine the answers to these questions: - who are our customers? - what is our product? - what is our offer? - how do we make money? If your primary innovation is not related to your product or offer, no amount of distractions or side projects will save you. If you bring in someone from outside your industry, remember they are making mistakes on your time. In this case the DTC whipsaw. But even that is not the #1 mistake. Nike forgot its customer. Nike’s pinnacle was Air and Jordan and the simple notion that if you have a body, you are an athlete. Innovative changing product at the core with an aspirational message. It’s truly sad to hear the Nike - of all companies - missed the surge in running. Literally it should not be possible. But here we are playing catch-up. The two primary lessons are simple - It matters who the leader is. And it matters where you apply your innovation dollars. If you’re a shoe company, remember what Spike Lee / Mars Blackmon said: “THE SHOES. It’s gotta be the shoes.”

In business, strategy isn’t just an add-on—it’s the foundation that supports everything else. You wouldn’t build a house without a blueprint, so why run a brand without a solid strategy? When strategy is treated as an afterthought, even the most iconic brands can stumble. Look at Nike. For years, Nike was the undisputed leader in innovation, pushing the envelope with cutting-edge products and bold marketing campaigns. It wasn’t just about sneakers—it was about a lifestyle. Nike’s strategy made it a symbol of American success. But in recent years, under the leadership of John Donahoe, Nike shifted its focus heavily toward digital transformation and direct-to-consumer sales. While this helped Nike navigate the growing e-commerce space, critics argue that this shift sidelined some of the core strategies that made Nike a cultural icon. With reduced emphasis on traditional marketing and retail partnerships, Nike’s momentum has slowed, leaving many to wonder if they’ve lost sight of what made them great in the first place. Strategy is the backbone of long-term success. When it’s sidelined, even the best brands can lose their way. Nike’s story is a reminder that while innovation is crucial, abandoning the foundational strategies that built your brand can have serious consequences. If you want your brand to thrive, don’t treat strategy as the side dish—make it the main course.

The key case study question is missing in what sounds too much like a bad McKinsey or BCG sales pitch by John Donahoe to deny his biggest blunder. I. DRUCKER'S 2 QUESTIONS: Thanks to Peter Drucker, we learned to ask two very basic questions. The key is to ask them in the right order, as follows: . First, am I doing the right thing? . Second, am I doing things right? Donahoe only asked the second question. II. WRONG MARKET: The problem with Nike is that it has been doing the wrong thing, by literally positioning itself in another market than its own market. Instead of the sporting goods market, it chose to compete in the luxury goods market, against the likes of an LVMH or Kering. Moreover, in this prohibitively overpriced market, Nike has absolutely no competitive advantage whatsoever. III. WRONG CHANNEL: Instead of increasing the number of wholesalers and retailers, he should cut it by half at least and refocus on another Drucker insight, the product-market channel fit - Product: come back down to earth and just make real sports shoes (where it does have a competitive advantage). - Market: position at the higher-end with an aggressive promotional strategy to lure the mass consumers from the mid-market. In other words, come back to Phil Knight's initial strategy - Channel: play it tight by reducing the overbloated number of channel partners of all stripes. Become a real retailer with a few owned stores only. Stop making fashion statements. Innovation is a serious business. IV. WRONG STRATEGY: Wrong product, wrong market, wrong channel. Takeaway: you can be as smart as hell and still get it wrong.

How NIKE Turned Crisis into Triumph: A Story of Resilience and Innovation 🔥 Introduction: NIKE, synonymous with sports excellence, once faced a severe crisis in the late 1980s. Discover how they transformed their downfall into global dominance! 🏃♂️👟 📉 The Crisis: In the late 1980s, NIKE's earnings plummeted by 29%. The future looked bleak. 📆🔍 🎯 Phil Knight's Vision: NIKE's co-founder believed in marketing and innovation. His relentless drive and vision became the brand's foundation for recovery. 💡👓 🏃♂️ Emotional Marketing: The iconic "Just Do It" campaign launched in 1988, inspiring millions to strive for greatness. This powerful message resonated on a personal level. 🎥🔥 🏅 Celebrity Endorsements: Partnering with athletes like Michael Jordan turned the Air Jordan line into a cultural phenomenon. Jordan’s on-court success translated into off-court sales. 🏀👟 📊 Innovation in Products: Continuous innovation with products like Air Max (1987) and Nike Shox (2000) kept NIKE ahead of the curve, attracting a loyal customer base. 🚀👟 🌍 Global Expansion: By the 1990s, NIKE aggressively expanded internationally, tailoring campaigns to resonate with local cultures and building a global presence. 🌐🏢 💬 Storytelling: Campaigns like “Find Your Greatness” (2012) and “Equality” (2017) connected emotionally with audiences, solidifying NIKE's brand identity. 📖💪 📱 Digital Transformation: NIKE embraced the digital age with apps like Nike Training Club, enhancing customer experience and engagement. 📱🔄 📈 Financial Turnaround: By 1995, NIKE’s revenue soared to $4.76 billion, with the stock price increasing over 900% from 1984 to 1996. 💹💵 🏆 Cultural Impact: NIKE became a part of pop culture, symbolizing determination and success through collaborations with artists and designers. 🎨🎤 🔄 Resilience: NIKE's journey is a testament to strategic vision and resilience, transforming a brand through innovation and emotional connection. 🔄💪 📝 Conclusion: Today, NIKE stands as the largest sportswear brand with a market cap of over $150 billion. Their story is an example of how vision, marketing, and emotional connection can transform a brand. 🌟🌍 📚 Lessons Learned: NIKE teaches us the importance of staying true to a vision, continuous innovation, and understanding consumer emotions. What will you take from their story? 🚀📘 Follow for more business success stories and strategies. What other brand stories would you like to learn about? Comment below! 💬👇 --- #NIKE #BusinessStrategy #Marketing #Innovation #Resilience #SuccessStories #BrandBuilding

📌 The famous memo with Nike's 10 principles: Here's the little-known story ↓ → The memo was written by Robert Jey Strasser. → Rob was born in New York, facing economic challenges. Despite showing an inclination towards creativity, he decided to pursue his other passion. → The business world would lead him to graduate as a Lawyer from UC Berkeley Law School. → His career as a lawyer came to an end when representing Nike (then known as Blue Ribbon Sports), he caught the attention of Phil Knight. → Although he possessed innate creative skills, his determination and passion for design led him to study at the Rhode Island School of Design. → His revolutionary approach to marketing and product design was key in transforming Nike into a global sports giant. → Especially in the launch of the Air Jordan line and the creation of the popular memo. → However, in 1987, Strasser left Nike due to ideological differences with Phil Knight, and alongside Peter Moore, he co-founded the consulting firm Sports Inc. → Although his departure from Nike marked a shift in his career, his influence in the industry remained undeniable. → His trajectory took an unexpected turn when he was recruited by Adidas to revitalize the brand, which at that time was facing difficulties. → His strategy focused on reducing the brand to its iconic core resonated with consumers, helping to revitalize Adidas as a major competitor to Nike. → Unfortunately, his life was cut short at the age of 46 by a car accident in 1993, leaving a lasting legacy in the footwear and sports design industry. ♻️ Share if it inspired you with someone else. ✍️ Comment on which principle you apply most in your daily decisions. 👉 Discover more ideas about marketing, advertising, investments, and sports technology on Meca Sports! Ignite Your Spirit! ✨

Building a consumer business. The simplest way to look at building a consumer brand is the 2 step framework. Do you have a right to play? The right to play within any category comes from having differentiated products. Not superior products, differentiated. Example, if everyone is selling 25g of protein per serve, 26g or even 27g is not really differentiated. Unless you discover an earth shattering consumer need for the additional. People can just have a little more than a scoop! But clear protein that looks like water, now we're talking. Do you have a right to win? The right to win comes from building a brand. And what building a brand means is possibly the most convoluted of subjects. People will start wanting to be the Nike's and Apple's of the world. Fact, Nike for the longest was making superior shoes for track and field athletes, so that they could run faster. None of the "just do it" etc. Just shoes for track and field athletes. First start by telling people who you are and what you do. Find a single message and keep repeating it, also, it better be a message that people care about. Then later, once you have a real business, try being the Nike of your category. That's it. Just these 2 things, well, not really. But its a good start. #d2cbrands #brandbuilding #consumerbrands #scaleup

Nike is losing ground, having lost 23% of its market share over the past year. Here’s why: Wrong Timing During a Recession: With consumers becoming more price-sensitive, Nike’s customer loyalty strategy is not working Brand Guidelines: Nike has shifted from its core identity as a sports brand, known for categories like football and basketball, to a fashion brand by introducing lines similar to H&M for men, women, and kids. Excessive Spending on Performance Marketing: Nike has reduced its sponsorship of events, focusing too much on performance marketing. Attempting to Operate as a D2C Brand: Nike has significantly cut distribution network, which has allowed newer brands to capitalize on the opportunity no go back Nike as of now Nike is an huge brand with billions of dollars at its disposal for testing strategies. You can learn from their recent missteps and apply these lessons to your own startup, potentially turning them into a success. Follow Yug Gupta for more insights like this.

What is fascinating about the activewear industry is that it is expected to grow faster than fashion overall in the coming years, except marketing campaigns are falling flat and innovation seems to be the only answer. But is it? A consumer is savvy, yes - but understanding the kind of innovation they find valuable is possibly more important than just throwing 'let's just make leggings out of moon dust' levels of innovation at the problem. The play here is understanding sub culture and cultural nuance within key activewear cohorts and providing them with the best possible answer to their problems in the form of new product development. Shared by Amy-Lee Cowey-Small, Director Brand & Digital Growth, Mash Brands

“Surely every brand has to die sometime!” If left to their own devices, most brands inevitably find themselves in a state of decline as they lose relevance or competitors steal market share. Imagine if the Nike's brand had been left as it started and Nike's were still marketed as running shoes for students at the University of Oregon – would the brand still be as successful as it is today? But brands don't have to die. Unlike products, there is no defined life cycle for a brand and they can, and should, live forever. Brands are precious – they are a company's most valuable asset – and by carefully controlling and managing them, in line with the brand strategy, they can be protected from decline and nurtured into growth. That is the ultimate purpose of brand.