Product Management

Module Work

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Company Summary
Nike, Inc. is an American multinational corporation that is engaged in the design, development,
manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services.

It is the world's largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with
revenue in excess of US$37.4 billion in its fiscal year 2020 (ending May 31, 2020). As of 2020, it employed
76,700 people worldwide. In 2020 the brand alone was valued in excess of $32 billion, making it the most
valuable brand among sports businesses.

Nike’s Business Segments

Nike breaks its financial metrics into three categories: NIKE Brand; Converse; and Corporate. The NIKE Brand
also is further broken down into geographical segments: North America; Europe, Middle East & Africa; Greater
China; Asia Pacific & Latin America; and Global Brand Divisions. The NIKE Brand segment comprises 96% of
the company's total revenue.

Nike also breaks out revenue, but not profits, for its major product lines and distribution channels. The share of
revenue generated by each of Nike's product lines, for example, is: Footwear (64%); Apparel (32%); Equipment
(3%); and Other. A negligible amount is attributable to Other, which includes revenue from licensing businesses
of the Global Brand Divisions and Converse segments, and to foreign currency hedge gains and losses
accounted for in the Corporate segment.

Nike reports both revenue and earnings before interest and taxes (EBIT), its primary measure for evaluating
operating performance, for its geographic business segments. The data reported in the pie charts above and in
the share percentage calculations in the breakdowns below exclude segments with negative revenue or negative
profits.
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Nike’s Product Information
Nike is a leading manufacturer of sports-related products, including shoes, apparel and equipment. Many people
from all over the world are familiar with the brand, as it has a global presence that earns more than $18 billion in
revenue. The Nike logo has become a popular global icon. Nike also partners with sports stars to further promote
the brand.

Footwear
Shoes are Nike's flagship product. The company manufactures different shoes for a wide variety of sports, such as
basketball, football, golf, soccer, baseball, snowboarding, hockey, tennis and volleyball. It also makes consumer
fashion shoes such as Mary Janes and flip-flops. Nike shoes are designed for efficient sports performance as well
as for aesthetics.

Apparel
Nike also produces apparel for sports activities, as well as other activities including dance and yoga. It features
different collections for its apparel, including Livestrong, Nike Pro, Nike Free and SPARQ. In addition, Nike makes
casual clothes for men and women. Many consumers wear Nike clothes not just for sports activities but also for
brand status.

Equipment
Aside from shoes, Nike also sells sports equipment, such as baseball bats, balls, swimming caps, rackets and golf
clubs. Nike also sells gloves and yoga mats, as well as agility cones. Other sports equipment it sells includes
weights and sports guards such as knee pads, wrap sleeves and shin guards.

Accessories
The company is also well-known for accessories such as watches, bags and socks, as well as consumer
technology such as the Nike+ supplement for the iPod. Nike also sells rubber bracelets, training DVDs and athletic
belts. Many of the bags it sells feature a particular team such as Manchester United or a university such as UCLA.
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Nike’s Financials
Nike posted a net income of $1.3 billion on $11.2 billion of revenue during Q2 of its 2021 fiscal year (FY), the
three-month period that ended Nov. 30, 2020. Net income rose 12.2% in Q2 FY 2021 compared to the same
quarter a year ago. Revenue grew 8.9% compared to the year-ago quarter.

Nike said that its revenue performance was impacted by strength in digital growth, which was offset by lower
revenue in its wholesale business and its company-owned stores.

Nike announced in late July a series of senior leadership changes as part of its Consumer Direct Acceleration
(CDA) program. The CDA program, first announced in June, aims to accelerate its digital transformation in
order to generate long-term growth and profitability.

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Nike’s Consumer Direct Acceleration (CDA) Plan
The CDA, announced in June 2020, is a new digitally empowered phase of NIKE’s strategy to
unlock long-term growth and profitability.

“We are announcing changes today to transform NIKE faster, accelerate against our biggest growth opportunities
and extend our leadership position,” said John Donahoe, President & CEO, NIKE, Inc. “Now is the right time to
build on NIKE’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase
of our growth.”

Student Research Projects

You’re NIKE – as You might have just found out by reading the previous lines - one, if not the most popular and
well-known sport brand in the world.

With the introduction of the CDA plan in 2020, the Nike Management Level just released the launch of the next
stage in the CDA program which contains an experimental approach to new and digital markets to expand the
influence of Nike in all domains of sports and ensure Nike’s leadership in the digital world of tomorrow.

The concrete idea of this announcement is to explore new markets of digital technology which can be used in the
sports sector but also beyond.

As two technological concepts of tomorrow Nike’s Management Level chose: “Augmented Reality” and “Multi-
sensorial wearables”.

Your task as the new Product Managers: “Develop a plan how to make these technologies a success story for
Nike”!
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https://www.businessofapps.com/data/apple-statistics/

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https://www.businessofapps.com/data/apple-statistics/

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https://www.businessofapps.com/data/apple-statistics/

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https://www.businessofapps.com/data/apple-statistics/

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 Management: “It’s time for an Apple Social Network”

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 Be Creative!
Main Tasks:
• Which solution should be developed based on the mentioned technologies?
• Requirement Engineering? What are your product requirements?
• Create a solution requirement specification document (“Lastenheft”)
• Try to convince Nike Management: Develop a business plan for your anticipated solution
• Develop a productization roadmap and fictively discuss the productization process in the RnD
context
• Create product features (MMP and TP) and rank them in the feature backlog of the solution

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 Requirements

• 3-5 students per group

• Written report has to be submitted by each group at 04.07.2022
• Report: 20-30 pages (“It’s not about quantity it’s about quality!”)
• Each student has to give an oral presentation (~7min)

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