Why the Nike Business Is Flirting With Disaster

November 14, 2021

Nike

 In 2015, the Nike brand posted net sales of $8.8 billion, up 4 percent from the year before. The marketer’s biggest market is the United States, where it has a 32 percent share. In fact, Nike is the world’s most valuable brand, and its brand valuation has increased by nearly $100 billion since 2000. Despite all the success, Nike’s business is flirting with disaster.

The problem is that Nike's business model is based on the idea that one shoe fits really well in a pair of shoes and that's a good thing. But it appears the market for the most popular shoe in the US just isn't big enough to satisfy the demand of the US consumer for a shoe that "fits.


The reason is that the market for a shoe that fits has exploded in the last decade or so, and there is no reason to think that the market for the most popular shoe in the US is big enough to satisfy the demand.


Nike has been trying to develop a shoe for the US market since the early 90s, and they now have over 100 million pairs of shoes in circulation. It is hard to believe that the US consumer would be interested in buying a pair of shoes that don't fit.

The demand for Nike shoes is huge, but that's hardly a reason to think that they're doomed. The reason Nike is flirting with disaster is that they are trying to develop the shoes in a way that will make them look like they have a design defect. If they are, that is when they will fail. It's a case of "if it looks bad, it probably is.


The problem is that Nike is getting a bunch of customers that want to wear the exact same shoes for as long as their hearts can stand it. The problem is that the designers have no idea how much longer they can wait.


The problem is that Nike doesn’t know how long they can wait.


For example, the design team for the Air Force 1 shoes didn’t even bother to have a “retractable heel,” leaving them to wear the shoe like a regular shoe. They did have a “retractable-flange” design, however, so they could get a “retractable” heel.


Nike


If you want to go into business with a major sporting brand, you have to prepare yourself for the possibility that the company might be in the middle of a long-term decline. In the case of Nike, the problem is that it has been getting a steady stream of new customers who want to wear the exact same shoes over and over again. This is a big problem for a company that is famous for having a lot of new products.


The problem with the company in question is its manufacturing process.


Because new shoes come in and go out of Nike factories, the factory floor has to be constantly maintained. That is why they have to keep making the same products. The company has been on the decline for a while now, and you can tell by the way it's been bleeding customers.

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