HomeResearch & Knowledgeback to HomeMarketingback to Research & KnowledgeHas Nike lost its stride?back to Marketing

Case Study

Has Nike lost its stride?

20 pages

June 2025

Reference: IMD-7-2598

Set in 2024, the case describes the trajectory of Nike’s success and how it had recently lost its way. The company was experiencing its worst slump in more than 10 years. Since 2020, CEO Donahoe oversaw a significant shift away from wholesale, with a focus on direct channels and a suite of apps. However, direct-to-consumer (DTC) sales failed to make up for the losses from previous wholesale partners. At the same time, competition from a new breed of smaller players increased. Critics claimed that the sportswear giant’s product innovations had lagged, allowing nimble competitors to chisel away at its market share. Sales were flat or down in all geographies. In response, Donahoe announced a three-year, $2 billion cost cutting plan that involved laying off 2% of workers, which in turn created a sense of crisis at Nike. Investors also suffered as the stock performed worse than the broader market in the last three years. To make matters worse, a class action suit was filed against Donahoe and CFO Matthew Friend for misleading the market about the company’s underperformance. How could Nike’s top management team execute a strategic turnaround by building upon the company’s core strengths of brand equity, product innovation and sports marketing? They had to reevaluate past strategies, rethink their assumptions and chart a comeback to restore the company to its former growth trajectory and market dominance.

Learning Objective

Understand how an iconic brand can stumble when it strays from its core strengths.
Explore what might be the dangers of pursuing digital dominance over all else.
Understand what is strategic segmentation and the importance of physical and mental availability in a high-visibility product category.
Learn how data traps can blindside and bias strategic decision making.

Keywords

Marketing, Digital, Strategy, Decision Making, Channel Design, Direct to Consumer, Customer Segmentation, Turnaround, Data Analysis

Settings

Nike, Consumer Goods, Footwear
2015-2024

Type

Published Sources

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Keep reading

Article

Unexpecting The Expected - Adapting To A Changing World

In complex situations, expertise can hold you back. Explore seven mindset shifts for unexpecting the expected and navigating uncertainty with greater agility.

Change Management Leadership Strategy

By Martin Fellenz

in I by IMD

Article

Transitioning from CFO to CEO - Top Tips

Transitioning from CFO to CEO demands bold leadership, comfort with risk and a redefined view of finance as shared by four top executives on the journey.

Growth Leadership Organizational Transformation Strategy Team

By Jean-François Manzoni

in I by IMD

Article

Strategic use of AI in healthcare and pharma drives market advantage. Here’s how

AI is fundamental to the competitive strategies of the most advanced healthcare and pharmaceutical firms. Here is how they are adopting AI to be data-driven leaders.

Innovation Strategy Technology Management

By Tomoko Yokoi and Michael R. Wade

in I by IMD

Podcast

“We were so scared of our IPO”: Leaders Unplugged with former On-CEO Marc Maurer

ON’s Marc Maurer shares how purpose, humility, and bold choices fueled the brand’s rise—from anti-metaverse to IPO—in this inspiring leadership talk.

Innovation Leadership Strategy

By Alyson Meister and Marc Maurer

in I by IMD

Case Study

Absa's Cybersecurity Academy: Combining digital transformation with doing good

Diversity and Equity and Inclusion Cybersecurity Digital

By Öykü Işık, Valerie Keller-Birrer, Poornima Urs, Barbara Vettorel and Amaru Amiya

Article

Why Mark Zuckerberg and Meta can’t build the future

Last week, a notification flashed. “Add your email address for extra security,” my phone chirped. It was from WhatsApp. I stared at the screen, a single question forming in my mind: Security? Or surveillance? I tapped “No.” The feeling wasn’t ange...

Strategy Leadership

By Howard H. Yu

in The Star

1 July 2025

Article

Only connect: How to keep disparate workforce elements happy and motivated

Today’s workforce often includes a mix of permanent employees, freelancers, and outside contractors – but even organizations with mostly external workforces or highly autonomous workforces need proximity to succeed over the long term. Here are fou...