1.

INTRODUCTION AND OVERVIEW

CUSTOMER PERSONALISATION:

Role of Nike's digital ecosystem in improving Customer Experience (CX)

The digital ecosystem of Nike has been designed

to offer customers a good, wonderful, and
compelling experience even after purchase.
Nike Membership and the Nike App: The Nike
Membership programme that can be accessed via
the Nike App makes the experience for a customer
tailored as customers reap in early access to new
products and exclusive discounts
In 2023, Nike found out that the membership
program had gone above 150 million members
that proves that it has the capability of exemplary
customer loyalty

• Nike Training Club (NTC) and Nike Run Club

(NRC) Apps: Through this application service,
Nike can directly communicate with customers
beyond the point of sale and deepen much-loved
relationships, thus setting aside lasting loyalty. In
addition to such attributes, there are other value-
added services provided beyond information on
products
For example, The NTC apps offer customers free
workout routine and fitness content

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This is essentially the NRC application, allowing for running and tracking for runners.

• Seamless Online-to-Offline Experience:

Nike delivers an experience of seamless online to offline through features like Nike Fit-an
application with AI enabling customers to find their shoe
It also helps customers locate Nike stores in their vicinity, which increases in-store visits while
improving the online shopping experience

NIKE's use of technology

• Machine Learning and AI for Personalized Recommendations: It involves high-end
technologies, such as AI and machine learning, to analyze the data of the customers to find the
preference of the customer. All this information enables NIKE to suggest the product that may
suit the customers. This approach would increase the chances of people interacting with the
brand and purchasing the product that would be suggested to them.
• Virtual Try-On using AR Nike has enabled Augmented Reality ( AR ) in its application,
and thus the customers can virtually try out shoes before purchasing the product. This feature is
entertaining, engaging, but it serves as a source for valuable information on the availability of
products to aid consumers during the purchase.
Accenture's 2022 survey further states that 71 percent consumers opt for such brands which
Case AR
provide Study: Success of Nike's "House of Innovation" Stores : NIKE has launched its "
experiences
Houses of
•Dynamic Innovation"
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These stores rely on Interactive digital displays, AR fitting rooms and other
strategy in turn makes the prices competitive, without incurring loss and with a maximum high end
tech.
profit.
These stores also provides unique app features such as the ability to reserve products
forStudy:
Case in storeSuccess
try outs.
of Nike's "House of Innovation" Stores : NIKE has launched its "
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Paris and Shanghai are andclassic
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examples of how
brand should leverage digital innovations to strengthen their customer experience. These
stores rely on Interactive digital displays, AR fitting rooms and other high end tech.

pg. 2
These stores also provides unique app features such as the ability to reserve products for in
store try outs.
This technology integration and in-store creates a stimulating and attractive experience for
customers that encourages customers to spend more time in-store, thereby increasing the
likelihood of closing a sale

Nike's Digital Marketing Campaigns

Nike also employs its digital marketing strategy to reach specific customer types with specific
messages
For example: The "Dream Crazier" campaign targeted the female athletes through data
analytics, this campaign gained tremendous social media traction, and in addition to that, it also
provided NIKES 20% more sales of women's products for the months post-launch

NIKES PERSPECTIVE ON CUSTOMER FEEDBACK

Nike accords much importance to customer feedback because it is one of the most motivating
drivers of its CX strategy. Nike seeks and responds to customer feedback so that it continues to
improve its products and service.

1. Listening to Customers through Digital Channel: Nike analyses the trend and what needs to
be improved by listening to customers through its digital channels where the customers post
their feedback, shopping experience, and brand perception.
Ex. Customer feedback offered to NIKE APP led to developing new features such as
personalized homepages and product recommendations.

2. Customer feedback used in product development: Actually, this company uses customer
feedback in its product development process to ensure that it manufactures products that the
customers need and, of course, prefer. For instance, such developments led to the production of
the Nike React running shoe. The major component of this Nike product was influenced by the
request of the runners who wanted a light yet durable shoe. It is through incorporating such
feedback in the process of designing that Nike managed to create a best-seller product that
really resonates with its target market.

3. Continuous Improvement Based on Customer Insights: Nike ensures continuous

improvement and regularly updates its digital platforms and services based on customer
insights. For instance, after receiving negative feedback related to the checkout process
complexity, Nike streamlined the process, which eventually increased conversion rates by 15%.
Thus, this responsiveness to customer comments reflects the commitment Nike has placed in
delivering excellent customer experience.

pg. 3
Challenges with Consistency in Digital CX at Nike
Though Nike has successfully ensured there is a digital-first CX strategy, consistency between
its digital and physical stores constitutes a huge challenge.

Seamless Omnichannel Experience: One of the biggest difficulties which Nike faces is that it
will have to ensure a seamless experience across channels. Customers are constantly moving
between online and offline interactions, so maintaining the continuity is quite tough-be it in
terms of messaging or service quality or overall brand experience. It offsets this difficulty by
having integrated technology systems and also extensive training programs that ensure all
employees across the lines of all channels are aligned to deliver the same experience.
Managing digital innovation with legacy systems: As Nike continues its work on innovating
digitally, it must manage integration of new technologies with what may be existing systems.
This shall cost a significant amount of money for investment in IT infrastructure as well as
constant collaboration between IT and business units to ensure that new digital tools enhance
the customer experience and not disrupt it.

Adaptation to Trends in Digital Innovation and Evolution in Consumer Expectations: As

technology innovation is rapid, several changes are felt in digital trends, and the expectations of
the consumer. Therefore, Nike has to continually evolve digital strategies to keep one step
ahead of its competitors. This involves keeping up with trends and being proactive to test new
technologies as well as change rapidly through customer and market dynamics.

How Does Nike's Digital CX Strategy Differs than the Competitors?

pg. 4
 How Does Nike's Digital CX Strategy
Differs than the Competitors?
Nike's approach in its digital CX differentiates it from the other
brands that play in the sports apparel and footwear market. Emphasis
on Personalized Digital Engagement Just as the other competitors
might shift their attention to the headline features of their product or
the price tag, Nike puts an emphasis on personalized digital
engagement. These are apps, media social sites, and online platforms
that come to provide a tailored experience that tugs on the heart of
individual customers and helps to build deeper connections.

•
Blending of Digital and Physical Experience: What differentiates the company is its strong
ability to blend digital and physical experiences. While Nike Fit is able to connect customers
with in-store experience, application-specific features in stores could eventually enhance the
shopping experience for all channels in order to complete and engaging journey for customers.
A sound digital CX strategy is a key basis for differentiation in today's marketplace. The
winners are those who use technology to deliver an individualized and frictionless experience
for customers. As with the Nike case, there are lessons for firms that wish to enhance their
digital CX strategy.

Final Words on Nike Digital Customer Experience Excellence

Nike has greatly succeeded in behalf of innovation, personalization, and customer engagement
in the digital customer experience. With advanced technology, data analytics, and a solid digital
ecosystem, Nike creates a dynamic and engaging customer journey that builds loyalty and
propels growth. Opportunities exist for businesses across all industries to learn from Nike's
approach to creating a truly exceptional customer experience in today's ever-more-digital-savvy
consumer market, while the continuous evolution of Nike's digital CX and exploration of new
opportunities in digital innovation continues. At Renascence, we believe companies could
improve their very own digital customer experiences and subsequently succeed even more in
this increasingly competitive market by following similar approaches.

2. SURVEY METHODOLOGY

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 This section provides an overview of the survey conducted on Nike Inc, and its consumer
base, with a specific focus on the company's digital transformation and e-commerce
strategies. The objective of the survey was to gather insights into how Nike's ongoing
digital initiatives are perceived by its customers and to evaluate the impact of these
changes on consumer satisfaction and purchasing behavior.

By examining consumer perspectives, the survey aimed to assess the effectiveness of

Nike's digital transformation efforts in enhancing the overall shopping experience and
meeting evolving consumer expectations in the digital age.

The survey was designed to capture a broad range of demographic data, ensuring
diverse representation across key consumer segments. The findings reflect consumers'
views on the benefits of digital advancements in Nike’s business model, particularly in
relation to e-commerce, and how these innovations have influenced their interactions
with the brand.

2.1) Number of Participants – 9 Members

2.2) Participants profile -

Participant 1 (P1) Participant 5 (P5) Participant 9 (P9)

19+ (F) 24+ (M) 39+ (M)
Student Professional Cricketer Local Football club owner
Participant 2 (P2) Participant 6 (P6)
20+ (F) 20+ (M)
Student State Footballer
Participant 3 (P3) Participant 7 (P7)
56+ (M) 56+ (M)
Banker BSF Officer
Participant 4 (P4) Participant 8 (P8)
49+ (F) 76+ (F)
Housewife Retired Teacher

2.3) Targeted demographic

The survey primarily targeted consumers within the age group of 16 to 25, as this
demographic represents a key segment of Nike's digitally engaged audience.

Additionally, to gain a broader perspective on how Nike's digital transformation efforts

resonate across different age groups, the survey also included participants aged 50 and

pg. 6
above. This approach provided valuable insights into how Nike has adapted its strategies to
cater to both younger, tech-savvy consumers and older customers, allowing for a
comprehensive understanding of the brand’s ability to meet the diverse needs of its growing
customer base.

2.4) Types of Questions

The survey adopted a simple and easy-to-understand comparative format, where participants
were asked to select between Nike, Adidas, and Puma based on various criteria. This structure
allowed respondents to directly compare the three brands across different aspects such as
product quality, innovation, pricing, and customer service. By choosing their preferred brand
for each question, participants were able to provide clear insights into their preferences and
perceptions.

This format facilitated a straightforward collection of data, offering a clear picture of how Nike
performs relative to its key competitors. The responses gathered from these comparative
questions will be used to conduct a detailed analysis, helping to assess Nike’s competitive
strengths and weaknesses in the marketplace. This data will ultimately contribute to
understanding the brand's positioning and how it can further align with consumer expectations
in a highly competitive industry.

2.4.1) Questions and their responses

Following are the questions and people who responded and picked their companies, this gives
us a brief idea where Nike lacks and needs to buckle up.

1. Which brand do you believe offers the highest overall product quality?
o Nike o P2 o P6 o P9)
(P1

o Adidas o P7) o o
(P5

o Puma o P4 o P8) o
(P3

2. In terms of innovation (e.g., technology, materials), which brand do you think leads in the
market?
o Nike (P1,P2,P3,P4,P5,P6,P7,P9)

o Adidas (P8)

pg. 7
 o Puma

3. Which brand offers the most satisfying pricing in relation to the quality of products?
o Nike

o Adidas

o Puma (P1,P2,P3,P4,P5,P6,P7, P9)

4. When it comes to Product design (e.g., style, aesthetics), which brand do you prefer?
o Nike (P1,P2,P3,P4,P5,P6,P7, P8, P9)

o Adidas

o Puma

5. Which brand do you find provides the best customer service (e.g., responsiveness, support)?
o Nike (P1,P2,P4,P5,P6,P7)

o Adidas (P3)

o Puma (P8,P9)

6. Which brand provides the best digital shopping experience (e.g., app usability, website
functionality)?
o Nike (P1,P2,P5,P6,P7,P9)

o Adidas (Rest did not have an opinion)

o Puma

7. Which brand offers the most effective Personalization features (e.g., custom products, targeted
marketing)?
o Nike (P1,P2,P5,P6,P7,P9)

o Adidas (Rest did not have an opinion)

o Puma

8. Which brand do you believe is leading in sustainability initiatives (e.g., eco-friendly products,
responsible manufacturing)?
o Nike (P1,P2,P3,P4,P5,P6,P7,P8,P9)

pg. 8
 o Adidas

o Puma

9. Which brand do you feel offers the widest variety of products?

o Nike (P1,P2,P5,P6,P9)

o Adidas (P7,P8)

o Puma

10. Which brand’s overall brand appeal (e.g., endorsements, marketing campaigns) do you find the
most attractive?

o Nike (P1,P2,P5,P6)

o Adidas

o Puma (P3,P4,P7,P8,P9)

This survey provided valuable insights into the areas where Nike excels compared to its
competitors, as well as highlighted the specific aspects in which Nike needs improvement. By
comparing Nike with Adidas and Puma, the survey helped identify key trends and illustrations
of Nike's strengths, such as product quality, innovation, and digital experience.

3. SURVEY FINDINGS AND ANALYSIS

pg. 9
 Comparative analysis of Nike, Puma and Adidas

9.5
9 9 9

8.5
8

7.5

6.5
6 6 6

5.5
5

4.5
4

3.5
3

2.5
2 2 2 2

1.5
1 1

0.5
0 0 0 0 0 0 0 0 0 0 0
Overall prod- Innovation Price Justifica- Product design Customer ser- digital shop- Personalization sustainability Variety
uct quality (e.g., technol- tion (e.g., style, aes- vice ping experi- initiatives
ogy, materials) thetics)4 ence

Nike 4 8 0 9 6 6 6 9 5
Adidas 2 1 0 0 Nike 1
Adidas Puma 0 0 0 2
Puma 3 0 9 0 2 0 0 0 2

In all aspects of product quality, innovation, product design, digital shopping

experience, customer service, personalization, sustainability, and product variety,
featherlight Nike outshines its competition, favorable being a point to note which
strengthens Nike's grasp within the market in keeping pace with fast-changing customer
demands. Price justification, however, is another aspect where much room is left for
improvement, since the comparison studies show that consumers are given a lesser favor
to Nike's price as compared to its competitors, leaving a wider gap for the enhancement
of its customer-aligning pricing strategy as part of Nike's approach.

One last overview question was asked about which company consumers would prefer
among Nike, Adidas and Puma, in which 7/9 consumers preferred Nike (77.7%), 2/9
preferred Adidas (22.2%) while no votes for Puma.

Following is a pie chart showcasing the data

pg. 10
 Consumer Sati sfacti on
NIKE Adidas Puma

22.22%

77.77%

4. SWOT & PORTER'S FIVE FORCES ANALYSIS

4.1) SWOT Analysis

STRENGTH WEAKNESS

SWOT

OPPORTUNITIE THREAT
S

4.1.1) STRENGTHS
Innovation Leadership

pg. 11
 Nike scores 8 in innovation, signifying its ability to take the first leadership position
with respect to cutting-edge technology and materials-a considerable competitive
advantage over Adidas (1) and Puma (0).

Product Design

With a product design score of 9, Nike is one step beyond Adidas and Puma, both of
which were ranked at 0 on stylishness and aesthetics. Nike's added style appeal is strong
in drawing the style-conscious consumers.

Customer Service

Nike has a customer service score of 6. Little wonder-stringent customer support is its
strongest point against Adidas (1) and Puma (2).In short, customers enjoy a better
experience with Nike in customer service.

Digital Shopping Experience

Nike really prove themselves a winner in their digital shopping experience, scoring 6,
while Adidas and Puma rated 0 for their ability to effectively keep up with the e-
commerce trend of consumers.

Sustainability Initiatives

With a score of 9 in sustainability, Nike shows a strong commitment to ecologically

friendly practices, positioning it in pole position within the race, with score noshows in
Adidas and Puma.

4.1.2) WEAKNESS
Price Justification

Nike reaches a 0 in price justification, implying consumers think that the value does not
meet the price charged for the brand. In contrast, Puma gets 9, indicating price as
critical area for Nike to improve, which in turn could help retain or attract price-
conscious consumers.

Variety of Products

pg. 12
 Nike has scored 5 in variety, being moderate and thus comes under competition of
Adidas and Puma, respectively, scoring 2. Whereas it is still a market leader in variety,
much improvement can be made to make its products stand further isolated from
others.

4.1.3) OPPORTUNITIES
Enhancing Price Perception

As Puma is seen to be offering better price justification, as far as being a weakness , it

is also an area for opportunities for Nike. It can either change its pricing strategy or make
consumers more aware of the pricing strategy.

Expansion in Personalization

Nike’s score of 6 in personalization shows it is ahead, but with Adidas and Puma
scoring 0, there is a significant opportunity for Nike to expand its personalization
options (e.g., custom designs, tailored marketing), further strengthening its lead in this
space.

Increasing Product Variety

With a score of 5 in this category, Nike still has a long way to go and still can
work as to provide more variety to a larger age group

4.1.4) THREATS
Price-Sensitive Consumers
People in India as especially price sensitive when it comes to companies wanting to serve
a bigger consumer base, so as Puma here scores 9 in the following category, Nike has a
lot of room for improvement.

Intense Competition in Product Quality

Nike leads in the said category with 4 but still Puma has a score of 3, which tells us that
competitors are closing the gap very fast. Eaves a room for improvement for Nike.

4.1.5) CONCLUSION
Nike’s strong performance in innovation, design, and sustainability draws a great line of
difference in competing with its competitors. The firm has to find ways to develop
justifiable pricing strategies or to diversify its product lines in order to meet market

pg. 13
 needs. By leveraging its strengths against threats, Nike has every reason to build on its
position in the marketplace and diminish competitive pressure from Adidas and Puma.

4.2) PORTER’S 5 FORCES MODEL ANALYSIS

Porter’s Five Forces Model helps in understanding the competitive dynamics within an
industry. Based on the data provided for Nike, Adidas, and Puma, here is an analysis of

Competitive Rivalry

Threat of New Entrant

Barganing power of Buyers

Bargaining power of Suppliers

Substitutes

the forces affecting Nike's market position.

4.2.1). Competitive Rivalry (High)

Strong Competition:

Every other well-established brand in sportswear competition against Nike is Adidas and
Puma. While at any time, there can be legitimate talk about Nike's embrace of

pg. 14
 innovation (8), product design (9), and sustainability (9), competitors like Puma
engage in price justification (9) while Adidas becomes known with its fierce marketing
strategies and unexpected product launches.

Variety of Offerings:

Nike has scored 5 in this category, its does have a lead but the competitors have a score
of 2 each, if the competitors ever try to close the gap then it would lead to a high risk in
the category.

Product differentiation:

The evidence shows that Nike has more categories with their performance brand than
Puma has, and it can be argued that the level of competition is actually tight, especially in
product quality and pricing. Rivals Adidas and Puma increasingly encroach upon an area
of already fierce competition: Quality and Pricing.

4.2.2) Threat of New Entrants (Low to Moderate)

Strong Brand Identity:

The recognition of Nike on a global level, along with its brand established around the
idea of innovation, product design, and sustainability, gives rise to very high entry
barriers. To achieve, in terms of establishing consumer trust and recognition, the same
effort would require investments at par with Nike.

Two-Way Economies of Scale:

Nike benefits from the ability to produce on a very large scale. The very large
numbers that allow it to run efficient production processes should allow it to keep its
costs, for instance, for its sneakers, much lower than that of many new entrants coming
into the industry.

High Investment Requirements:

The sportswear industry requires heavy investments for technology, marketing,

distribution, and supply chain. Given Nike’s strong digital results, with an average score
of 6 out of 10 in the digital marketplace, it is difficult for any potential competitors to
take it head on.

4.2.3).Bargaining Power of Buyers (Moderate to High)

Price Sensitive-

pg. 15
 Consumers are becoming more price-sensitive, as indicated by Nike's score of 0 on
price justification while Puma received a 9. This means that customers may switch
brands if they feel they are getting a better offer elsewhere; hence, consumer bargaining
power increases.

Product Choice-

Consumers have several alternatives in the market (Adidas, Puma, Under Armour),
giving them greater leverage in price, design, and market demand.

Brand Identity Loyalty-

While buyers have several options to choose from, Nike's quality in brand loyalty
through innovation and design leadership gives it a certain amount of negotiating power.
Other aspects whereby Nike performs strong, such as personalization (score: 6) and
sustainability (score: 9), enable it to maintain its loyal clientele, therefore moderating
buyers' bargaining power.

4.2.4). Bargaining Power of Suppliers (Low to Moderate)

Global Supply Chain:

Nike has robust global supply chains which allow them to source raw materials through
multiple suppliers. This narrows down the overall bargaining power of individual
suppliers to a lesser extent, since it always has choices for switching over to some other
vendor for getting better prices or terms.

Supplier Dependence:

Suppliers that sell to Nike often have an upper hand because of their size and clout,
thereby allowing Nike to have a lesser bargaining power since being a Nike supplier
often leads them to prospects of rewarding business.

Material Innovation:

With an impressive innovation score of 8, on being innovative about the materials and
technologies that must be provided, the supplier must innovate. This gives Nike
technology leverage over its suppliers since they must meet the market requirements in
terms of willingness.

4.2.5). Threat of Substitutes (Moderate)

pg. 16
 Athleisure Trend:

A movement towards athleisure wear is evident and customers could easily transfer from
sport-specific products to more casual fashionable items that are comfortable and look
good, possibly replacing the old standbys of Nike.

Competitor Substitutes:

Well not exactly the same but Adidas and Puma have a large variety of products that can
substitute for Nike. Especially with Puma having a strong price advantage (9 on price
justification) it can become a substitute for those who are concerned about price.

Lifestyle Brands:

Even non athletic brands that specialize in comfortable and casual clothing (i. e. fast
fashion or luxury brands with sports inspired lines) can be competition because they are
providing alternatives in casualwear, sneakers, and street wear.

4.2.6). CONSLUSION

Competitive Rivalry is the most powerful factor affecting Nike's position in the
market because of some very serious competition from Adidas and Puma.

Buyer power is strong, because the consumers are very price-conscience and can easily
switch to other competitors who provides better pricing.

Substitutes and New Entrants are of moderate strength, there is some pressure from
lifestyle brands and the new athleisure trends however, the high barriers to entry keep
Nike safe from new players.

Supplier power is still low because of nike's large scale and constant innovation, which
puts their suppliers on a lower level.

Nike still has the upper hand with innovation, product design, digital experience,
etc. but they have yet to address the issue of price, which is where the competition is
slowly creeping up on them (PUMA in particular has a distinct advantage in the price
perception category).

5. STRATEGIC RECOMMENDATIONS
5.1) Price Strategy Adjustment to Improve Price Perception

5.1.1)Survey Data Insight:

pg. 17
 Nike got a 0 on price justification and Puma got a 9, so consumers must feel that Puma
is a better value for what they get.

Re-Evaluate Pricing Strategy:

Nike needs to make some cheaper lines or have more sales for those who are price-
conscious. Advertise the high quality and the "innovativeness" of Nikes to make
people think that they are worth so much more.

Tiered Pricing Model:

Have a variety of products for the upper class and lower class consumer. Nike could
very easily release lower-end products for the newer market, but still keep their high-
end products for the loyal, "brand" conscious consumer.

Enhanced Communication on Value Proposition:

Nike needs to better communicate the value of its products, particularly

highlighting the technology, design, and sustainability features that justify the
pricing.

5.1.2) Capitalize on Health and Wellness Product Trends

Health and wellness is a big thing nowadays, especially after the pandemic, everyone
is on the fitness kick and the mental stability kick and the active lifestyle kick.

Nike needs to expand its line of products to more wellness oriented things like
performance wearables, at home work out equipment, meditation tools, ergonomic shoes
for both athletic and casual use.

Collaborate with Fitness & Wellness Influencers:

By affiliating themselves with fitness gurus, wellness gurus, and physical fitness
organizations, Nike will be able to establish more credibility and solidify their standing
among the health conscious consumer base.

6. CONCLUSION
In conclusion, the analysis of Nike's performance, both relative to its competitors and
through internal assessments, demonstrates the company’s strong position in the global

pg. 18
 sportswear market. Nike has long been a pioneer in the athletic apparel and footwear
industry, and the findings from this survey and data analysis underscore its continuing
leadership in key areas such as innovation, product design, and sustainability initiatives.

SWOT analysis Nike's strengths are above all else it's product quality, its name, its
techological strides, and its environmental friendliness. Nike’s consistent innovation in
materials and technology, coupled with its industry-leading digital shopping experience,
positions the brand as a dominant player in an increasingly competitive market. But the
SWOT does show that Nike has room for improvement, one in pricing strategies and the
other in customer personalization.

The Porter’s Five Forces analysis shows a very competitive industry where Nike is
constantly being threatened by other large competitors such as Adidas and Puma, as well
as new entrants and possible substitutes in the athleisure world. However, nike has a very
well developed global supply chain, tremendous brand loyalty, and economies of scale,
all which stave off the threat of new entrants and decrease the bargaining power of
suppliers, so it is on pretty firm ground to keep its competitive advantage. Yet, buyer
power continues to be an issue, because consumers are more price conscientious and this
is exemplified by Nike's lower price justification scores relative to its competition,
namely Puma.

The survey data itself speaks volumes, as it compares Nike's image with that of Adidas
and Puma. They have great product innovation (8), their product design is amazing (9),
and they have really cool sustainability initiatives (9), and they totally beat out all the
other companies in customer service, personalization and digital shopping experience.
However, Nike's 0 score in price justification signals a critical area for improvement,
with many consumers perceiving its products as expensive compared to Puma, which
scored a 9 in this category. This just goes to show that nike really needs to reconsider it's
pricing if it wants to stay in the game, especially with today's consumer being extra
frugal.

The movement towards sustainability, digital transformation, health and wellness, remote
work solutions, and personalization in customer experience are also
obstacles/opportunities for Nike. sustainability Nike has already set itself apart as a leader
here, and with the continued use of eco-friendly materials and transparent business
practices, it will continue to dominate in this ever-growing consumer base. In the same
way, the transition to digital transformation and e-commerce expansion fits in very well
with Nike's plan to strengthen its digital presence, refine the online purchasing
experience, and employ unique digital technologies such as augmented reality (AR) and
AI-based customization.

pg. 19
 The new health and wellness products would be a great area of expansion for Nike. As
consumers place increasing importance on mental and physical well-being, Nike is well-
positioned to introduce products that support holistic health, including performance-
enhancing wearables, ergonomic footwear, and home workout solutions. Besides, with
telecommuting becoming more and more of a trend, Nike could take advantage of the
need for clothing that is comfortable and acceptable enough to wear at home, yet
professional enough to wear in front of the boss during a business meeting.

Nike already has an advantage when it comes to personalization, but can still do more.
Today's consumer is growing more and more accustomed to personalization and with AI,
Nike can easily provide more personalized shoe suggestions and experiences, so that the
consumer always feels like an individual. Also, with personalization becoming an
increasingly important factor in the athletic apparel industry, improving the Nike By You
service and adding more personalization aspects to both the online and in-store shopping
experiences will not only increase customer engagement but also loyalty.

Strategic Recommendations:

From this analysis, these are some strategic recommendations to help Nike keep and
expand its dominance in the marketplace:.

1. Reassess Pricing Strategy: Nike should address consumer concerns about pricing by
introducing tiered pricing models, expanding its budget-friendly product lines, and
effectively communicating the value proposition of its products. That way the price of
Nike's products won't seem so high, but they will still be a premium brand.

2. Focus on Sustainability Initiatives: Nike needs to keep growing in the direction of

sustainabillity, not just with the products they make but also in the way they make them,
full circluar production models. Collaborating with sustainability influencers and
ensuring transparency in environmental reporting will strengthen consumer trust in the
brand.

3. Leverage Digital Innovation: Improving the online shopping experience needs to be

number one. Nike should invest in AR, AI-product recommendations, and mobile
integration, the company will be able to gain a competitive edge in digital, and offer more
personalized and immersive shopping experiences.

Nike needs to branch out into more health and wellness products such as fitness
wearables, home gym equipment, and ergonomically sound clothing for telecommuters.
With consumers becoming more and more focused on wellness, Nike can market itself as
a whole lifestyle.

5. Increase Personalization Capabilities: Nike will have to keep improving its

personalization capabilities (through its website and in store) in order to maintain its

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 edge. Nike could also go even further in its efforts to foster brand loyalty and customer
satisfaction by providing extremely individualized product suggestions, and custom-made
products, as well as unique rewards for their most loyal customers.

6. Capitalize on Remote Work Trends: Nike should start some kind of Sahana line
geared towards the telecommuter, comfortable, but hip athleisure for those of us who
work from home a lot more now.

Final Thoughts:
Nike holds such a large share of the market because of its constant emphasis on
innovation, design, and sustainability*, which are all unique advantages over the
competition. Nontheless, in today's competitive and price conscienscious world, Nike
must continue to adapt to consumer's ever changing needs. That is, if Nike could only
focus on price issues, move along on sustainability, and take full advantage of digital
transformation, then it could not only continue to lead but also capitalize on new growth
areas in emergent market trends. This thorough analysis along with the survey feedback
gives Nike a plan to maintain and improve its presence in the market, change with
consumer demands, and remain a force in the world of athletic wear

7. REFERENCES
Nike Inc. (2023),
Annual Report. Retrieved from Nike Official Website.

Porter, M. E. (1985),
Competitive Advantage: Creating and Sustaining Superior Performance. New York:
Free Press.

Kotler, P. & Keller, K. (2016),

Marketing Management. 15th ed. Pearson Education.

Deloitte (2023),
The Future of Sports Retail: Navigating Digital Transformation and Sustainability
Trends. Retrieved from Deloitte Insights.

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 McKinsey & Company (2022),
The Rise of Personalization in Retail: Consumer Expectations and Brand Response.
Retrieved from McKinsey Insights.

Adidas Annual Report (2023),

Adidas Financial & Sustainability Reports. Retrieved from Adidas Website.

Puma Annual Report (2023),

Puma's Corporate Social Responsibility and Performance Overview. Retrieved from
Puma Corporate Website.

Statista (2023),
E-commerce and Digital Market Insights for Sportswear. Retrieved from Statista
Website.

Boston Consulting Group (2023),

The Consumer of the Future: Digital Trends and Health & Wellness Preferences.
Retrieved from BCG Insights.

8. APPENDICES

Appendix A: SWOT Analysis Data Table

Metric Nike Adidas Puma
Overall Product 4 2 3
Quality
Innovation (e.g., 8 1 0
technology,
materials)
Price Justification 0 0 9

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 Product Design 9 0 0
Customer Service 6 1 2
Digital Shopping 6 0 0
Experience
Personalization 6 0 0
Sustainability 9 0 0
Variety 5 2 2

Appendix B: SWOT Analysis Table

 Strengths: Product quality, innovation, sustainability, digital shopping experience,
personalization.
 Weaknesses: Price justification.
 Opportunities: Expansion in health & wellness products, personalization, eco-friendly
products.
 Threats: Competitive pricing from Puma, increasing buyer power due to digital
transparency.

Appendix C: Survey Demographics

Age 16-25 (majority) and 50+ (some participants) for wider analysis
Sample size: 9 respondents

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