Nike Case Study
Submitted in partial fulfillment of the requirements
For Master of Business Administration Degree
Tiffin University at University of Bucharest
Information and Decision Support Course
Instructor: Prof. John J. Millar Ph.D.
Dean Emeritus and Professor of Management
November 06, 2010
1. What external and internal pressures did Mark Parker face when he assumed the leadership of Nike, and how did he respond to this challenges?
In order to understand the challenges that Mark Parker had we need to know what the internal and external business environment was. Speaking about external environment in that period Adidas become more powerful in the U.S. market trough the
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First of all choosing Parker as CEO was a strategic decision made by Knight because he aligned the internal capabilities of the company with the CEO capabilities. After taking the CEO position had to analyze the external environment and to find opportunities which match the internal strength of Nike –innovation. In the market he saw the opportunity generated by an increasing number of people willing to practice sports. The challenge was to be able to use the innovative capabilities of the company to fulfill customer needs. But finding out what your customers needs are is often difficult. By shifting the brand from product-based structure to a customer-driven structure it become easier to find out what the customers want and use the innovative force of the company to fulfill those needs. If you are focused on making shoes you may loose some opportunities because people which enjoy running need not only shoes but also other equipment. Structuring Nike into six “customer focused categories made easier to identify their needs. Even if we are talking only about shoes, if you are focusing on making shoes you may miss the opportunity to use the innovative power of the company by not seeing that a runner needs a specific kind of shoe which is completely different from a shoe used by a basketball player.
Another strategic decision was to establish Explore group for pursuing long range innovation. Trough this group Nike was able to spot opportunities which