MIS ASSIGNEMENT

DIGITAL TRANSFORMATION STRATEGY OF

NIKE

Submitted By
Aahaan Naik (UR23001)
Abhisekh Pattanaik (UR23003)
Shakti Prasad Sahoo (UR23047)
Shardul Trivedy (UR23048)
Sidhant Behera (UR23052)
Sridhar Chatarjee (UR23056)

Guide
Prof. T. Kumar

School of Rural Management (SRM)

XIM University
INTRODUCTION OF THE COMPANY

Nike Inc., founded in 1964 by Bill Bowerman and Phil Knight, and since then, it has
expanded from a tiny company to become one of the most recognizable and prosperous
sportswear and athletic footwear brands worldwide. Focusing on innovation, technology, and
athletic performance, Nike has made a name for itself in the sportswear market as a global
leader.
The history of Nike begins at the University of Oregon, where middle-distance runner Phil
Knight and track and field coach Bill Bowerman partnered because of their love of shoes and
athletics. They formally established Blue Ribbon Sports (BRS) in 1964, bringing Onitsuka
Tiger athletic shoes from Japan to the United States market.

During the initial years of the company, Knight used to sell shoes at track meets from the
trunk of his car. But their dedication to quality and invention soon won them recognition, and
in 1971 BRS changed its name to Nike in honour of the Greek goddess of triumph.

NIKE’S VISION, MISSION AND GOALS

Vision:

Nike's vision statement is to "Bring inspiration and innovation to every athlete* in the world."
The asterisk (*) denotes Nike's famous expansion of the definition of an athlete to include "if
you have a body, you are an athlete." This inclusive vision reflects Nike's commitment to
inspiring individuals of all backgrounds and abilities to pursue their athletic potential and
lead active lifestyles.

Mission:

Nike's mission statement is "To bring inspiration and innovation to every athlete* in the
world. *If you have a body, you are an athlete." This mission statement aligns with the
company's vision and emphasizes its dedication to delivering innovative products,
experiences, and services that empower athletes and individuals to perform at their best.

Goals:

i) Innovation:
Nike's dedication to pushing the limits of design, technology, and performance in
sportswear and athletic gear is fuelled by their fundamental value of innovation. In order
to satisfy the changing needs of athletes and customers, the objective is to continuously
innovate and enhance products.

ii) Performance:
From clothing and footwear to equipment and accessories, Nike is committed to
improving sports performance through its products. The objective is to create state-of-the-
art products that maximize usefulness, comfort, and performance in a range of sports and
activities.
iii) Inclusivity:
Nike views inclusion as a fundamental principle, encouraging accessibility, equity, and
diversity in both sports and other endeavours. The intention is to establish a welcoming
atmosphere in which each person is encouraged to contribute, succeed, and express their
individuality.

iv) Sustainability:
Environmental stewardship and sustainability are Nike's top priorities. Reducing the
company's environmental impact, advancing ethical sourcing and production methods,
and developing sustainable materials and procedures are the objectives.

v) Community Impact:
Nike is dedicated to using sports, education, and social activities to have a beneficial
impact on communities. The objectives are to uplift and empower people, foster young
development, encourage active living, and advance social progress and global well-
being.

INDUSTRY STRUCTURE

Understanding the larger backdrop of the sportswear business is crucial before digging into
Nike's particular industrial structure. Ankle boots, accessories, and athletic apparel for a
range of sports and fitness pursuits are produced, marketed, and designed by businesses in the
sportswear industry. Brand awareness, supply chain efficiency, product innovation, and
marketing tactics are some of the variables that drive competition among major players in this
market.

The fierce rivalry between major competitors in the sportswear sector as they compete for
customer attention and market share makes the industry extremely competitive. Rivals
frequently use marketing efforts, celebrity endorsements, performance technology, and
product design to set themselves apart. Main rivals of Nike, including Adidas and Under
Armour, target similar client categories and have comparable product lines.

NIKE’S POSITION IN THE INDUSTRY

Nike has a substantial market share in the sportswear sector that it continuously holds.
According to recent research, Nike holds the greatest market share in terms of footwear sales
with an estimated market share of between 27% and 30% in the worldwide athletic footwear
market. Nike is a strong competitor with Adidas and other big companies in the clothing
business, where it also has a sizable market share.

Nike's standing in the industry is largely dependent on the strength of its brand. The company
has established a strong global brand identity thanks to its recognizable swoosh emblem,
creative product designs, and effective marketing efforts. Nike is a well-known and appealing
brand to a wide range of consumers, including athletes, sports fans, and style-conscious
shoppers.
POWER OF SUPPLIERS

In order to source raw materials, manufacture components, and produce its products, Nike
depends on a global network of suppliers. A few examples of these characteristics are
supplier concentration in the market, which affects suppliers' power. Suppliers that control a
large portion of the market or have few options may be able to negotiate better terms and
conditions for the supply chain, including price. Switching costs are the fees and difficulties
incurred while transferring providers. Switching suppliers can be difficult and expensive in
sectors like sportswear manufacturing, where specialized materials, technology, and
production methods are essential. This may give suppliers more negotiating power with Nike,
especially if they provide special or necessary parts.
Nike's operations depend heavily on suppliers' capacity to maintain a steady supply and high
standards of quality. Nike may experience changes in product availability, lead times, and
production costs as a result of supply chain disruptions such as shortages of raw materials,
production hold-ups, or quality problems. Suppliers who have dependable procedures and
backup plans lower the chance of interruptions in the supply chain. For Nike to guarantee
ethics, sustainability, and openness in its supply chain, strong connections with suppliers are
crucial. Conflicts can be avoided and sourcing, production, and logistical efficiency can be
increased through cooperative partnerships, good communication, and mutual trust.

POWER OF CUSTOMERS

Nike is able to retain premium pricing for its items because of its brand devotion. Nike brand
loyalists frequently have no problem paying more for products that they believe to be of
higher quality, more innovative, and more stylish. Nike's pricing power allows it to maintain
its profit margins and allocate resources towards research, development, and marketing
campaigns. Nike's devoted following of customers offers insightful feedback that influences
the company's innovation and product offerings. Nike is able to create new items, improve
old ones, and remain ahead of the competition by having a thorough understanding of client
preferences, trends, and expectations. Nike's partnerships with athletes, designers, and
celebrities, for instance, can strike a chord with devoted customers and spur product
innovation.
Nike's brand loyalty comprises not only performance and quality, but also fashion appeal and
cultural significance. Nike products are seen by devoted customers as fashionable, current,
and compatible with their lifestyle preferences. Nike is able to establish effective
partnerships, create industry standards, and take advantage of changing customer preferences
because of its influence on fashion and market trends. Innovation and technological
breakthroughs in Nike products are frequently driven by consumer trends. For instance,
Nike's creation of lifestyle collections, which combine performance elements with
fashionable designs appropriate for everyday wear, has been impacted by the advent of
athleisure wear and casual sports-inspired fashion. Additionally, Nike's innovation in
connected fitness, personalized training, and digital buying experiences has been fuelled by
improvements in digital technology, such as wearables and smartphone apps.

Nike can efficiently customize its marketing strategy by having a thorough understanding of
client preferences. To develop captivating brand narratives, focused campaigns, and
interesting content, the organization makes use of insights about the values, aspirations, and
lifestyles of its customers. Nike's brand relevance and emotional connections are fueled by its
emphasis on diversity, empowerment, and social impact, which connects with a variety of
customer sectors and cultural movements.

By communicating with clients directly through digital platforms like social media,
smartphone apps, and e-commerce websites, Nike empowers them and enhances their
experience. Digital platforms provide personalized recommendations, exclusive deals, and
candid comments, all of which have an effect on customer satisfaction, brand advocacy, and
loyalty.

NIKE VS ADIDAS -PRICE

When it comes to pricing competitiveness, Adidas is frequently seen as Nike's biggest rival.
Nike and Adidas are prominent entities in the worldwide sportswear industry, engaging in
intense competition across multiple product categories such as clothing, accessories, and
footwear.

Nike: Famous for its breakthrough innovations, strong brand equity, and marketing prowess,
Nike is known for being a premium brand that can fetch higher pricing for its products. Nike
does cater to customers who are ready to pay a premium for quality, style, and performance,
even if its products are available at a variety of price points.

Adidas: Compared to Nike, Adidas often has a slightly more approachable pricing strategy,
although it still works across a variety of price points. Adidas is competitive in terms of
pricing diversity since it offers a variety of items that appeal to both casual wearers and
athletes with performance goals.

NIKE VS ADIDAS -QUALITY

Nike: Nike is renowned for its constant innovation in the technology and materials it uses to
make its goods. In order to provide innovative materials like Nike Flyknit, Nike React foam,
and Nike Air cushioning—all of which are intended to improve performance, comfort, and
durability—the firm makes significant investments in research and development. Product
engineering and craftsmanship are highly valued at Nike. The overall quality and longevity of
Nike items are a result of the brand's manufacturing procedures, quality control requirements,
and meticulous attention to detail. Nike's high-end products frequently have expert
construction and sophisticated sewing methods.
Adidas: Adidas places a high priority on material innovation, creating exclusive innovations
like Primeknit uppers, Continental rubber outsoles, and Adidas Boost cushioning. The goal of
these advancements is to provide Adidas clothing and footwear with improved quality,
responsiveness, and performance. Adidas values fine craftsmanship and high-quality products
highly. Adidas products go through extensive testing and quality inspections to make sure
they fulfill durability and performance criteria. The brand's high-end ranges and partnerships
demonstrate its dedication to workmanship.

DIRECTION OF CHANGE IN SPORTSWEAR INDUSTRY

i) Sustainable and Ethical Practices:

Sustainability is becoming more and more important in the industry as stakeholders and
customers want environmentally friendly products, low environmental impact, and ethical
manufacturing methods. Nike has taken the lead in tackling sustainability issues by funding
projects that reduce carbon emissions, use recycled materials, and use sustainable production
techniques. Fair labour practices, supply chain transparency, and ethical sourcing are issues
that consumers are becoming more and more concerned about. Nike's dedication to social
responsibility, labour rights, and ethical sourcing is crucial for managing this shift and
preserving the confidence of customers who care about the environment and the community.
ii) Digital Transformation:
An important trend in marketing, engagement, and shopping is the move to digital platforms.
In keeping with this strategy, Nike is investing more in digital experiences, mobile apps, and
e-commerce platforms. These investments enable the corporation to reach a worldwide
audience, customize customer interactions, and maximize online sales. Personalized
experiences and data-driven insights are becoming more and more crucial. Nike uses
customer insights, AI-driven recommendations, and data analytics to better understand
consumer behaviour, preferences, and trends. This understanding helps Nike develop
customized marketing campaigns and product offerings.
iii) Innovation and Technology:
Technological, material, and product design advancements keep sportswear innovative. This
trend of change is reflected in Nike's emphasis on performance-enhancing elements like
adaptable support, lightweight materials, and cushioning systems, which meet the changing
needs of athletes and push the limits of athletic performance. Nike is investigating eco-
friendly materials, circular economy projects, and closed-loop manufacturing techniques as
part of its innovation focused on sustainability. This is consistent with the industry's
transition to more ecologically friendly and sustainable methods.

iv) Market Expansion and Global Reach:

Sportswear brands can find chances in emerging markets like Asia-Pacific, Latin America,
and Africa due to factors like growing fitness cultures, rising disposable incomes, and
urbanization. These regions are part of the industry's growth trajectory. This transition is
reflected in Nike's emphasis on market-specific offerings, localization methods, and
worldwide expansion. In marketing campaigns and product offerings, inclusivity, diversity,
and representation are highly valued. Nike's initiatives to uphold social issues, encourage
inclusivity, and celebrate diversity align with changing consumer attitudes and enhance the
brand's relevance and authenticity.

Enterprise Resource Planning (ERP) System

A number of corporate operations, including finance, supply chain management, production,
sales, marketing, human resources, and procurement, are integrated by Nike's ERP system.
Through this interface, various Nike teams and departments can exchange real-time data,
work together productively, and optimize workflows. Critical business data, including as
financial transactions, inventory levels, client orders, production schedules, personnel
information, and more, are stored and managed by the ERP system, which functions as a
centralized database. Throughout the company, data accuracy, consistency, and accessibility
are guaranteed by this single data repository. By automating repetitive jobs and procedures,
Nike's ERP system lowers manual labour, minimizes mistake, and boosts operational
effectiveness. For instance, automated processes can help Nike employees save time and
resources by handling order processing, inventory management, invoicing, payroll
processing, and reporting. Data-driven decision-making at Nike is made possible by the ERP
system, which offers real-time insights and analytics. Dashboards, reports, and KPIs (Key
Performance Indicators) are available for managers and executives to monitor performance,
follow financial indicators, examine market trends, and formulate well-informed strategic
decisions.
Nike uses its ERP system to optimize their supply chain, which includes order fulfilment,
supplier cooperation, inventory management, demand forecasting, and logistics planning. In
addition to lowering expenses and stockouts, this optimization guarantees effective supply
chain operations and raises customer satisfaction. Through the provision of efficient order
processing, precise inventory visibility, tailored marketing campaigns, and attentive customer
service, the ERP system helps Nike improve the customer experience. This enhances client
retention, loyalty, and satisfaction.

Customer Relationship Management (CRM)

A consolidated database with comprehensive customer data, including as demographics, past

purchases, preferences, interactions, and comments, is kept up to date by Nike's CRM
system. Nike is able to customize interactions and services according to the unique demands
and behaviours of each consumer thanks to its consolidated data warehouse, which offers a
full perspective of each individual. Nike uses CRM data to divide up their client base into
groups according to attributes like hobbies, engagement levels, buying patterns, and
demographics. Nike uses this segmentation to target different consumer segments with
specials, product recommendations, and marketing campaigns that are relevant to them in
order to increase engagement and conversion rates. In order to streamline and automate
marketing initiatives including email campaigns, social media outreach, targeted advertising,
and loyalty programs, Nike's CRM system integrates marketing automation technologies.
Automation delivers timely and tailored communications, optimizes communication
workflows continuously, and monitors campaign performance indicators. Nike’s CRM
system has lead and sales management capabilities that let sales teams monitor leads, handle
prospects, project sales pipelines, and work together efficiently. Through the provision of
individualized sales experiences, CRM functionalities empower sales staff to interact with
prospects, pursue inquiries, and turn leads into customers. In order to facilitate smooth
communication channels, ticket administration, issue resolution, and the gathering of client
feedback, Nike employs CRM functionalities for customer service and support. Nike is able
to respond to client questions, issues, and requests with speed, efficiency, and personalization
thanks to integrated customer service technologies.
SUPPLY CHAIN MANAGEMENT

Nike maintains tight ties with a wide range of international suppliers, such as fabric mills,
manufacturers, and suppliers of raw materials, to guarantee ethical, sustainable, and high-
quality standards across its supply chain.
In line with Nike's objectives for environmental and social responsibility, the firm works with
suppliers to create and develop sustainable materials, technologies, and production
techniques. Nike prioritizes strategic procurement and sourcing methods to reduce costs and
improve lead times while maintaining quality. To guarantee dependable and effective
sourcing, the business negotiates contracts, assesses supplier performance, and maintains
supplier relationships.

Nike incorporates sustainability standards, including fair labour practices, environmentally

friendly materials, and transparent supply chains, into their supplier relationships and
sourcing choices. Nike's production sites and contracted manufacturers follow tight labor
laws, environmental guidelines, and quality standards. To improve productivity and cut
waste, the organization uses automation, lean manufacturing concepts, and continuous
improvement programs. 3D printing, digital prototyping, robots, and other advanced
manufacturing technologies are used to innovate and improve equipment, clothing, and shoe
production processes.
Nike's global logistics and distribution network guarantees prompt product delivery to
retailers, distributors, and online shoppers in every country. The organization makes use of
transportation management systems, cutting-edge logistics technology, and tactical alliances
with logistics suppliers.
Warehouses and distribution hubs are positioned strategically to maximize inventory levels,
shorten lead times, and effectively satisfy client demand. To reduce stockouts and excess
inventory, inventory management techniques such as demand forecasting and inventory
optimization are used.

CONCLUSION

Nike's success is largely attributed to their digital transformation strategy and Management
Information System (MIS). By utilizing cutting-edge technologies, data analytics, and
customer-focused strategies, Nike streamlines processes, improves client experiences, and
spurs expansion. Nike stays at the forefront of digital innovation by focusing on agility,
sustainability, and brand leadership as it innovates and adapts in the fast-paced sportswear
market.
 BUSINESS CHALLENGES
i. Intense Competition
ii. Consumer Trends and
Preferences
iii. Supply Chain Complexity
MANAGEMENT iv. Brand Reputation and
Image
i. Global Operations
and Supply Chain BUSINESS SOLUTION
ii. Global Brand and
Marketing i. Interacts with athletes,
iii. Innovation and communities, and
Product customers through
Development sponsorships, social
impact projects, and
sporting events
ORGANIZATION MIS OF NIKE
ii. Investments in data-driven
i. Performance i. Enterprise Resource marketing, social media
Excellence Planning (ERP) System interaction, e-commerce
ii. Collaboration and ii. Customer Relationship platforms, and mobile
Agility Management (CRM) apps.
iii. Take Calculated iii. Supply Chain
Risks and Drive Management (SCM)
Positive impact iv. Business Intelligence iii. Online customer
engagement, conversions,
(BI) and Analytics
and loyalty are increased
via virtual try-on
technology, personalized
digital content, and
seamless omnichannel
experiences.
TECHNOLOGY
i. Carbon Reduction iv. Comprises inventory
ii. 3-D Printing & CAD management systems,
digital supply chain
iii. RFID
technologies for real-time
iv. Augmented Reality
tracking, and