A PIONEER OF DISRUPTIVE INNOVATION
Special Feature
Nike
A PIONEER OF DISRUPTIVE INNOVATION 2
Issue 079 · Business Enquirer Magazine
Business Enquirer Magazine · Issue 079
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PROJECT DIRECTED BY
WRITTEN BY
Jamie Waite
Jay Benmehidi
Special Feature have captured the hearts and minds of a global audience. However, in a world that is fast-digitalising, Nike is transitioning from a marketing-first business into an aspiring tech powerhouse, a process that, to say the least, represents a challenge. All of this plays to Donahoe’s strengths. He has proven his executive leadership credentials consistently over the past two-decades in this area, and his reputation as a disruptive innovator capable of bringing about real transformative change is well-earned. Rather than selling shoes primarily in retail outlets, Nike is pushing to sell more products online and via smartphones, the upshot of which is that Nike is enjoying a financial surge now that the middleman is no longer between sales. Additionally, Nike’s legendary marketing function is gaining greater control and oversight of every aspect of the customer journey, from how its customers buy shoes, from the first advertisement to the final purchase, whilst at the same time gaining Nike essential data that will enable the company to better understand its customers on a deeper level.
J
ohn Donahoe is President and CEO of the iconic footwear and sports apparel brand, Nike Inc. Prior to being appointed CEO in 2020, he has served on the company’s board of directors since 2014. Since taking the reins of the world’s leading sportswear company, Donahoe has been responsible for ensuring the continued growth and success of both the Nike Brand and Nike’s global business portfolio, which includes household names such as Converse and Jordan Brand.
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Issue 079 · Business Enquirer Magazine
“We know that digital is the new normal. The consumer today is digitally grounded and simply will not revert back,” said Donahoe. He continued: “In this world where consumers want a seamless digital and physical experience, they want to know who they are, they want consistent premium modern experiences, the North America retail market today is furthest away from that,” he said on the call. “And so, that’s what’s driving our OneNike marketplace, where we lead with digital, directly connect with them for all the reasons we have described, we then follow with our NIKE Direct where we have very premium experiences that are often digitally infused. And then we work with fewer strategic partners who see the world the same way we see the world, and want to provide the consistent experiences for our consumers, want to provide the same level of knowledge and understanding so consumers know who they are.”
A veteran tech executive, Donahoe and Nike might appear an unlikely match at first glance, however it is a union that makes a lot more sense when you factor in Nike’s recent strategic repivot which has seen the company undergo an ambitious digital transformation. Nike is a champion brand builder, famous for slogans like ‘Just Do It’ and ‘There Is No Finish Line’ - unforgettable catchlines that are so much more than mere advertisements; its unparalleled storytelling and slick marketing campaigns that
Business Enquirer Magazine · Issue 079
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Special Feature
Nike
Nike’s powerful ”For Once, Don’t Do It” campaign invert’s its signature slogan.
Thus far, Donahoe’s root-and-branch tech-centric restructure has borne fruit: in its latest quarterly earnings report, Nike announced it had grown online sales by 59%. Prior to coming onboard with Nike, John served as President and CEO of the cloud management company, ServiceNow, the global e-commerce giant, eBay, and he continues to serve as Chairman of the Board at PayPal. Earlier in his career, he worked for Bain & Company for almost 20
years, becoming the firm’s CEO in 1999. A former basketball player and lifelong sports fan, John received an MBA from Stanford Graduate School of Business and a bachelor’s degree in economics from Dartmouth College. What is there to say? There are brands, and then there is one of the most successful brands on Earth, Nike. The sportswear titan’s iconic swoosh logo, as ubiquitous as the golden arch of McDonalds and the red-white swirl of Coca-Cola, has adorned the world’s greatest athletes, the most famous celebrities, and millions upon millions of loyal customers – for businesses looking to grow their brand, Nike sets the standard on how best to do so.
Nike’s 2018 ”Just Do It” campaign, with Colin Kaepernick.
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Issue 079 · Business Enquirer Magazine
From the humblest of beginnings - Nike made US$8,000 profit in its first year of business –the company has grown into a household name valued at US$34.7 billion in 2020. Nike continues to sell sportswear for pro athletes, but other product lines such as the streetwear and sports equipment for which it is so famous have grown exponentially over the years, due to Nike’s smart marketing and global strategies. Indeed, Nike’s legendary collaborations with sporting legends such as basketball all-timegreat, Michael Jordan, who it worked with to create the Air Jordans that have sold by their million since 1984, are the perfect example of Nike’s marketing genius. Nike has also collaborated with more recent sporting icons, including Cristiano Ronaldo, Roger Federer and Tiger Woods, and made kits and trainers for the greatest sports teams around the US and the globe.
When Nike began branching into casual and streetwear, the brand also collaborated with celebrities too, who in today’s social media-centric world arguably have more influence on the trainer market than athletes. Nike’s signature slogan has been the same for more than 30+ years – Just Do It, demonstrating the value of consistency in their branding and global marketing strategies. Another key facet of Nike’s success is its drive to continually innovate. It’s essential for any business to constantly push boundaries and stay with the times, and Nike has very much been at the vanguard of our fast-changing and increasingly inclusive world. Many companies have moved into creating eco-friendly products, for example, but Nike do this and more. Also, Nike has long been a driving force in the push to empower women, something that has been reflected in their branding
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Nike and marketing campaigns for many years. Nike improves trainers with new technology, stays on trend with the latest fashion and places great emphasis on emotional engagement visual identity. It is for good reason the company is so memorable. As Nike evolves and transforms in an increasingly digitalised age, it will continue to stay true to the robust set of core values that has underpinned the company’s incredible success. Like the Greek goddess of victory it is names after, Nike will be a force that inspires and innovates on a global scale, maintaining its standing as both a socially conscious force for good in the world and go-to first-choice as far as on trend sports apparel is concerned.
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Issue 079 · Business Enquirer Magazine