How Nike Ran Into Trouble

Nike, once a dominant force in sportswear, faces challenges as its market value declines and competition intensifies. The company's pivot to digital sales during the pandemic led to a reduced retail presence, allowing rivals like Adidas, Hoka, and On to gain ground. Despite setbacks, Nike remains a powerful brand, aiming to rebuild retail relationships and innovate in running and lifestyle segments. The upcoming Summer Olympics are crucial for showcasing Nike's vision and regaining market strength.

What has been a significant challenge for Nike in recent years?

• Failure to sponsor major athletes

• Over-reliance on physical stores

• Lack of innovation in technology

• Decline in market value and increased competition

What was a key focus of Nike's strategy under CEO John Donahoe?

• Expanding physical retail stores

• Modernizing online operations

• Increasing sponsorship deals

• Developing new athletic apparel

How did Nike's digital strategy impact its relationship with retail partners?

• Increased reliance on retail partners

• Led to exclusive retail agreements

• Reduced shelf space for Nike products

• Strengthened partnerships with retailers

What was a consequence of Nike's rapid shift to digital sales?

• Higher profit margins

• Loss of shelf space to competitors

• Increased market share

• Improved customer satisfaction

What is a key component of Nike's recovery plan?

• Focusing solely on online sales

• Rebuilding relationships with retailers

• Expanding into new sports

• Reducing marketing expenses

Why are the upcoming Summer Olympics important for Nike?

• To showcase new product lines

• To launch a new marketing campaign

• To increase sponsorship deals

• To communicate their vision of sport

What area is Nike planning to focus on to regain its market position?

• Casual wear

• Running and lifestyle products

• Exclusive retail partnerships

• Formal footwear