Leading Through Digital Disruption

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BPP Business School
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Module Name Leading Through Digital Disruption
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BP0245624
Assessment Title Case for change
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S # TOPIC PAGES
1- INTRODUCTION 03
1.1 THE CASE FOR CHANGE 03
2- CAPTURE INSIGHTS 04
3- MAKE FAST DECISIONS 05
3.1 MARKETING STRATEGIES CHANGES 05
3.2 TECHNOLOGICAL ADVANCEMENT 05
3.2 COMPETENT MANAGERS AND STAFF 06
4- ACQUIRING & ENGAGING TALENTS 06
4.1 ENGAGE TALENT TO MAKE BEST OBJECTIVES 06
4.2 ENGAGE TALENT TO USE INFORMATION FOR FINEST MATERIALS 07
4.3 ENGAGE TALENT TO HIRE COMPETENT PERSONS 07
4.4 ENGAGE TALENT TO INCREASE BRICK AND MORTAR 07
4.4 ENGAGE TALENT TO FACILITATE CUSTOMERS THROUGH ONLINE E-
COMMORCE
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5- CREATE A DIGITAL READY CULTURE 09
5.1 CEOS, ROLES 09
5.2 ROLE OF MARKETING MANAGERS IN DIGITAL TRANSFORMATION 09
5.3 ROLE OF IT EXPERTS IN DIGITAL TRANSFORMATION 10
6- STEER COLLABORATION 10
6.1 EXECUTIVE SUPPORT 10
6.2 MODELING COLLABORATIVE BEHAVIOUR 11
6.3 FLOW DOCK 11
6.4 GO TO MEETING 11
7- SELECT YOUR LEADERS 11
7.1 CLIENTS ARE THEIR EVERYTHING 11
7.2 THEY BELIEVE IN STRONG CULTURE 12
7.3 THEY RELY STRONGLY ON INFORMATION 12
7.4 THEY SEARCH FOR NEW INNOVATIONS 12
7.5 THEY USED LABOUR FORCE WITH GREAT SKILLS 12
8- REFERENCES 13-14

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1- INTRODUCTION
Founded in 1964 by the university of Oregon track athlete Phil Knight and his coach Bill
Bowerman, Nike initially started as a distributor for Japanese shoemaker Onitsuka tiger (Hina
Brohi, 2016). Its original name was BRS I.e., Blue Ribbon Sport, opened its first retail shop in
California. In 1971 Nike started making its own shoes & since then Nike was one of the leading
stakeholders in U.S athletic market (Hina Brohi, 2016). Reports shows that Nike has annual
revenues of almost $30,601 million in 2015 (Sami Frances, 2016). However, their current net
value is approximately 34.8 billion dollars (Tugba Sabanoglu, 2021). Nike has a clear vision
and Mission statement “To bring inspiration and innovation to every athlete in the world, if you
have a body, you are an athlete” (Hina Brohi 2016).
1.1 THE CASE FOR CHANGE
Nike with initial success in the market failed to compete with its rivals like PUMA and ADIDAS.
In 2000, Nike started to use SAP ERP software to forecast the demands of the market and to
manage the implementation of supply chain management according to its customers
requirement (Christopher Koch, 2004), but the failed to collect the adequate data from the
market as per requirement. In the recent times the company has struggled to achieve its
market targets and revenues and also face erosion in their market shares was 45% of the
company revenues specially in North America (ANDREW, 2018). With such pressures in
competent authorities, decide to focus on China & Asia Pacific and also reduced their work
force by 2 % to improve its top line (ANDREW, 2018).
To overcome their rivals and competitor Nike required a digital transformation and needs to
adopt new agile framework management. At their management level Nike are facing
disastrous problems like they ignore the faults made by them and blame the i2 software (Jose,
varkey, NA).

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2- CAPTURE INSIGHTS
To transform digitally companies required research to understand their rivals, markets they
operating, techniques they apply, their internal structure and last but not the least the secrete
behind their success.
To critically analyse the sportswear market in which Nike is operating. Their competitors
Adidas, Reebok, Puma are already producing good quality sportswear products and
consumers can easily switch to any of the brands (Nur Hamizah et al, 2017). Adidas is the
topmost competitor to Nike and the reason behind is that it has an advantage because of its
brand and also Reebok work under his subsidiary (Nur Hamizah et al, 2017).
By comparing these top rivals, the study clearly suggest that other companies have upper
hand when it comes to market (S.K. Gupta, 2021). The statistics clearly identified that Nike
equipment revenue in the Us markets declined to 14% in 2019 while its competitor Adidas
increased its brand value up to 10% which is a record (S.K. Gupta 2021). The other
competitors are also growing with good numbers but due to the recent pandemic some of their
rivals are also facing financial problems i.e. Puma, Reebok (S.K. Gupta 2021) but before
Wuhan Virus they had clear and upper hand while Nike statistics shows decline since 2014
which clearly indicate lack of agile management and approach.
For digital transformation the researcher comes with the conclusion from the above study that
Nike required to research the customers interest by taking several surveys and practical
analysis as it operates in a specific market which only attracts athletes and sports personals
(Nur Hamizah et al, 2017). Secondly with the comparison to its competitors the study also
concluded that Nike lack competent management (Andrew, 2018). For a successful company
the management plays a vital role in selecting the work methodology and ideal techniques. In
this case with Nike, they struggled with a software they introduced but failed to achieved the
desired results (Christopher Koch, 2004).by hiring professional researchers they can easily
get statistical data and true customer reviews through different social media plate forms which
will help them in their quarterly and annual analysis. Other studies also suggests that Nike
does not make some of its footwear models and they utilized third party which then make
price issues (Mohammed Abbas et al, 2015).

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3- MAKE FAST DECISIONS
In this section we will critically analyse those decisions which will help Nike to be digitally
transformed in the era where its competitors have upper hand in the market. The followings
are the techniques in which the company can be transformed digitally.
3.1 MARKETING STRATEGIES CHANGES
Nike face some of its marketing issues this is due to the poor marketing strategies and
outdated products which clearly indicate lack of interests in their customers (Mallory
Schlossberg, 2016). The study clearly suggests that outdated shoes model of Nike basketball
Foot Locker model is now out dated with modern styles as player now a days prefer new and
stylish model sneakers (Mallory Schlossberg, 2016).
Another marketing strategy that needs to be managed properly is the sales distribution. Nike
operates its market through three main distribution in which around 67 % of the distribution
comes from whole sale which cause Nike price issues as third party is involved between
company and customers (ANDREW, 2018). It needs to increase its direct sales to customers
by using plate forms like Amazon etc.
3.2 TECHNOLOGICAL ADVANCEMENT
With such bad previous experience in software handling Nike needs to use advance and
effective software’s that will help in growing the company (Christopher Koch, 2004). Nike also
needs advance manufacturing tools and factories to reduced third party expenses as almost
all Nike brands are manufactured in Southeast Asia (UK Essays, 2015). Also, these third
parties worked with different companies at a time which makes it difficult to maintain standard.

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3.2 COMPETENT MANAGERS AND STAFF
With some controversies which effects the customer reviews towards company is one of the
biggest issues almost every company is feared off. Nike has been in media for several times
and the reasons are working conditions and wages and allegations of irritation and abuse
between special interest groups and Journalists (UK Essays, 2015). This study shows worse
condition, because with such issues their rival got opportunity to enhance himself. This study
also shows lack of competent management with in the company which may affect the
company internal environment. By hiring competent persons for media handling will be
beneficial for the company growth in the future. This will also help the company in future
advertainments ideas.
4- ACQUIRING & ENGAGING TALENTS
Here we will discuss the techniques by which Nike will Acquire and Engage talents needed for
this transformation.
4.1 ENGAGE TALENT TO MAKE BEST OBJECTIVES
Good and progressive companies mainly rely on their objectives. Objectives identify goals
and procedure to achieve goals. Making long term gaols will help company to achieve targets
easily. Also, Nike needs to make a plain and set small targets to be achieved in the upcoming
years. After selecting long term objectives these should be clear to every team member within
the organization so that everyone should contribute with full efforts (Garrett Moon, 2016).

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4.2 ENGAGE TALENT TO USE INFORMATION FOR FINEST
MATERIALS
Nike should use its finest talent to gather information to make a finest end product which is
according to the customers needs and demands. This also include such advertisements and
slogans which is acceptable to public and local customers where the company operates. The
study suggests the pervious experience of Nike with the slogan of “just do it” where majority
of the girls and woman athletes rejects the slogan mentality and prefer other brands (Mallory
Schlossberg, 2016).
4.3 ENGAGE TALENT TO HIRE COMPETENT PERSONS
Companies always choose right person for right work. Lack of competent workers and
managers can lead to bad organizational culture. Nike should hire competent managers and
workers to accomplish goals they set and make very single efforts to achieve these goals.
The study shows that how lack of competent people leads to a software failure and involve in
controversies (UK Essays, 2015), (Jose, varkey, NA).
4.4 ENGAGE TALENT TO INCREASE BRICK AND MORTAR
Nike clearly behind when it comes to direct sales to customers. Study indicates that almost
67% of its products goes to customers through direct whole sales (ANDREW, 2018). The
reason behind this is the lack of physical stores network and also its manufacturing problem
as study also reveals that Nike made its manufacturing shoes and footwear through
contractors in the other countries like Asia. This also make Nike product too expensive.

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4.4 ENGAGE TALENT TO FACILITATE CUSTOMERS THROUGH
ONLINE E-COMMORCE
Nike needs to enhance modern techniques to facilitate their customers through online E-
Commerce which will help them to maintain a low price as well (Jose, NA).

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5- CREATE A DIGITAL READY CULTURE
5.1 CEOS, ROLES
CEOs are the drives of the organization. They are responsible for every task and function the
organization performs. With their vast experience managers and middle managers can seek
help and with their check and balance company operates in a good environment. CEOs are
also responsible for shaping their company internal environment. Their approach is always
fragile and once they decide a change or plane they force and drive the organization to follow
the plains (KLEIN, M 2020). They are only answerable to the Owners and board of Directors.
CEOs is one of the most important roles in any of the organization and this will also help to
execute the transformation identified by the researcher in the report.
5.2 ROLE OF MARKETING MANAGERS IN DIGITAL
TRANSFORMATION
Managers are responsible for managing different tasks that are given by CEOs. Mangers use
their managerial skills to enhance company progress and make sure that everything is going
according to the plain. In short CEOs manage plains and goals and managers execute those
plains according to their skills and making transformation and individual goal (Morgane
Mallejac, 2018). The marketing manger’s role in the Nike is very important for the digital
transformation because the study already reveals the lack of marketing strategies which leads
the Nike to a terrible financial loss (Mohammed Abbas et al, 2015). The marketing managers
will help digital transformation by creating such opportunities that will help company to achieve
its targets and get customers satisfaction.

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5.3 ROLE OF IT EXPERTS IN DIGITAL TRANSFORMATION
In every organization technical staff plays a vital role. They help managers and other staff to
provide such technical facilities by which they can achieve their goal in much proper way. Also
due to the technological advancements and modern software’s the requirement of technical
staff is much important as the mangers. In case of digital transformation IT experts can provide
vital information in the form of statistical data and other charts which helps the authorities to
compare their progress with their previous one. Today almost every company uses modern
software to achieve excellent results as we also found in the above results that how Nike failed
and loss its place in the market after such a successful year.
6- STEER COLLABORATION
When people work together to achieve goals then their collective efforts are known as
collaboration (collaboration). In agile management frame work collaboration is very important
as different teams were doing different small-scale activities to achieve goals. For an effective
result the teams must be in collaboration with their managers and with each other’s. in Nike
company we will two important initiatives to create collaboration between teams and team
members. We will also discuss and suggest a possible tool which will helps in collaboration.
6.1 EXECUTIVE SUPPORT
This is one of the basic levels where team’s success and failure at collaboration reflects the
philosophy of top executives in the organization (Lynda Gratton et al, 2007). Teams performs
well when their managers and executives create a social relationship with team members by
creating a culture generally known as “gift culture” (Lynda Gratton et al, 2007).

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6.2 MODELING COLLABORATIVE BEHAVIOUR
Large companies with thousands of employees like Nike where few members experience a
day-to-day behaviour of their seniors which plays a significant role in the determining the
teams’ executions (Lynda Gratton et al, 2007). Individual behaviour plays a vital role inside
teams specially with team leaders. Their behaviour also effects the work handling and team
management within the organization. Team leaders who follow strict plans and laws generally
adopts good results compared to those with non-serious behaviours. With collaborative
behaviour it becomes very easy and understandable for the managers to execute plains and
transferred orders to the lowest level.
6.3 FLOW DOCK
Flow dock is software hub by which teams can collaborate and comminate with each other
through chatting and inbox feature (Flow dock). Flow dock also offer advanced team inbox
that save all discussions which is then accessed by all participants.it is also very cheap which
offer its full feature with just low as 3 U.S Dollars per month (Flow Dock).
6.4 GO TO MEETING
Go to is a web- hosted service which provide features such as online meeting, desktop sharing
etc. It also provides video conferencing features where people can collaborate with each
other.
7- SELECT YOUR LEADERS
For good leadership following qualities must be enhanced.
7.1 CLIENTS ARE THEIR EVERYTHING
For ideal leaders clients comes first priority. They value their clients and their feedbacks with
importance. They also made products which are as per customers demands like pricing,
quality, quantity. They respect their clients’ norms and culture.

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7.2 THEY BELIEVE IN STRONG CULTURE
Good leaders create culture within the organization and which is most effective and
acceptable to all. They also maintain a good health and safety culture for effective results.
They also analyse hazards, opportunities, threats, strengths and weakness with in culture to
promote and positive working environment.
7.3 THEY RELY STRONGLY ON INFORMATION
Good managers and leader give values to information and they consider it an asset for
advancement for their effective progress. They search and collect information’s from all the
available sources and used them for their benefits and create a must win- win situation.
7.4 THEY SEARCH FOR NEW INNOVATIONS
Good managers and leaders always kept eyes on new advancements and innovation and
always try their level best to adopt such innovations and advancement for their true benefits.
7.5 THEY USED LABOUR FORCE WITH GREAT SKILLS
Good and effective leaders engage their labour force to enhance more and more outcomes.
They accept challenges during their tasks and try to solve them rather than blaming workers
for their mistakes.
They generally use their common vision to unite groups. They generally follow laws and they
are great problem solvers in the field. They at the same time manage multiple task within the
organization and outside organization in the market place. They sue their managerial skills to
utilized their visions and skills and they have very keen and choosy behaviour when it comes
to hiring competent and skill full persons. they effectively work to change the storehouse
outlook by making shared targets and accountabilities, giving devices that work with and
support cross-departmental co-activity, and empowering and compensating the practices that
help cooperation and joint effort.

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8- REFERENCES
1) Hina Brohi 2016, “Strategic Marketing Plan of Nike” report, Shaheed Zulfikar Ali Bhutto Institute
of Science and Technology, Karachi, Pakistan.
2) Sami Frances 2016, “Nike, company overview” ACADEMIA, Available at:
https://www.academia.edu/29391734/Nike_company_overview, (Visited on: 2 nd May, 2021).
3) Tugba Sabanoglu 2021,” Global brand value of Nike from 2016 to 2020” Statista.com Available
at: https://www.statista.com/statistics/632210/nike-brand-
value/#:~:text=In%202020%2C%20the%20Nike%20brand,billion%20U.S.%20dollars%20from
%202019, (Visited on: 1st May,2021).
4) Andrew Ian Borts 2018 “Athletic Footwear and ApparreL”, NIKE, INC. Company report, NOVA
School of Business and economics, Portugal.
5) Christopher Koch 2004, “Nike Rebounds: How (and Why) Nike Recovered from Its Supply
Chain Disaster” CIO, Available at: https://www.cio.com/article/2439601/nike-rebounds--how--
and-why--nike-recovered-from-its-supply-chain-disaster.html?page=2, (Visited on: 1st May,
2021).
6) Jose, varkey, NA, “Success and Failure of Nike” bartleby research, Available at:
https://www.bartleby.com/essay/Success-And-Failure-Of-Nike-FCRL7VAJ3U, (Visited on: 1st
May, 2021).
7) Nur Hamizah et al 2017, “Advertising Practices: The Case of Nike, Inc”, Faculty of Business
Management and Information Technology, University Sultan Azlan Shah, Bukit Chandan,
Malaysia.
8) S.K. Gupta 2021, “Top 20 Nike Competitors & Alternatives” Available at:
https://bstrategyhub.com/top-nike-competitors-alternatives/, (Visited on: 1 st May, 2021).
9) Mohammed Abbas et al, 2015, A Comparative Analysis of Strategies and Business Models of
Nike, Inc. and Adidas Group with special reference to Competitive Advantage in the context of
a Dynamic and Competitive Environment, University of Bahrain, Kingdom of Bahrain.
10) Mallory Schlossberg 2016, “Nike is facing 3 major challenges to its business” business insider,
Available at: https://www.businessinsider.com/nike-is-facing-3-major-challenges-2016-6,
(Visited on: 1st May, 2021).

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11) UK Essays, 2015 “Nike Issues and Their Solutions Marketing Essay” Available at:
https://www.ukessays.com/essays/marketing/nike-issues-and-their-solutions-marketing-
essay.php, (Visited on: 1st May, 2021).
12) Garrett Moon, 2016” coschedule, Available at: https://coschedule.com/blog/nike-marketing-
strategy, (Visited on: 1st May, 2021).
13) KLEIN, M. 2020, “LEADERSHIP CHARACTERISTICS IN THE ERA OF DIGITAL
TRANSFORMATION”, Business & Management Studies: An International Journal, at Turk -
Alman University, Istanbul Turkey, pp. 883-902.
14) Morgane Mallejac 2018, “The Role Of Managers In Creating A Culture Of Digital
Transformation” Available at: https://elearningindustry.com/culture-of-digital-transformation-
managers-role, (Visited on: 1st May, 2021).
15) Lynda Gratton et al, 2007 “Eight Ways to Build Collaborative Teams”, Magazines Available at:
https://hbr.org/2007/11/eight-ways-to-build-collaborative-teams, (Visited on: 1 st May, 2021).