Innovation and Enterprise: A Business Case Study of Nike

This report presents a business case study of Nike, focusing on its innovative Lightning-Bolt technology. It begins with an executive summary outlining the paper's objective: to analyze Nike's approach to address the problem of heavy and injury-prone footwear. The report details the background, definition, and evidence of the problem, emphasizing how the technology aims to make shoes lightweight and improve energy return. It then explores the benefits of this technology, including reduced athlete injuries and enhanced performance, along with the strategic responses Nike implemented. The report further analyzes project options, stakeholder impacts (social, environmental, and economic), financial considerations, and risk assessments. It concludes with recommendations for deliverability, emphasizing commercial, financial, and management aspects. The report also includes references and appendices to support its findings. The overall goal is to provide a comprehensive understanding of Nike's innovation strategy and its potential impact on the sports industry.

Running head: INNOVATION AND ENTERPRISE
Innovation and Enterprise
Name of the Student
Name of the University
Author note

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INNOVATION AND ENTERPRISE
Executive Summary
The purpose of this paper is to present a business case of Nike which is a renowned
manufacturer of footwear. This paper discusses the business procedure of Nike; therefore it
follows a specific outline at the same time. This paper includes a brief discussion of the
introductory part of the particular topic and the business problem as a background of the
business case. This paper has also emphasized how the particular issue of having heavy
weight shoes are affecting the athletes and increasing their rate of injuries which eventually
made the company find a suitable solution and invent Lightning-Bolt Technology that makes
the shoes lightweight and improves the texture and quality at the same time. The associated
benefits of the technology have been discussed in the paper and possible recommendations of
improving the product has also been discussed in details.

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Table of Contents
Part 1: Problem...........................................................................................................................2
Part 1.1 Backgrounds of the problem.....................................................................................2
1.2 Definition of the problem.................................................................................................2
1.3 Evidence of the problem...................................................................................................3
1.4 Timing considerations......................................................................................................3
1.5 Consideration of the broader context...............................................................................3
Part 2: Benefits...........................................................................................................................4
2.1 Benefits to be delivered....................................................................................................4
2.2 Importance of benefits to the government........................................................................4
2.3 Evidence of benefit delivery.............................................................................................5
2.4 Interdependence................................................................................................................5
Part 3: Strategic response...........................................................................................................5
3.1 Method and criteria...........................................................................................................6
3.2 Strategic options analysis.................................................................................................6
3.3 Recommended strategic options.......................................................................................6
Part 4: Project options analysis..................................................................................................6
4.1 Project options considered................................................................................................6
4.2 Stakeholder identification and consultation.....................................................................7
4.3 Social impacts...................................................................................................................7
4.4 Environmental impacts.....................................................................................................7

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INNOVATION AND ENTERPRISE
4.5 Economic impacts............................................................................................................7
4.6 Overall evaluations of social economic and environmental impacts...............................7
4.7 Financial analysis.............................................................................................................8
4.8 Risk comparison...............................................................................................................8
4.9 Integrated analysis and options ranking...........................................................................9
Part 5: Deliverability of recommended solution......................................................................10
5.1 Details of recommended solution...................................................................................10
5.2 Commercial and financial...............................................................................................10
5.3 Management...................................................................................................................10
5.4 Delivery..........................................................................................................................10
References................................................................................................................................11
Appendix A..............................................................................................................................13
Appendix B:.............................................................................................................................14
Appendix C:.............................................................................................................................14

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INNOVATION AND ENTERPRISE
Part 1: Problem
Part 1.1 Backgrounds of the problem
When the management of Nike surveyed among the runaways regarding their
expectations out of the running shoes they stated that they want better questioning, better
energy return and the shoes must be lightweight. Therefore the management of the
organisation has considered the results of the survey on a serious note and a new idea came
up to manufacturer shoes that would satisfy all the demands of the runners and with that there
should be one more features to their shoes and that should be long lasting (Alderson, 2016).
The management of Nike therefore emphasizes significantly on maintaining the quality of
their products that they are manufacturing for the athletic purposes (Mahdi et al., 2015). The
management of Nike invented a technology that is widely accepted as LightningBolt
Technology that allows the shoes to be light weight in nature and the materials are soft and
give the most energy return to the individuals who wear them.
1.2 Definition of the problem
It has been seen that the main problem that the runners or the others consider that the
shoes or not lightweight and they do not give the most energy return. This may be only due to
the form that is used for manufacturing the shoes. In this regard it can be said that Nike's in-
house chemists and the engineers worked as a team to test their ingredients so that they can
come up with a solution that can provide and satisfy all the demands of their target customers
and in order to increase the quality of their products there according to their target customer
base (Rogers & Marres, 2016). The main problem in today’s world is that the organisations
for manufacturing sports related equipments do not incorporate the exact requirements of
their target customers; rather they only focus on their own profitability and there lies the
difference between other companies and Nike. The management of Nike has introduced the

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INNOVATION AND ENTERPRISE
latest technology named LightningBolt that is used to deliver the finest of the shoes to the
target customers.
1.3 Evidence of the problem
Many athletes and specially the Rugby players faced horrible injuries in their career
due to the texture and the quality of their shoes while playing or training. In most cases the
demands of those athletes are not satisfied by the manufacturers of the equipments and that is
where the management of Nike wants to emphasize and satisfy all the demands of the target
customer base so that they can earn huge reputation in their market of operation and also they
can experience a major boost in their productivity along with profitability (PAGE, 2017).
1.4 Timing considerations
It can be said that introducing any innovative concept within the existing products and
materializing them is not an easy job. Therefore Nike management has considered testifying
the efficiency of their latest technology. In order to do that, the management has incorporated
this LightningBolt technology in the footwear of a group of Rugby players which are to be
used for minimum of 2000 hours. While doing that, the management has utilized the best
possible and most durable components that are capable of delivering the best possible energy
return under any circumstances (Manshahia, Das & Alagirusamy, 2016). It can be said that
this product is capable of beating any other existing product of Nike as well.
1.5 Consideration of the broader context
There are quite a few manufacturing companies operating in the sports industry but
none of them focus specifically on satisfying the customers’ demands. The management of
Nike tend to focus entirely on the demand of their customers which leads them to integrate
their latest technology. In the latest LightningBolt technology it has been seen that the
management is focusing on improving the qualitative factors of the footwear and along with

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INNOVATION AND ENTERPRISE
that they also focusing on the aspect to reduce the manufacturing cost so that the price range
of these products are not in the higher range (Mahdi et al., 2015). This latest technology of
Nike will effectively help a number of athletes who are currently experiencing frequent
injuries due to the bad quality of the shoes. Other than that keeping the price in a much lower
range can effectively help the aspiring athletes as well.
Part 2: Benefits
The technological advancement in recent times has given a significant boost to the
sports industry and that has given benefits to all the athletes in many ways. It has been
therefore seen that the management of Nike is aiming to satisfy all the requirements of their
target customers and specially the requirements of the Rugby players. This may be
considered to be a good move in today’s world in order to gain the competitive advantage in
the global market full of rivalries (Power, 2017). This latest technology can bring remarkable
changes to the sports industry as these shoes can significantly lower the frequencies of the
injuries along with the price range that the players experience in their playing career.
2.1 Benefits to be delivered
The innovative idea of introducing a new technology that can effectively reduce the
weight of the shoes can provide the most of the energy return and can significantly lower the
frequency of getting injured can significantly benefit the individuals who are into athletics.
Therefore it can be said that this technology can immensely help the sports clan to stay out of
frequent injuries. In addition to that, this technology will help the athletes to play with their
full potential as they would not have to lag behind due to the qualitative factors of their shoes
and its heavy weight (Alderson, 2016).

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2.2 Importance of benefits to the gov ernment
Introducing this latest technology in the workshops of the business organisation can
effectively create more job opportunities in the sports accessories manufacturing sector and
that can give a major boost to the economy of the countries where the manufacturing plants
of Nike are operating. Apart from that using these latest technologies in the shoes the athletes
of numerous countries will gain and advantage in securing the titles for the Championship
titles and that can also indirectly help the government of numerous countries (Childs & Jin,
2018).
2.3 Evidence of benefit delivery
When the latest technology of Nike was tested for 2000 hours by implementing the
technology in the footwear of the Rugby players some of the Rugby players’ ability to control
the game significantly changed and it was seen that they had gained this advantage only due
to the shoes they are wearing and they themselves had admitted that. Their lies the evidence
of the benefit delivery of this latest technology introduced by the management of Nike.
2.4 Interdependence
There are numbers of independent features which are associated with the development
of novel and innovative ideas within the sports industry. This recently introduced technology
needs to gain huge positive feedback from the athletes especially from the ones from Rugby
fraternity. This can immensely boost the morale of the management along with providing
them a huge opportunity to achieve their desired success in the competitive market (Lee &
Tang, 2017).
Part 3: Strategic response
Introducing LightningBolt Technology has gained some major positive feedbacks as
this technology will be able to benefit the entire sports fraternity who are suffering from

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INNOVATION AND ENTERPRISE
frequent injuries and this technology can effectively help to boost the performance of the
athletes and specially the Rugby players. Therefore it can be said that this latest technology
can help the organisation to experience improve their productivity and profitability along
with reputation in the international market.
3.1 Method and criteria
The engineers and the chemists of the business organisation will gather relevant
information and ideas from the sports fraternity of all the different areas of the globe and
implement those while implementing their technology in the footwear’s. Apart from that the
management of the organisation will also test this technology for more than 2000 hours using
it on the footwear of a group of Rugby players.
3.2 Strategic options analysis
 The management of Nike should emphasize on the quality of the products
 The management should also focus on lowering the production costs
 By incorporating LightningBolt technology, the organization will make light weight
shoes that can give a major boost to the performance of athletes.
3.3 Recommended strategic options
 The management of the organisation can approach the government for funding their
operational areas at the preliminary stage.
 The manufacturing company can make their entire manufacturing procedure more
technology driven than depending on the man power. This will effectively reduce the
production cost by saving huge wastage from the unused scrapes and provide more
cost saving.

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INNOVATION AND ENTERPRISE
Part 4: Project options analysis
4.1 Project options considered
 The management of the organisation should always look for the areas of
improvements.
 The management of the organisation should focus on lowering the production costs.
 The manufacturer company should deploy a highly skilled workforce for
implementing this technology to their footwear.
 More technological advancements should be incorporated in the production area for
strengthening their customized designs and premium products.
4.2 Stakeholder identification and consultation
For this particular case the primary stakeholders will be the owners of the business
organisation Nike, all the internal and external stakeholders of the company the customers of
the business organisation the governments of the operational areas and it can be said that the
entire sports fraternity can be considered as an important stakeholder for this case.
4.3 Social impacts
If this latest technology of the business organisation gets popular, it can effectively help
all the athletes to lower the frequencies of the injuries that the experience and that can
significantly help the entire sports fraternity.
4.4 Environmental impacts
 This project and implementing this technology to the footwear will not harm the
balance of environment
 Nike will always use eco friendly technology is to manufacture the footwear by
implementing this latest technology.

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INNOVATION AND ENTERPRISE
 Also making the manufacturing operations technology driven will save the
organization from saving random wastages.
4.5 Economic impacts
 This technology can effectively create significant job opportunities in the sports
industry
 This technology can effectively lower the frequency of the injuries and can benefit
the athletes significantly as in most cases the time span of the playing careers of
the athletes are in between 8 to 12 years maximum.
4.6 Overall evaluations of social economic and environmental impacts
Looking at the above mentioned facts it can be said that this project can actually help the
entire sports fraternity across the world and can also create a significant amount of job
opportunities.
4.7 Financial analysis

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INNOVATION AND ENTERPRISE
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 295000 295000 295000 295000 295000
Benefit 2 225000 225000 225000 225000 225000
Benefit 3 105000 105000 105000 105000 105000
Total Benefits (mid-year) $625,000 $625,000 $625,000 $625,000 $625,000
Present Value of Benefits (mid-yr) $601,407 $556,858 $515,609 $477,416 $442,052
Present Value of Benefits $2,593,341
Cost 1 -$32,800 -$32,800 -$32,800 -$32,800 -$32,800
Cost 2 -$23,000 -$23,000 -$23,000 -$23,000 -$23,000
Cost 3 -$42,500 -$42,500 -$42,500 -$15,000 -$15,000
Total Costs (mid-year) -$98,300 -$98,300 -$98,300 -$70,800 -$70,800
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$98,300 -$98,300 -$98,300 -$70,800 -$70,800
Total Capital Costs $0
Total Whole of Life Costs -$436,500
Present Value of Costs (mid-year) -$94,589 -$87,583 -$81,095 -$54,082 -$50,076
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$94,589 -$87,583 -$81,095 -$54,082 -$50,076
Present Value of Costs -$367,424
Net Cash Flows $526,700 $526,700 $526,700 $554,200 $554,200
Net Present Value (by year) $506,817 $469,275 $434,514 $423,334 $391,976
Cumulative NPV $506,817 $976,093 $1,410,607 $1,833,941 $2,225,917
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.601$ 0.557$ 0.516$ 0.477$ 0.442$
Present Value of Costs ($million) 0.095-$ 0.088-$ 0.081-$ 0.054-$ 0.050-$
Cumulative Net Present Value ($million) 0.507$ 0.976$ 1.411$ 1.834$ 2.226$
4.8 Risk comparison
Potential risk Risk management
Nike may require huge funding for
incorporating the technology in their
products.
The management can approach the state
governments for necessary funding at the
initial stage.
Entrance of more competitors Nike can provide personalized products that
can effectively attract more customers.

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INNOVATION AND ENTERPRISE
Technology fail in the manufacturing process The organization requires a skilled work
force to handle the newly incorporated
technology
4.9 Integrated analysis and options ranking
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 295000 295000 295000 295000 295000
Benefit 2 225000 225000 225000 225000 225000
Benefit 3 105000 105000 105000 105000 105000
Total Benefits (mid-year) $625,000 $625,000 $625,000 $625,000 $625,000
Present Value of Benefits (mid-yr) $601,407 $556,858 $515,609 $477,416 $442,052
Present Value of Benefits $2,593,341
Cost 1 -$32,800 -$32,800 -$32,800 -$32,800 -$32,800
Cost 2 -$23,000 -$23,000 -$23,000 -$23,000 -$23,000
Cost 3 -$42,500 -$42,500 -$42,500 -$15,000 -$15,000
Total Costs (mid-year) -$98,300 -$98,300 -$98,300 -$70,800 -$70,800
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$98,300 -$98,300 -$98,300 -$70,800 -$70,800
Total Capital Costs $0
Total Whole of Life Costs -$436,500
Present Value of Costs (mid-year) -$94,589 -$87,583 -$81,095 -$54,082 -$50,076
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$94,589 -$87,583 -$81,095 -$54,082 -$50,076
Present Value of Costs -$367,424
Net Cash Flows $526,700 $526,700 $526,700 $554,200 $554,200
Net Present Value (by year) $506,817 $469,275 $434,514 $423,334 $391,976
Cumulative NPV $506,817 $976,093 $1,410,607 $1,833,941 $2,225,917
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.601$ 0.557$ 0.516$ 0.477$ 0.442$
Present Value of Costs ($million) 0.095-$ 0.088-$ 0.081-$ 0.054-$ 0.050-$
Cumulative Net Present Value ($million) 0.507$ 0.976$ 1.411$ 1.834$ 2.226$

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INNOVATION AND ENTERPRISE
Part 5: Deliverability of recommended solution
5.1 Details of recommended solution
The latest technology implemented in the footwear manufactured by night can
effectively reduce the injuries that the athletes suffered and can effectively improve the
performance of the athletes.
5.2 Commercial and financial
 The management of Nike should focus on the experiences of their target customers
 The manufacturer company should focus on reducing the production costs by utilizing
eco-friendly materials that can be re-used later.
 The entire manufacturing procedure should be technology driven in place of the
conventional shoe making technologies.
5.3 Management
 The managerial body of Nike should supervise the operational areas in order to ensure
the qualitative factors are maintained in their footwear.
 The target customers of the business organisation should be informed regarding the
latest technologies that are implemented in the footwear.
 Quality checks should be done after a certain interval, may be in every six months, so
that the company can track the development of the product and add more innovations
in the product.
 More investments should be made in the manufacturing operations.
5.4 Delivery
 In the business organisation, there will be performance measuring tools to ensure the
quality of the products that they are offering to their customers

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INNOVATION AND ENTERPRISE
 The management of Nike should abide by all the rules and regulations set by the
authorities of sports fraternity and the government.

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INNOVATION AND ENTERPRISE
References
Alderson, A. (2016). Sportstech-Self-adapting ski googles [Technology Product
Design]. Engineering & Technology, 10(12), 84-85.
Alderson, A. (2016). The pro's choice [golf balls]. Engineering & Technology, 11(7), 76-77.
Anttonen, S. (2015). Branding a Lifestyle: Case: Nike.
Balan, C. (2017). NIKE ON INSTAGRAM: THEMES OF BRANDED CONTENT AND
THEIR ENGAGEMENT POWER. In CBU International Conference
Proceedings... (Vol. 5, p. 13). Central Bohemia University.
Childs, M., & Jin, B. (2018). Nike: An Innovation Journey. In Product Innovation in the
Global Fashion Industry (pp. 79-111). Palgrave Pivot, New York.
Lee, H. L., & Tang, C. S. (2017). Socially and environmentally responsible value chain
innovations: New operations management research opportunities. Management
Science.
Mahdi, H. A. A., Abbas, M., Mazar, T. I., & George, S. A. (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. International Journal of Business Management and Economic
Research, 6(3), 167-177.
Manshahia, M., Das, A., & Alagirusamy, R. (2016). Smart coatings for sportswear. In Active
Coatings for Smart Textiles(pp. 355-374).
Manshahia, M., Das, A., &Alagirusamy, R. (2016).Smart coatings for sportswear. In Active
Coatings for Smart Textiles(pp. 355-374).

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INNOVATION AND ENTERPRISE
Montijn, M. (2017). Data-Driven Design for Emotional Engagement: Designing a digital
interaction for the Nike store.
PAGE, T. (2017). NOTIONS OF ETHICS IN TECHNOLOGY & DESIGN
EDUCATION. Journal on Management, 12(2).
Popp, B., & Woratschek, H. (2016). Sport, Social Media and Online Communities. When
Sport Meets Business: Capabilities, Challenges, Critiques, 120.
Power, E. J. (2017).Advanced knitting technologies for high-performance apparel.In High-
Performance Apparel (pp. 113-127).
Rogers, R., &Marres, N. (2016).Landscaping climate change: A mapping technique for
understanding science and technology debates on the World Wide Web. Public
Understanding of Science.
Smith, A. D. (2017). Exploring the Inherent Growth of e-Tailing via e-Personalization and
Technological Innovations. International Journal of Innovation in the Digital
Economy (IJIDE), 8(1), 19-46.
Vergragt, P. J., & van der Horst, T. (2017). The seven characteristics of successful
sustainable system innovations. In The Business of Sustainable Mobility (pp. 125-
141). Routledge.

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INNOVATION AND ENTERPRISE
Appendix A
1 2 3 4 5
-$2
$0
$2 Cost Benefit Analysis
Present Value of Benefits ($million)
Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Todays Dollars ($ millions)

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INNOVATION AND ENTERPRISE
Appendix B:
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 295000 295000 295000 295000 295000
Benefit 2 225000 225000 225000 225000 225000
Benefit 3 105000 105000 105000 105000 105000
Total Benefits (mid-year) $625,000 $625,000 $625,000 $625,000 $625,000
Present Value of Benefits (mid-yr) $601,407 $556,858 $515,609 $477,416 $442,052
Present Value of Benefits $2,593,341
Cost 1 -$32,800 -$32,800 -$32,800 -$32,800 -$32,800
Cost 2 -$23,000 -$23,000 -$23,000 -$23,000 -$23,000
Cost 3 -$42,500 -$42,500 -$42,500 -$15,000 -$15,000
Total Costs (mid-year) -$98,300 -$98,300 -$98,300 -$70,800 -$70,800
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$98,300 -$98,300 -$98,300 -$70,800 -$70,800
Total Capital Costs $0
Total Whole of Life Costs -$436,500
Present Value of Costs (mid-year) -$94,589 -$87,583 -$81,095 -$54,082 -$50,076
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$94,589 -$87,583 -$81,095 -$54,082 -$50,076
Present Value of Costs -$367,424
Net Cash Flows $526,700 $526,700 $526,700 $554,200 $554,200
Net Present Value (by year) $506,817 $469,275 $434,514 $423,334 $391,976
Cumulative NPV $506,817 $976,093 $1,410,607 $1,833,941 $2,225,917
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.601$ 0.557$ 0.516$ 0.477$ 0.442$
Present Value of Costs ($million) 0.095-$ 0.088-$ 0.081-$ 0.054-$ 0.050-$
Cumulative Net Present Value ($million) 0.507$ 0.976$ 1.411$ 1.834$ 2.226$
Appendix C:
Sign-off Checklist
Investment title:
Agency:
Y/N
Is the need clearly established (e.g. investment concept brief)?

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INNOVATION AND ENTERPRISE
Investment title:
Agency:
Y/N
Are the links to government policy(ies) and contributions explicit?
Is there a clear statement of the service benefits and project scope
and are future implications noted?
Are cost estimates provided for capital and operational phases?
Have cost and risk estimators signed off on the adequacy of their
work?
Is the project budget including the base cost estimate, risk
assessment, base risk allocation and contingency adequate?
Do cost and benefit estimates and analyses show value for money?
Are the project deliverables clearly stated?
Is a benefit management or evaluation plan included?
Are risk management processes in place and assumptions stated?
Does the proposal assess the project schedule and readiness
(including market appetite)?
Are governance structures identified?
Are stakeholder interfaces detailed?
Are regulatory requirements identified?
Is the project High Value/High Risk?
Have Gateway reviews been undertaken? Gate 1
Gate 2
This model checklist is designed for the project proponent’s endorsement.

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INNOVATION AND ENTERPRISE
Prepared by: ……………………………………………..…… Date:
…………………
Approved by: ……………………………………………..…… Date:
…………………
……………………………………………...
…………………………………………………….
(Name of approving officer or delegate) (Title)
Secretary: ……………………………………………..…… Date:
…………………