Nike’s business, like the athletes who best represent the brand \u2013 LeBron James, Rob Gronkowski, Neymar, Serena Williams \u2013 is outperforming the competition.\u00a0 In 2015, the domination extended outside of sporting apparel for the 50+ year-old company and into a broader context as Nike spent most of the year leading the Dow while booking $30 million in revenue (1) and CEO Mark Parker was named Fortune\u2019s Business Person of the Year (2). \u00a0With revenue targets of $50 million by 2020 (2) the future looks bright.\u00a0 How does an established company maintain such momentum?\u00a0 First, by focusing on the mission established by its founders, Phil Knight and Bill Bowerman: bring inspiration and innovation to every athlete* in the world (*if you have a body, you\u2019re an athlete \u2013 attributed to Bowerman, Knight\u2019s University of Oregon Track & Field Coach) (3).\u00a0 Then, they took this mission and aligned it to a business model and an operating model, together called Category Offense.\u00a0 Category Offense, announced in 2010 (4) realigns business units around consumers (organized by use case) allowing a large global brand to communicate with its consumers and to provide innovative products to meet their needs.<\/p>\n
Nike is the leading sports apparel provider in the world and reaches its consumers directly (Nike.com or Niketown stores) and through retail partners (e.g. Footlocker, Dick\u2019s Sporting Goods).\u00a0 Nike incorporates their iconic partners in sports around the world, including the National Football League, Team Brazil in global football, and soon the National Basketball Association, to reach consumers world-wide.\u00a0 Business units are focused on specific consumer segments \u2013 e.g. running, basketball, football \u2013 and matrixed through geographies \u2013 e.g. North America, Greater China, Emerging Markets \u2013 in order to best communicate with the consumer and establish consumer demand for innovative athletic products. (4) \u00a0Through this model, Nike is finding significant growth opportunities by focusing on opportunities across verticals as new trends emerge. \u00a0For example, as\u00a0online shopping has emerged and legitimized, Nike has deftly shifted their growth towards the higher margin direct-to-consumer channel.\u00a0 As boutique, experiential brands have expanded the women\u2019s athletic apparel market, Nike has adapted their in-store experience and products, revamping stores and introducing community oriented products like the N+ Training Club. \u00a0In the last 2 years, Nike has completely stripped down their retail outlet and\u00a0applied its product design principles\u00a0to create the experience that lifestyle consumers have come to expect.<\/p>\n