Scribd
Upload
420 views1 page

1.3. Nikes's Triple Double Strategy

Nike unveiled a Triple-Double Strategy to drive sales growth through technology-powered innovation. This included the Nike Customer Experience platform which helped currency-neutral sales grow 10% last quarter. Nike has brought more shoe styles to market faster and gotten merchandise to customers quicker through new technologies. Nike's changes addressed threats from competitors like Under Armour and Adidas while it wasn't paying attention. The strategy overhauls have benefited customers and retailers are being asked to embrace Nike's new approach.

Uploaded by

Santhosh Kumar Rao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
420 views1 page

1.3. Nikes's Triple Double Strategy

Nike unveiled a Triple-Double Strategy to drive sales growth through technology-powered innovation. This included the Nike Customer Experience platform which helped currency-neutral sales grow 10% last quarter. Nike has brought more shoe styles to market faster and gotten merchandise to customers quicker through new technologies. Nike's changes addressed threats from competitors like Under Armour and Adidas while it wasn't paying attention. The strategy overhauls have benefited customers and retailers are being asked to embrace Nike's new approach.

Uploaded by

Santhosh Kumar Rao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Nike’s Triple-Double Strategy Should Boost NKE Stock

In the middle of last year, athletic apparel giant Nike (NYSE:NKE) unveiled a big initiative. Dubbed a
Triple-Double Strategy, it involves utilizing more technology-powered innovation to drive sales
growth, benefiting owners of Nike stock. Slowly but surely, we’ve seen baby steps down that path.

As of last quarter, however, shareholders started to see the power of the company’s not-so-new-
anymore Nike Customer Experience (NCX) platform. The company’s currency-neutral sales were up
10%, after growing 9% in the quarter before that. And a handful of initiatives that NKE has been
working on for a while are just now starting to reach critical mass.

Perhaps Citigroup has a point about Nike stock being a top idea for the coming year, even if Citi ‘s
analysts overstated the bullish case on NKE stock. If it seems like Nike has brought more and better
shoe styles to the market this year than it has in the past, it’s not your imagination. NKE is also
getting its merchandise onto — and off of — store shelves at a faster clip. Moreover, new
technologies have made it easier to get merchandise into more customers’ hands.

While the strategy overhauls impacted (for the better) customers’ experience in Nike’s own stores,
its third-party retailers are being asked to embrace the company’s new M.O. as well. Those retailers
who can’t get on board with the new Nike mindset may soon find themselves without the Nike
inventory they’d like to have.

Nike’s changes have been bold, but they have been somewhat necessary. The convergence of the
athleisure frenzy and another manic wave of celebrity-endorsed sneakers both peaked not too long
ago, and Nike found out that its rivals like Under Armour (NYSE:UAA, NYSE:UA) and Adidas
(OTCMKTS:ADDYY) had become more of a threat while the company wasn’t paying enough
attention.

Nike’s initiatives, however, have only recently become tangible for owners of Nike stock. One of
Nike’s innovations is the use of 3D printing to make the upper portions of running/performance
shoes. The printers weave filaments into the proper shape, but more than that, the weaving
pattern itself has been tweaked in a way that enhances the footwear’s performance.

The new and improved NKE is more than just about design and fabrication, however. Indeed, its
most significant shifts may have been the launch of customer-centric technologies at its own stores.
Store employees can now check their shops’ shoe inventories using handheld devices, enabling them
to identify which styles and sizes are available in a matter of seconds without ever leaving the
customer’s side. As for non-Nike stores that can’t keep up with Nike’s raised expectations of how its
products should be positioned and sold, they’re likely to become less prioritized.

Perhaps more importantly for investors who may be considering buying Nike stock, analysts are
taking notice. On Dec. 4, Citi called Nike stock its best investment idea for 2019, and just a few days
earlier JP Morgan upped its price target on NKE stock from $81 to $85.

Enumerate the factors which contributed for the sales growth, competitive success and
turnaround of Nike (NKE). Analyse the linkages between Operations and other functions (viz.,
Marketing, Sales, Finance, etc.) that helped athletic apparel giant to improve its business and the
outlook of Nike (NKE) stock?

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy