BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U
The case tells the story of the transformation of the corporate learning function at Nike Inc. and the creation and branding of the Nike U. It provides an account of the transformation plan that was developed by the newly appointed CLO Andrew Kilshaw and tracks the implementation process with its challenges and successes. It also outlines the key components of a learning brand of a multinational corporation. Learning objectives: Identify the key priorities of a new CLO. Outline the key components of a corporate learning brand. Identify ways in which learning creates value for an organization.
Swot Analysis of "BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U" written by Shlomo Ben-Hur, Robert Crawford includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Learning Nike facing as an external strategic factors. Some of the topics covered in BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U case study are - Strategic Management Strategies, and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U casestudy better are - – challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing commodity prices, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing energy prices,
increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, etc
Introduction to SWOT Analysis of BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Learning Nike, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Learning Nike operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U can be done for the following purposes –
1. Strategic planning using facts provided in BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U case study
2. Improving business portfolio management of Learning Nike
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Learning Nike
Strengths BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Learning Nike in BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U Harvard Business Review case study are -
Diverse revenue streams
– Learning Nike is present in almost all the verticals within the industry. This has provided firm in BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
High brand equity
– Learning Nike has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Learning Nike to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Learning Nike is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Learning Nike is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Leadership & Managing People field
– Learning Nike is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Learning Nike in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Learning Nike in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Learning Nike in the sector have low bargaining power. BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Learning Nike to manage not only supply disruptions but also source products at highly competitive prices.
High switching costs
– The high switching costs that Learning Nike has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Learning Nike digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Learning Nike has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Training and development
– Learning Nike has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Cross disciplinary teams
– Horizontal connected teams at the Learning Nike are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Effective Research and Development (R&D)
– Learning Nike has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Learning Nike is one of the leading recruiters in the industry. Managers in the BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U are -
High cash cycle compare to competitors
Learning Nike has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– After analyzing the HBR case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Capital Spending Reduction
– Even during the low interest decade, Learning Nike has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Learning Nike has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Need for greater diversity
– Learning Nike has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow decision making process
– As mentioned earlier in the report, Learning Nike has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Learning Nike even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Lack of clear differentiation of Learning Nike products
– To increase the profitability and margins on the products, Learning Nike needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Learning Nike has relatively successful track record of launching new products.
Products dominated business model
– Even though Learning Nike has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Learning Nike has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U, it seems that the employees of Learning Nike don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U are -
Developing new processes and practices
– Learning Nike can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Learning Nike can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Learning Nike to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Learning Nike can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Learning Nike to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Learning Nike to hire the very best people irrespective of their geographical location.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Learning Nike is facing challenges because of the dominance of functional experts in the organization. BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Learning Nike can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Learning Nike can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– Learning Nike can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Learning Nike has opened avenues for new revenue streams for the organization in the industry. This can help Learning Nike to build a more holistic ecosystem as suggested in the BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U case study. Learning Nike can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Learning Nike can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Learning Nike can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Learning Nike can use these opportunities to build new business models that can help the communities that Learning Nike operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Threats BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U are -
Consumer confidence and its impact on Learning Nike demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Learning Nike.
Increasing wage structure of Learning Nike
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Learning Nike.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U, Learning Nike may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Shortening product life cycle
– it is one of the major threat that Learning Nike is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Learning Nike will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Stagnating economy with rate increase
– Learning Nike can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Learning Nike can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Learning Nike has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Learning Nike needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Learning Nike business can come under increasing regulations regarding data privacy, data security, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Learning Nike needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Learning Nike with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of BUILDING THE CORPORATE LEARNING BRAND: THE STORY OF NIKE U is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Learning Nike needs to make to build a sustainable competitive advantage.