The digital transformation has become imperious for all businesses from minor to great enterprises

CASE ANALYSIS AND
BUSINES STRATEGY

Case analysis and business strategy 1
Contents
Introduction............................................................................................................... 2
SWOT analysis.......................................................................................................... 2
Strategic Plan............................................................................................................. 6
Conclusion................................................................................................................ 8
References................................................................................................................ 9

Case analysis and business strategy 2
Introduction
The digital transformation has become imperious for all businesses from minor to
great enterprises. It has dramatically reshaped the industry and the companies are also making
efforts to attain the benefits through the digital transformation. The change made through the
digital transformation whether succeeds or not but results in sharing traits of current digital
transformations. The major objective of digital transformation is to digitize the operating
model of the company. The adoption of technologies has a great role in digital
transformations. One of the remarkable things about Nike’s performance is its acceleration in
footwear sales. The reason behind the progressed growth of Nike is not only innovation but
also reserves made in digital sales channels comprising technology. The technology has
enhanced the Nike’s efficiency all over the supply chain. The digital strategy of Nike is more
than just a website or offering an app. The company has been making its digital shopping
practice a lifestyle. For instance, Nike has been investing in the mobile program known as the
‘Nike Plus Membership Program’ to generate a more personalized connection with the
customers. Nike has been also making use of data analytics to progress progressive
algorithms to improved reward active members and utilize demand-sensing technology. It
assists the company in keeping products in the supply. The company has observed that when
it offers more tailored products and experiences than it results in creating more value along
with opening opportunities for the growth of the business.
But the digital transformation has also led to the issue in Nike. Assisting digital
transformation and the demand it generates necessitates substantial investments on the back
end of the company. In line with the supply chain improvements made by Nike in the past
few years, the company endures fine-tuning its actions comprising digital tagging and
tracking of products by making use of radio-frequency identification (RFID). It enabled the
company to track products by the manufacturing until the product is sold to the customers.
Nike has attained the opportunity to build on the innovation. It is assisting the company to
differentiate by the investments made in the technology. The company can win to the
customers in the coming period of time through the innovations. The innovations are in fact
number one competitive advantage of Nike and the digital transformation will even generate
even further separation. Nike has planned to meet long term business planning which will be
met in the effective 3-5 years. The company will completely digitally transform within the
time period described.

Case analysis and business strategy 3
SWOT analysis
Strengths
Robust brand cognizance: Nike is identified as one of the leading brands globally. The
brand’s swoosh symbol is straightforwardly identifiable by everyone. The company has been
successful in capturing almost a 31% share of the international athletic footwear market. The
quality has a great role in the robust brand image of Nike. The effective marketing campaigns
have also great in creating a brand image of Nike (Nobre & Ferreira, 2017). The rapid
innovation made by Nike also comes in forming cutting edge designs for athletic footwear,
equipment, and apparel.
Huge customer base: The brand is having lots of patrons from around the globe who track
trends of Nike and likely to partake in the events launched by Nike and even offer customer
response. The vast customer base has assisted the company to grow its market cap.
Aimed for sustainability: Nike has decided to concede the environmental matters in the
societies. The company makes sure that it will assist to contribute to finding a explanation as
a remedy to the environmental matters (Mühlbacher, et al. 2016).
Innovation: Nike is majorly built on the basis of innovation. The company has differentiated
itself by making an investment in the technology which results in innovations. Moreover, the
innovation pipeline is full of Nike and offers a great chance to win customers in the coming
period of time. The innovations in the case of Nike are viewed in the terms of number one
competitive advantage and the digital transformation will continue to differentiate the
company (Ramaswamy & Ozcan, 2016).
Iconic relationships: The long-term association of Nike with Michael Jordan has been
identified to be valuable in terms of sales. This collaboration has even resulted in ‘Air Jordan
1 shoes’. Moreover, the brand has teamed up with the well-known basketball player to assist
design ‘Air Jordan 1 shoes’.
Low manufacturing costs: Most of the footwear of Nike is produced in foreign nations. In
2018, Vietnam manufactured 47%, China manufactured 26% and Indonesia manufactured
21% of the total footwear of Nike. Nike is also having operations in India, Brazil, Argentina,
Mexico, and Italy. Other than this, Nike has recently digitalized a complete palette of 6,000
footwear materials which is helpful in enhancing harmonization across the design teams. It
enables Nike to retort to moves in consumer trends more rapidly (Wiberg, 2018).