• A Supply Chain Stretched Thin:

  The pandemic laid bare the vulnerabilities of Nike's global supply chain. By relying heavily on Asian factories, the company found itself in a tough spot when these facilities were forced to shut down. The result was empty store shelves, delayed orders, and unhappy customers. It was as if Nike had built its house on shaky ground.

  
  

• Falling Behind on Sustainability:

  While the demand for eco-friendly products was soaring, Nike seemed to be lagging behind. While competitors like Adidas were diving headfirst into sustainable initiatives, Nike was slow to react. Although the brand eventually launched its own green campaign, it missed a golden opportunity to position itself as a sustainability leader.

• Personalization Lag:

  Today's consumers are looking for unique products adapted to their tastes. Unfortunately, Nike was a bit slow to catch it. While other brands were offering endless customization options, Nike stuck to a more one-size-fits-all approach. It was as if Nike was refusing to go with the flow.

  
  

In a nutshell, the pandemic highlighted Nike's weaknesses: over-reliance on Asia, a slow response to sustainability, and a lack of personalization.

To regain its position as a leader, Nike needs to act fast and decisively.

• Threat of New Entrants:
  Moderate: The sportswear industry has high barriers to entry due to capital requirements for research and development (R&D), branding, and manufacturing. However, niche markets are emerging and challenging Nike.

• Bargaining Power of Suppliers:
  Low to Moderate: Nike works with a wide range of suppliers in low-cost countries. Although some suppliers may have some bargaining power, Nike's size and global reach give it an advantage in negotiating favorable terms.

  
  

• Bargaining Power of Buyers:
  Moderate to High: Consumers have access to many alternative brands (e.g., Adidas, Puma…). E-commerce and social media have increased customers' bargaining power, allowing them to easily compare prices and products. As a result, customer loyalty is harder to maintain.

  
  

• Threat of Substitutes:
  Low: The threat of substitutes in Nike’s main markets (sportswear, footwear…) is low. There are few alternatives to sportswear for sports and fitness activities. However, fashion trends can evolve, offering new possibilities.

  
  

• Industry Rivalry:
  High: The sportswear industry is highly competitive, with major players constantly innovating and engaging in marketing battles. Nike’s dominant market position is continuously challenged by these rivals.

Thanks to the Covid 19 crisis, we have seen that centralizing its factories in one region of the world, country, etc. could be a big risk. Nike must reduce its dependence on Asia by diversifying its factories, particularly in Europe and America. Because during covid 19 some of its factories were closed and severely disrupted its production. This would reduce the risks associated with local crises.

Nike must use more recycled materials and reduce its environmental impact throughout its production chain to meet the growing demand for eco-friendly products.

Online sales will become more and more widespread in the coming years. Nike must therefore further improve its online sales platforms to provide consumers with a better shopping experience.

In 2024, we can see that artificial intelligence is becoming increasingly important and can facilitate many tasks. By investing in automation and AI, Nike could become more efficient and reduce its costs.