Nike's Digital Transformation: A Comprehensive Case Study Analysis

This case study examines Nike's digital transformation journey, focusing on its adoption of digital marketing strategies to meet customer needs and enhance brand management. The analysis begins with an overview of Nike's initiatives, highlighting the use of social media and 3D design. It then summarizes the problem of integrating digital efforts and the creation of a digital division. The study applies the Digital Maturity Model to assess Nike's progress, emphasizing customer interaction and employee engagement. It explores digital disruptive solutions, such as innovative branding and customer satisfaction strategies. The case also identifies challenges, including the need for enhanced technological reach and website updates. Finally, it discusses Nike's change management approach, emphasizing transformations in branding and marketing to improve customer experience. The provided references support the analysis of Nike's digital transformation.

CASE STUDY
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TABLE OF CONTENTS
Brief about the case.........................................................................................................................3
Summarise the problem...................................................................................................................3
Apply Digital Maturity Model and describe the results..................................................................3
Digital Disruptive/ Innovative Solutions.........................................................................................4
Challenges........................................................................................................................................5
Change Management Approach......................................................................................................5
References........................................................................................................................................6
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BRIEF ABOUT THE CASE
Nike is the world’s leading manufacturing company of athletic, footwear, apparel and
accessories and the business has taken several initiatives in digital marketing for the purpose of
meeting specific needs of the customers (Cham, 2017). Nike has adopted social media strategies
so as to interact with the customers who are much concerned about brand management. The use
of technology has been changing rapidly; therefore looking towards this concern, Nike has
established several systems through which products can be promoted among end users. Digital
technologies have transformed a lot, and that has changed Nike's internal processes and the early
2000's, Nike has started using 3D design to create new papers (Rouse, 2017).
SUMMARISE THE PROBLEM
Currently, the executives of Nike have recognised the requirement for coordination and
integration with digital efforts. Transformation-related to digital media was succeeding;
however, the firm is missing the synergies. In the year 2010, Nike created a digital division to
provide skilled resources, budget and coordination all over the enterprise (Shaikh, 2016). This
has created a unified consumer experience due to aligned operations, and this also aids the
company to meet the changing preferences of customers. However, on the other hand, Nike
needs to connect to other sources of technology so that value of the strategic asset for marketing
could be enhanced.
APPLY DIGITAL MATURITY MODEL AND DESCRIBE THE RESULTS
Regarding meeting the needs and demands of customers, it was crucial for Nike to change the
global brand image; hence regarding this Nike entered the world of digital media. Thus, as a
global brand, Nike has paid attention towards emerging digital technologies such as mobility,
social media and smart- products to build the business. This has also helped in managing all the
operations in an effective way (Morabito, 2016). It can be said that Nike has adopted Digital
Maturity Model which has helped the business entity in establishing new digital products and
services. As per the model, effective transformation requires integrated change across all aspects
and as per the model, the chief focus has been laid towards proper interaction with the customers
(Cham, 2017).
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The model clearly depicts that Nike has entered in social media so as to inform customers
about the availability of innovative digital products and services. This depicts the immersive
experience of Nike which is beneficial for enhancing the brand loyalty of the customers.
Employee engagement is yet another benefit that has been attained with the help of the same
model. Afterwards, Nike has emphasised on digital enterprise through which transformations
were made in company's services (Duerr, Wagner, Weitzel and Beimborn, 2017). Under this
dimension, the technological reach of the business is being enhanced for the purpose of
enhancing process efficiency. Therefore, considering the stages of the model, it is evident that
Nike has changed the business processes which benefitted the company in strengthening the
internal business processes (Rogers, 2016).
DIGITAL DISRUPTIVE/ INNOVATIVE SOLUTIONS
Digital Disruption is the change that occurs when new digital technologies and business
models affect the value proposition of existing products and services. About this model, it is
crucial for the business entities to adopt new tools and technologies so that the chances of
competitive advantage can be enhanced (Rouse, 2017). Thus, considering the same Nike has
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adopted competitive strategies for the purpose of creating the competitive edge over the rivalries.
Henceforth, it is evident that Nike’s digital transformation has helped the business to encourage
the end users towards more purchase of innovative products.
Regarding innovative solutions, Nike has changed its profile for branding and customer
satisfaction, and this has helped the business organisation in meeting the requirements of
changed market structure. As a result, several innovations were developed in the business
regarding digital transformation, and this also changed the capabilities of Nike (Shaikh, 2016).
Regarding this, innovation groups have explored new digital technologies and practices for
engaging the customers in business services and applications. This has helped Nike in meeting
changing customer requirements, and firm’s capabilities have also changed as per new trends.
CHALLENGES
While promoting the products and services, Nike has built a dozen of social sites;
however, instead of that, the business has to enhance the technological reach through adding new
innovative services in the existing product line. The major challenges were observed in the area
of interacting with the consumers regarding the brands; therefore for such purpose, strategic
changes were made in the business entity (Nencioni, 2016). The use of multimedia shows that
Nike was emphasising on intensive brand building aspects to encourage the brand value of the
products and services. These are the major challenges that were faced by the Nike in respect to
digital media. Thus, it could be said that Nike’s corporate strategies seem to be less effective for
the brand building aspects. Nike has done a lot of things for customer convenience; however, due
to rapid changes in the technology, Nike has to update the websites on a regular basis so that
they can meet customer specifications (Duerr, Wagner, Weitzel and Beimborn, 2017). Thus, all
such digital technologies have transformed internal processes of Nike.
CHANGE MANAGEMENT APPROACH
Regarding change management, Nike has been making several transformations in the business
practices and operations which also aid the business entity in introducing new products for the
end users. This has also raised the concept of digital transformation which helped Nike to
produce new products successfully at the marketplace. Thus, regarding change management
approach, it can be said that Nike has made several transformations in branding strategies for the
purpose of enhancing the reach of customers and this was also undertaken for amending
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customer experience (Belleghem, 2016). Thus, it could be said that branding and marketing
strategies have changed because Nike wanted to build up diverse strategies for changing the
value of business products. Therefore, it can be articulated that Nike did not just enable new
digital enriched products; but it also changed the existing business strategies and techniques
(Morabito, 2016).
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REFERENCES
Belleghem, S. V., 2016. When Digital Becomes Human: The Transformation of Customer
Relationships.
Cham, K., 2017. Consumer as Producer; Value Mechanics in Digital Transformation Design
Process, Practice and Outcomes. In Cultural Policy, Innovation and the Creative
Economy (pp. 61-81). Palgrave Macmillan UK.
Duerr, S., Wagner, H. T., Weitzel, T. and Beimborn, D., 2017. Navigating Digital Innovation-
The Complementary Effect of Organizational and Knowledge Recombination.
Morabito, V., 2016. Wearable technologies. In The future of digital business innovation (pp. 23-
42). Springer International Publishing.
Nencioni, G., 2016. YouTube, Migrant Rappers and the Early Cinema Aesthetics: Is There a
Digital Public Sphere?. In The Digital Transformation of the Public Sphere (pp. 383-
402). Palgrave Macmillan UK.
Rogers, D., 2016. The Digital Transformation Playbook: Rethink Your Business for the Digital
Age. Columbia University Press.
Rouse, M., 2017. Digital disruption. [Online]. Available through:
<http://searchcio.techtarget.com/definition/digital-disruption>. [Accessed on 1st March
2017].
Shaikh, F., 2016. The Benefits of New Online (Digital) Technologies on Business:
Understanding the Impact of Digital. Digital Entrepreneurship and Global Innovation.
pp.1.
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