Atiyyah Mabin, MBA’s Post

Here's a great article on the importance of sustained investments in innovation and partnerships, in order to drive profitable and differentiated growth. Looking forward to seeing how this plays out with Nike!

In today's fast-paced business landscape, it’s easy for even the biggest companies to lose sight of what truly matters. Such was the case for Nike, a giant now facing the consequences of prioritizing short-term gains over long-term sustainability. With declining performance and fractured relationships, the company is embarking on a trust-rebuilding mission under the leadership of its new CEO. Central to this turnaround strategy is the emphasis on strategic partnerships alliances built on trust, collaboration, and shared values. In an era where quick fixes often dominate, this move highlights why long-term solutions, grounded in mutual trust and forward-thinking, are key to navigating challenges and ensuring lasting success. https://lnkd.in/gyC4MHzH

Nike’s recent strategy shift is worth exploring. Nike’s comeback isn’t just about products or marketing campaigns—it’s about trust and strategic partnerships. In today’s competitive landscape, no brand can thrive alone, and Nike knows this better than anyone. After facing challenges in recent years, Nike has been actively building partnerships that go beyond sneakers and apparel. Take their collaborations with Apple and other tech giants—Nike isn’t just selling shoes anymore; they’re selling an experience, one that’s powered by innovation and connectivity. These partnerships enable them to leverage cutting-edge technology, creating a new world of possibilities for their customers. But here’s the thing: these partnerships aren’t just about adding new features. They’re about rebuilding trust—both with consumers and key stakeholders. Trust that Nike can continue to deliver, trust that they are still at the forefront of innovation, and trust that their brand values align with those of their customers. The question is, can these strategic alliances restore Nike‘s dominance and truly turn things around? It’s not as simple as aligning with other big names. The execution and the authenticity of these relationships matter more than ever. Will they deliver on this promise, or will these collaborations fall flat? Think developing strategic partnerships is easy? Think again. Drop your thoughts in the comments! #strategicpartnerships #partnerships #ceoinsights Capital Growth Partners

**Nike’s Comeback Depends On Trust And Strategic Partnerships** In the vibrant and ever-evolving world of sportswear, change is constant. Nike, a brand synonymous with innovation and performance, stands on the cusp of yet another pivotal moment in its storied history. With John Donahoe stepping down as CEO, the torch is passed to Elliott Hill, a leader with the potential to guide the brand to new heights — if he can learn from past lessons. John Donahoe's tenure at Nike brought pivotal changes, yet it also faced criticism. As he exits, the path forward for Nike is littered with both challenges and opportunities. Elliott Hill, who has been with the company for several decades, carries the immense task of ensuring that Nike’s legacy not only continues but flourishes anew. The question now is: How can Nike reclaim its dominant position in the market? The answer lies in strengthening trust and forging strategic partnerships. Trust, both within the organizational structure and with consumers, is the backbone of any successful enterprise. Nike must strive for transparency and authenticity, ensuring that every interaction reinforces its commitment to customers, partners, and employees alike. Strategic partnerships offer the next key to unlocking Nike’s potential. In a world where collaboration often yields greater results than isolated endeavors, Nike’s ability to partner with innovative tech companies, environmental organizations, and thought leaders can create synergies that propel growth. These alliances could foster advancements in sustainable practices, digital engagement, and product innovation, enhancing Nike’s standing in the global market. Learning from past errors is crucial. If Elliott Hill can pivot from the missteps experienced under Donahoe’s leadership, focusing on these core principles of trust and partnership, Nike might indeed see a resurgence. The road to resurgence is challenging, but with the right strategic focus, it is undoubtedly attainable. The global stage is watching as Elliott Hill steps into his role — will he embrace the opportunity and steer Nike towards a new era of success? Only time will tell, but the foundation for a comeback is firmly set. For more insights on this pivotal transition and Nike's strategy moving forward, read the full article by Kate Vitasek in Forbes: [Nike’s Comeback Depends On Trust And Strategic Partnerships](https://lnkd.in/gyC4MHzH). #Nike #LeadershipTransition #ElliottHill #StrategicPartnerships #Innovation #BusinessStrategy #TrustInBusiness #Sustainability #Forbes #JohnDonahoe

John Donahoe's leadership at Nike offers a lesson in strategy missteps. Here are the key takeaways: 1. Product Innovation Stalled: Focusing on existing products killed new ideas. 2. Short-Term Wins Over Long-Term Growth: Brand-building took a backseat. 3. DTC Overdrive: Cutting out wholesalers hurt sales and presence. 4. Misreading Covid: Betting on e-commerce trends that didn’t last. Lesson: stay focused on core values, maintain balance, and don’t overestimate temporary shifts

Long-term wins require long-term thinking.    Nike's recent struggles under John Donahoe offer a great lesson on leadership and strategy.    Donahoe, coming from a finance background, led Nike down a path that prioritized cost-cutting over innovation and partnerships. As a result, Nike’s stock value took a massive hit, losing $28 billion in value.   This is a classic example of what happens when leadership focuses solely on short-term financials, at the expense of long-term relationships and innovation.    Our research at the University of Tennessee shows that when companies like Nike move away from strategic partnerships with suppliers and instead treat them as mere vendors focused on price, they often lose out on innovation, better service, and ultimately profits.   Nike’s early success was built on deep, collaborative relationships with key partnerships. That’s what propelled them to become a global icon. I believe in the power of win-win partnerships, where both companies and suppliers can thrive together. By doubling down on strategic partnerships that are based on relational contracts, companies can unlock the “Power of And” – lower costs AND better products AND higher supplier profits.   Hopefully, Nike will find its way back to what made them great: innovation, brand trust, and strong, long-term partnerships. #Leadership #Innovation #Collaboration #Strategic #Partnerships #Vested

Once the darling of business cases and keynote speeches, what's up with Nike? Graham Robertson digs in: "In an effort to cut out middlemen and capture higher margins, Nike reduced its support for traditional retailers, focusing instead on selling through its own stores and digital platforms. While DTC initially promised to boost profits, the strategy lacked the necessary infrastructure and market understanding to succeed." Looks like Nike got a bit greedy. While some businesses can be born out of "eliminating the middle-man" ( a line that Dell used in its infancy), completely transforming an entire business model isn't as easy as just adding a "buy from us" button on an e-commerce enabled website. There are legacy relationships, cultural behaviours and habits, and an entire history of institutional knowledge about what works and what doesn't. Graham does a great deep dive on the Nike problem. Highly recommend.

Interesting to see Nike in need of Strategic Renewal. According to the WSJ "Since the pandemic, Nike has lost ground in its critical running category while it focused on pumping out old hits and preparing for an e-commerce revolution that never came." The CEO had the support of the board and was implementing a strategy recommended by his board, so what happened? Nike has only had 4 CEOs in it's history. As we talk about in Syllabus all the time, legacy leaders can drive incremental change but new leaders are expected to drive exponential change. These unreasonable expectations lead to high failure rates of new leaders. So if incremental is not enough, but exponential is too much, what is the goldilocks expectation for new leaders? Strategic Renewal. New leaders should be expected to uncover new applications for an organizations core fundamentals. In the case of Nike, the core fundamentals were neglected. In running, where they invented the super shoe and have dominated for 40 years, they started to lose their innovative edge to On, Hoka and even Saucony. I see more endorphin speed 3s than I do Alphafly 3s. The legacy products, like Dunks and Jordan Brand supported sales but do not create a foundation for long term sustainable growth. Beyond a back to basics approach on athletic performance, a growth platform I am excited about is - Building Out the Experience. Nike has best in class digital app experiences, in both Nike Training Club and Nike Run Club. What other consumer brand can you think of that has apps that do more than act as fancy catalouges? Both NTC and NRC have devoted fan bases that leverage them to be fitter and healthier. They unlock the inner athlete. Organizations are all trying to build direct channels to their consumers. They want to own the relationship, and not have it mediated by other retailers. In Nike's case this led to a pullback in the number of wholesale accounts and places where consumers could find their product. While this supports a direct channel, it does not create a real direct relationship. Apps like NRC and NTC do. As Nike explores new ways to grow, it would be helpful to keep this in mind. https://lnkd.in/d4w-HXra

In this recent piece, Mark Ritson critiques Nike's marketing strategies, highlighting key missteps that may have impacted brand perception and sales. He emphasizes the importance of cohesive messaging and strategic alignment, warning against overly ambitious growth targets that deviate from core values. Ritson also discusses how effective communication and understanding customer needs are vital for maintaining brand loyalty. For brands aiming for success, he advocates for a return to fundamentals and strategic focus. https://lnkd.in/ggyNCQ5H #MarketingStrategy #BrandManagement #CustomerLoyalty #BusinessGrowth #MarketingMistakes #StrategicThinking #BrandPerception #Leadership #MarketingInsights #Consumerinsights

What Does Nike’s New CEO Need To Do? Nike Inc. ousted beleaguered CEO John Donahoe, bringing 32-year Nike veteran Elliott Hill out of retirement to recapture market share lost after what’s seen as a failed direct-to-consumer push. What should Hill's near-term priorities be? Read the article & panel discussion here: https://lnkd.in/e5vUXF-z Shepard (Shep) Hyken "I like what Nike is doing. They do not need to reinvent themselves. They need to go back to being the company they used to be. They were always innovative." Neil Saunders "It is notable that Nike brought back a company veteran. It symbolizes a desire to get Nike back to where it used to be: an innovator, storyteller, and strong partner to retailers." Brandon Rael "Nike shares jumped this morning as investors responded positively to a reshuffling at the sneaker giant’s top leadership post. Investors hope incoming CEO Elliot Hill can reverse the stock’s fortunes."