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EBS BUSINESS SCHOOL

EBS UNIVERSITÄT FÜR WIRTSCHAFT UND RECHT

ESSAY
Strategic Foresight
Spring Term 2023
Master of Science

Strategic Foresight Essay

Name: Abhimanyu Singh Gehlot

Matriculation
number: 21037935
Submitted to: Dipl.-Kffr. Martina Schwarz-Geschka
Submission Date: 15th March, 2023
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Table of Content

1 Company and Product........................................................................3

2 Trends..................................................................................................4

3 Description of Trends.........................................................................5
3.1 Collaborations.................................................................................................5
3.2 Customization.................................................................................................5
3.2 Sustainable fashion.........................................................................................6
3.2 Globalization..................................................................................................6
3.2 Athleisure.......................................................................................................7

4 Trendcanvas........................................................................................7

5 Opportunities and Risks.....................................................................8

5 Reflection.............................................................................................8

6 References............................................................................................9
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1 Company and the Product

For this work assignment essay the company that I’ve chose is Nike and the product of
focus will be it’s shoes with a specific focus on the Jordan sub-brand. In this essay we
will go through the major trends that have been instrumental in the changes and the
development of the shoes within this brand. We will be covering 8 major trends and
then finally take a deeper dive on the five highly ranked trends. The aforementioned
rankings will be based on a ranking matrix which will act as a guideline and the point of
refrenece to our essay.

The American company Nike, Inc. manufactures the Air Jordan brand of basketball
shoes and sportswear. On April 1, 1985, the first Air Jordan sneaker was made for
basketball legend and Hall of Famer Michael Jordan while he was playing for the
Chicago Bulls in late 1984. Tinker Hatfield, Bruce Kilgore, and Peter Moore created the
sneakers for Nike. When it comes to the Air Jordan brand, it has a total of 37 different
shoes variants that are the product offerings and they are named very simplistically as
Air Jordan I, Air Jordan II, Air Jordan III and so on till Air Jordan XXXVII. One key
and interesting fact that can be observed from all of the names is the use of roman
numerical to denote the number of the shoes. There are a lot of other limited edition
variants of the shoes from each specific product offerings but for the sake of this essay
we will only stick to the major and popular variants. The brand has an approximate of
10,000 employees and the projected sales for the year 2023 is expected to reach around
$51.96 Billion. The key competitors are Adidas Originals, Converse, New Balance and
Vans.

The following section will contain the list of 8 trends that I could identify and how they
compare to each other using a trend comparison matrix.
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1 Trends : Impacting the development of Jordan Shoes

The eight trends can be listed as follows :

 Athleisure
 Nostalgia
 Streetwear
 Sustainable Fashion
 Collaborations
 Digitalization
 Globalization
 Customization

Rank
Stree

Digit

Glob

omiz
algia
eisur
Nost

twea

aliza

aliaz
Cust

Sum
Athl

abor
Sust

Coll
aina

Athleisure 1 1 0 1 1 0 0 4 3
Nostalgia 0 1 0 1 0 0 1 3 6
Streetwear 1 1 0 0 1 0 0 3 6
Sustainable 0 1 0 1 1 1 0 4 3
Fashion
Collaborations 1 0 1 1 1 1 1 6 1
Digitalization 0 0 0 1 1 0 0 2 8
Globaliazation 0 1 1 1 0 1 0 4 3
Customization 0 1 1 1 0 1 1 5 2
Table 1 : Pairwise Comparison of the eight listed trends
As per the ranking that can be observed from above, the top 5 relevant trends are as
follows :-
 Collaborations
 Customization
 Sustainable Fashion
 Globalization
 Athleisure
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2 Description of the Trends

3.1 Collaboarations
Collaborations with artists, designers, and famous people have gained popularity in the
fashion sector. In order to provide limited edition items that appeal to a larger audience,
Jordan sneakers have been created in conjunction with numerous artists and designers.
Over the years, Nike Air Jordan has worked with a variety of famous people, including
music giants Drake and Travis Scott as well as basketball greats Michael Jordan and
LeBron James. These endorsers have promoted the company and drawn in new clients
who are followers of the celebs. Nike Air Jordan has also worked with creatives like
Virgil Abloh, whose Off-White x Air Jordan 1 sneaker, a limited edition, sold out
almost immediately after going on sale. These designer partnerships have aided in
establishing the brand as a cutting-edge and appealing product. In order to provide
limited edition shoe releases that are highly sought after by sneakerheads, Nike Air
Jordan has teamed up with other sneaker brands and shops including Supreme and Foot
Locker.Also, Nike Air Jordan has worked with a number of cultural organizations,
including the Paris Quai 54 basketball competition and the Museum of Modern Art.

3.2 Customization
Customization has been used by Nike Air Jordan in a number of ways to reinvent its
goods and provide customers individualized choices. The business has been able to set
itself apart from rivals and develop a highly desired product offering by providing a
variety of personalization possibilities, limited edition releases, and working with artists
and designers. Customers may personalize their own pairs of Air Jordan shoes using
Nike's online customization tool, NIKEiD. Consumers may construct a customized pair
of Air Jordans that is exclusive to their taste and preferences by selecting from a variety
of materials, color, and design options. This opportunity for personalization has assisted
in setting the business apart from rivals and giving customers a unique product. Also,
Nike Air Jordan has developed limited edition variations of its shoes that are only
offered for a brief time. These new releases frequently include distinctive design
features and hues, making them highly sought-after by sneakerheads and collectors.
Using this method of personalization, the product is given a feeling of exclusivity and
rarity, which might raise consumer perceptions of its worth. To produce distinctive and
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highly personalized versions of its sneakers, Nike Air Jordan has worked with a variety
of artists and designers. For instance, the company collaborated with the graffiti artist
Futura to make a special edition Air Jordan 1 that showcases his distinctive aesthetic, as
well as with the fashion designer Virgil Abloh to produce the highly sought-after Off-
White x Air Jordan 1. These partnerships enable the development of items that are
extremely individualized and distinctive from the rest of the line.

3.3 Sustainable Fashion

Nike Air Jordan has already been utilizing eco-friendly materials in its goods, such as
organic cotton and recycled polyester. For instance, the company's Flyleather
technology creates a strong, light-weight material that eliminates waste and boosts the
brand's environmental credentials by using at minimum 50% recycled leather fibers.
Closed loop manufacturing processes, which aim to reduce waste and recycle resources,
have also been introduced by Nike Air Jordan. This entails reusing discarded resources
to make new items as well as employing recycled materials to make them. By 2030,
Nike Air Jordan wants to cut its carbon dioxide emissions by 30%, which has prompted
the company to concentrate on lessening the environmental effect of its goods. This
entails making use of sources of clean energy and enhancing the productivity of its
production methods.

Nike Air Jordan is additionally investigating circular business strategies, which seek to
build goods that are built to last a long time and can be reused or used for new purposes
once their useful lives are through. Included in this are programs like the company's
Reuse-A-Shoe project, which gathers worn shoes and reuses them to make new items.

3.4 Globalization
Nike Air Jordan is now able to reach new markets all over the world thanks to
globalization. The products of the company are currently offered in a variety of nations,
which has aided in growing the consumer base and revenue of the company. Also, Nike
Air Jordan has modified its product lines to fit local market, taking into account
elements like climate, style, and cultural preferences. Examples include the "Tokyo"
and "Paris" editions of the brand's limited-edition Air Jordans, which draw inspiration
from regional sites and cultures. In order to produce goods that are appealing to regional
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markets, Nike Air Jordan has worked with a variety of international partners, including
merchants, designers, and artists. These partnerships aid in the development of goods
that are distinctive, pertinent to local consumers, and consistent with the aesthetic and
character of the brand as a whole. Globalization has hastened Nike Air Jordan's digital
development, allowing the company to contact customers globally via social media and
e-commerce. Customers may access the company's online shop and social media
platforms regardless of where they are in the globe, and they offer a platform for
consumer engagement and brand recognition.

3.5 Athleisure
Nike Air Jordan's product designs have been impacted by the focus on convenience and
practicality in fashion that has resulted from the desire for athleisure. The company has
created new substances and techniques that offer improved support, breathability,
cushioning, and support, making its goods more useful and pleasant for everyday wear.
Athleisure, which combines athletic and casual apparel, has increased demand for
fashionable, functional clothing and shoes that can be used both for exercise and daily
activities. By adding modern patterns and colours that cater to the athleisure industry,
Nike Jordan has reacted to this demand by making shoes that are both stylish and
practical.

3 Trendcanvas

Trend : Collaborations

Description : Drivers of change Microtrends

In recent years, the shoe  Consumer demand Social Media
business has seen an increase
 Increased
in the popularity of
partnership. Working competition
together, companies and Challenges
 Creative innovation
designers may develop  Finding the
distinctive and cutting-edge  Sustainability
goods that draw customers in right partner
and boost sales.  Maintaining
Counterforces of change authenticity
 Saturation  Balancing
Likelihood of occurrence
 Brand Dilution exclusivity and
 Creative stagnation accessibility
 Increased cost
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4 Opportunities and Risks

Although all these trends have boosted Nike Air Jordan’s market share and redefined
the way the products are being designed, there are still a lot of opporutunities and risks
that needs to be assesed properly. As far as the opportunities are concerned , they are
made to be both practical and attractive, Jordan sneakers are well-positioned to benefit
from the rise of athleisure. Jordan sneaker collaborations with other companies or
designers may generate excitement and buzz, which can boost sales and increase brand
recognition.Jordan Shoes can attract new clients and promote growth by diversifying
into international markets. The business may be able to stand out in a competitive
market if it can adapt its products to various cultural tastes.

However, all of the above opportunities come with their own set of involved risks. As
athleisure becomes less popular, Jordan sneakers may become less desirable to
customers who value fashion above use. Streetwear sales may be erratic, with fads and
preferences changing fast. If Jordan fails to keep up with new trends, the brand's
sneakers may become less popular. A brand's capacity to develop and remain relevant to
newer generations of consumers may be hampered if it places an excessive amount of
emphasis on nostalgia. It might be dangerous to enter new markets since it can be
challenging to comprehend cultural variances and market dynamics. Moreover, a
brand's attractiveness and quality control may be compromised by rapid expansion.

5 Reflection

As you can probably understand from this essay that I have a passion for sneakers and
espically the Jordan brand, I always thought that I knew eveything about the brand and
how it works when it comes to desigining the shoes . However, when I look back at it
now I only had a very baseline knowledge of what goes into a sneaker, from the
conceptulization , to desiging it , manufaturing it and finally giving it to the customers
and then listening to their demans . All of these steps that are involved are heavily
influenced by the trends that are going through the industry and thus they help shape the
way the entire firm operates. After doing the research that was required for this essay,
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one thing is certain that Nike had the strategic foresight to be at the level they are
curetnly as the dominanat players in the sneaker indusrty and it all started from having
the forsight of developing a brand of sneakers based around a certain player named
Michael Jordan. The easisest thing here was the motivation to write an essay that
showcases my passion for the brand and the teachings of the class. I’d say I didnt find
anything which was difficult as I had picked up a brand that I’m passionate about and it
helped me get over the parts where I was stuck, for example finding the connection
between Globalization and how it affects the design of a sneaker since this involves
multiple cultures and society along with the changing digital infrastrucutre.

References

Warren, B. (2018, November 17). Change the Game: How the Air Jordan I

Transformed Sneaker Culture. SLAM.

https://www.slamonline.com/kicks/change-game-air-jordan-transformed-

sneaker-culture/

Sustainable and Eco-Friendly Shoes for Every Occasion. (n.d.). Nike.com.

https://www.nike.com/a/sustainable-eco-friendly-shoes

Business Insider India. (2019, May 9). How Nike’s Jordan Brand used celebrity

collaborations to overcome a dip in the rankings and keep its reputatio.

Business Insider. https://www.businessinsider.in/miscellaneous/how-nikes-

jordan-brand-used-celebrity-collaborations-to-overcome-a-dip-in-the-rankings-

and-keep-its-reputation-as-the-most-iconic-sneaker-brand-of-all-time-from-the-

moment-it-signed-jordan-to-today-heres-everything-you-need-to-know-/

slidelist/69256194.cms
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Getting personal: What digitization and customization mean for Nike’s supply chain -

Technology and Operations Management. (2017, November 15). Technology

and Operations Management.

https://d3.harvard.edu/platform-rctom/submission/getting-personal-what-

digitization-and-customization-mean-for-nikes-supply-chain/

Globalization vs. Isolationism: Finding Nike’s New Competitive Advantage? -

Technology and Operations Management. (2017, November 16). Technology

and Operations Management.

https://d3.harvard.edu/platform-rctom/submission/globalization-vs-isolationism-

finding-nikes-new-competitive-advantage/

Statista. (n.d.). Footwear - Jordan | Statista Market Forecast.

https://www.statista.com/outlook/dmo/ecommerce/fashion/footwear/jordan

Kazi, T. B. (2011, December 1). Superbrands, Globalization, and Neoliberalism:

Exploring Causes and Consequences of the "Nike" Superbrand. Inquiries

Journal. http://www.inquiriesjournal.com/articles/604/superbrands-

globalization-and-neoliberalism-exploring-causes-and-consequences-of-the-

nike-superbrand

Wikipedia contributors. (2023, March 15). Air Jordan. Wikipedia.

https://en.wikipedia.org/wiki/Air_Jordan