it is too big. Too bloated. Too bureaucratic.
I don't think EH can turn this big ship without grounding it.
Not even his Grandma can turn Nike around.
MP just rode the ride and let it get big.
JD drove this 18 wheeler to the ditch.
EH cannot pull it out the ditch nor has ability to pull it out.
Since you cannot turn around HMS Titanic in this harbor, the only solution is to cut the company into different pieces and run it separately and make it more aggressive.
Nike is big but they are not really good in anything. They are just big.
Now that they need to make some changes, they have no answer.
In the beginning, (decades ago), Nike became successful because it marketed to the average, active, athletic, US customer. Over time, it slowly shifted to more and more niche marketing, ignoring its base. Then, about 6 years ago, it completely switched to niche marketing, to the point of alienating its base.
Throw in public concerns over child slave labor usage, overt political stances, and well-known internal corporate policies that violated federal laws against race and s-x discrimination, and it has alienated a large part of its original customer base. They're not coming back and no amount of financial or reorganization shenanigans will bring them back. Nike migrated from mainstream to a niche market, all of their own doing. And a niche is always, by definition, smaller than mainstream.
Nike won because of one competitive advantage, being an american brand. Access to us capital markets, large domestic market that was a consumption engine, having uncle sam to scare southeast asian sweatshops governments, being associated with freedom and liberty yada yada
Now the empire ise collapsing and nike never invested back to fundamentals to ensure future growth during its bo-m just like the US. Poor and crumbling infrastructure, bloated and wasteful bureaucracy, only being able to solve problems via throwing money at them and a history of belligerence.
It is over
The american consumer is doing bad due to income inequality and corporate consolidation and the rest of the world is simply tired of America’s cr-p.
Both the US empire and Nike lack any meaningful story to tell to Americans or to the rest of the world. The shining city on the hill is suffering from rolling blackouts.
I think the MLB was a bad pick up for us. Should’ve just kept it to NBA and NFL, along with pro soccer.
@OP Let;s split Nike's business.
I know I am missing few more categories but that is something that I can come out of my head, now.
This is reminiscent of adidas in the 1970s. adidas was in so many areas, they were convoluted and difficult to execute. And when Mr. adidas passed in 1978 and his son Horst died in 1987, it left the big hole for Nike to blow by.
Today's Nike is so big that it is like comparing a whale to a tuna yet issue is same in my opinion.
The issue with Nike is same with many corporation that got too big for their own goods.
Perfect example would be GE.
In my humble opinion, splitting companies to 3 or 4 division with their own Executive Officer that reports to CEO is the way to go in my opinion. And cut out or sell business that does not help the company.
If Nike remains status quo, the next stop for NKE is teens