What's gone wrong at Nike? How the world's sportswear giant lost its mojo
Several self-inflicted mistakes have cost the biggest sportswear brand on the planet in recent years.
Nike, the world's largest sportswear brand, has faced challenges in recent years. The company, once a disruptor, now finds itself in a tricky turnaround plan to maintain its market dominance. Elliott Hill, a veteran leader returned from retirement, is spearheading this effort, but progress is slow. The recent loss of football star Kylian Mbappé to Swiss rival On has raised concerns about Nike's ability to retain top athletes and their fan base.
Nike's share price has plummeted by 75% over five years, and it was recently removed from the S&P 100 index. Analysts suggest several strategic errors have hampered Nike, such as selling shoes directly to customers online and prioritizing digital operations over new products. This shift may have inadvertently made the brand less appealing to a broader audience.
The company's aggressive focus on innovation in digital operations may have overlooked the importance of product innovation. Nike's partnership with basketball legend Michael Jordan in the 1980s transformed the company, but the current leadership seems to be prioritizing digital over physical products, risking losing its competitive edge.
Despite these challenges, Nike remains a mega brand worldwide, and its turnaround plan, Sport Offense, aims to restore its dominance.
Written by urgent.news from BBC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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