Megan Oakley
Unit 1 Assignment 3
Launch date- 04/03/22
Due date- 30/02/22
The role and contribution of innovation and enterprise to business success
In these notes I will be covering how innovation and enterprise has a contribution to the
international shoe brand nike. Nike, Inc. is an American multinational corporation that
designs, develops, manufactures, and markets footwear, clothes, equipment, accessories,
and services around the world.
Innovation
One of the ways Nike has kept their competitive edge is through incorporating new
technologies into their ecosystem on a regular basis, as well as generating new ones. Nike
patents have nearly doubled since 2009, outpacing competitors Adidas and Under Armour,
as well as Ford, Lockheed Martin, and Pfizer. Nike is a specialist in adapting current
technology and collaborating with technical behemoths, in addition to developing patent-
worthy breakthroughs. Nike recently formed a partnership with Hewlett Packard to see if HP
3D printers could produce the same high-quality footwear that Nike is famous for. (2).Mark
Parker, the CEO of Nike, is well aware of his role in supporting innovation. It was via
unrestricted testing that Nike was capable of moving beyond the swoosh and shoes in early
2012, launching the FuelBand, an innovative electrical device that detects movements Nike
has also entirely overhauled their shoe-making process. Rather than designing a new shoe,
the business developed a new method of thinking about athletic shoe manufacturing. The
Flyknit Racer, a sneaker that is "more environmentally friendly and might cut long-term
production costs," is the result of this technique breakthrough.
Nike is primarily a consumer goods corporation, and one of their strengths is guaranteeing
that their customers benefit from their innovations. The constant emphasis Nike places on
the customer experience demonstrates their commitment to innovation for customers.
According to a patent submitted by Nike in 2016 for an augmented reality design system,
users may be able to design their product of choice in real time through a virtual proxy in the
future, which might be a complement to the NIKEiD custom shoe creation site. Nike is also
collaborating with SmartPixels to investigate the usage of augmented reality in their physical
sites. Customers may visually adjust shoes to their preference using the French-designed
gadget, a hologram, this can benefit Nike in many ways. This allows customers to design a
shoe of their own, something that is not yet seen amongst any other shoe brand, this
technology can give nike a competitive advantage, this product would attract more
customers as anything can be designed to their own preference.
Nike's financial productivity is likely to increase as a result of its investments in making the
company more efficient. New technology is being used by the corporation to lower
production costs and the time it requires for products to move through the supply chain.
For example Nike has been collaborating with Flex Ltd, since 2015 to increase efficiency in
the manufacturing process. This might include materials laser-cutting and automated glueing
being rolled out across Nike's manufacturing facilities. The cost reductions from increased
robotics utilisation could be significant. If automation were employed to make 30% of the
company's North American footwear, it is predicted that expenses would be cut by $400
, Megan Oakley
Unit 1 Assignment 3
Launch date- 04/03/22
Due date- 30/02/22
million. Which means that more money can be spent on the launch of new products or the
movement into a different market.(1) Nike unveiled a new strategy called "Consumer Direct
Offence" in 2019, which takes a page from direct-to-consumer companies by speeding up
product creation and speed-to-market, as well as enhancing direct consumer involvement.
Nike's strategy is moving more manufacturing to the US, where it will take less time to reach
customers. (4)
As well as this, Nike plans to run on 100% renewable energy by 2025, in order to achieve its
zero waste goal. Nike is developing alternative ways to achieve this, such as deploying an
experimental daylight delivery system to bring natural light into their facilities, producing
power with solar panels and wind turbines, and integrating thermal energy storage devices
to store unneeded heat for future use. Currently, over 71 percent of the materials used in
Nike footwear and apparel are recycled, which is a remarkable achievement given that
Nike's income has grown by more than 64 percent since 2008. Implementing
environmentally friendly methods that help the company's bottom line, due to the ongoing
trend ‘save the planet’ this attracts more customers and stakeholders as everyone wants to
be associated with companies that are helping the planet we live on
Nike was one of the first companies to investigate
the environmental impact of each dye and thread
used in their goods. If the company's chemists
discovered that a material in a product was
damaging to the environment, they would simply
remove it. Nike Flyknit and Nike Air are two
recent ads that showcase the results of these
revolutionary methods. In its seven years of
existence, Nike Flyknit has avoided over 10
million pounds of garbage from landfills by using
60 percent less waste than typical footwear
manufacturing procedures. In addition, the
company's shoe soles have featured at least 50%
recycled production waste since 2008.
Nike has, of course, been under increased competitive pressure in previous months,
particularly in North America. Although its Nikes sales performance in the region
strengthened in the final quarter of the year, clothing revenue climbed by only 1% for the
2018 fiscal year. One explanation for this is the entry of a number of apparel manufacturers
into the sportswear market, with firms like Uniqlo attempting to secure a presence in what
will be a rapidly developing industry. Nike has responded by focusing on fresh product
development. The company's latest current footwear and apparel releases accounted for
almost 80% of its revenue growth in the most recent quarter. It has also made significant
marketing investments, with brand creation costs increasing by 25% in the fourth quarter of
2018. Product innovations and more expenditure on them could give the company a
competitive advantage over competitors, particularly because few competitors can equal its
fourth-quarter marketing budget of $983 million. (3)
Unit 1 Assignment 3
Launch date- 04/03/22
Due date- 30/02/22
The role and contribution of innovation and enterprise to business success
In these notes I will be covering how innovation and enterprise has a contribution to the
international shoe brand nike. Nike, Inc. is an American multinational corporation that
designs, develops, manufactures, and markets footwear, clothes, equipment, accessories,
and services around the world.
Innovation
One of the ways Nike has kept their competitive edge is through incorporating new
technologies into their ecosystem on a regular basis, as well as generating new ones. Nike
patents have nearly doubled since 2009, outpacing competitors Adidas and Under Armour,
as well as Ford, Lockheed Martin, and Pfizer. Nike is a specialist in adapting current
technology and collaborating with technical behemoths, in addition to developing patent-
worthy breakthroughs. Nike recently formed a partnership with Hewlett Packard to see if HP
3D printers could produce the same high-quality footwear that Nike is famous for. (2).Mark
Parker, the CEO of Nike, is well aware of his role in supporting innovation. It was via
unrestricted testing that Nike was capable of moving beyond the swoosh and shoes in early
2012, launching the FuelBand, an innovative electrical device that detects movements Nike
has also entirely overhauled their shoe-making process. Rather than designing a new shoe,
the business developed a new method of thinking about athletic shoe manufacturing. The
Flyknit Racer, a sneaker that is "more environmentally friendly and might cut long-term
production costs," is the result of this technique breakthrough.
Nike is primarily a consumer goods corporation, and one of their strengths is guaranteeing
that their customers benefit from their innovations. The constant emphasis Nike places on
the customer experience demonstrates their commitment to innovation for customers.
According to a patent submitted by Nike in 2016 for an augmented reality design system,
users may be able to design their product of choice in real time through a virtual proxy in the
future, which might be a complement to the NIKEiD custom shoe creation site. Nike is also
collaborating with SmartPixels to investigate the usage of augmented reality in their physical
sites. Customers may visually adjust shoes to their preference using the French-designed
gadget, a hologram, this can benefit Nike in many ways. This allows customers to design a
shoe of their own, something that is not yet seen amongst any other shoe brand, this
technology can give nike a competitive advantage, this product would attract more
customers as anything can be designed to their own preference.
Nike's financial productivity is likely to increase as a result of its investments in making the
company more efficient. New technology is being used by the corporation to lower
production costs and the time it requires for products to move through the supply chain.
For example Nike has been collaborating with Flex Ltd, since 2015 to increase efficiency in
the manufacturing process. This might include materials laser-cutting and automated glueing
being rolled out across Nike's manufacturing facilities. The cost reductions from increased
robotics utilisation could be significant. If automation were employed to make 30% of the
company's North American footwear, it is predicted that expenses would be cut by $400
, Megan Oakley
Unit 1 Assignment 3
Launch date- 04/03/22
Due date- 30/02/22
million. Which means that more money can be spent on the launch of new products or the
movement into a different market.(1) Nike unveiled a new strategy called "Consumer Direct
Offence" in 2019, which takes a page from direct-to-consumer companies by speeding up
product creation and speed-to-market, as well as enhancing direct consumer involvement.
Nike's strategy is moving more manufacturing to the US, where it will take less time to reach
customers. (4)
As well as this, Nike plans to run on 100% renewable energy by 2025, in order to achieve its
zero waste goal. Nike is developing alternative ways to achieve this, such as deploying an
experimental daylight delivery system to bring natural light into their facilities, producing
power with solar panels and wind turbines, and integrating thermal energy storage devices
to store unneeded heat for future use. Currently, over 71 percent of the materials used in
Nike footwear and apparel are recycled, which is a remarkable achievement given that
Nike's income has grown by more than 64 percent since 2008. Implementing
environmentally friendly methods that help the company's bottom line, due to the ongoing
trend ‘save the planet’ this attracts more customers and stakeholders as everyone wants to
be associated with companies that are helping the planet we live on
Nike was one of the first companies to investigate
the environmental impact of each dye and thread
used in their goods. If the company's chemists
discovered that a material in a product was
damaging to the environment, they would simply
remove it. Nike Flyknit and Nike Air are two
recent ads that showcase the results of these
revolutionary methods. In its seven years of
existence, Nike Flyknit has avoided over 10
million pounds of garbage from landfills by using
60 percent less waste than typical footwear
manufacturing procedures. In addition, the
company's shoe soles have featured at least 50%
recycled production waste since 2008.
Nike has, of course, been under increased competitive pressure in previous months,
particularly in North America. Although its Nikes sales performance in the region
strengthened in the final quarter of the year, clothing revenue climbed by only 1% for the
2018 fiscal year. One explanation for this is the entry of a number of apparel manufacturers
into the sportswear market, with firms like Uniqlo attempting to secure a presence in what
will be a rapidly developing industry. Nike has responded by focusing on fresh product
development. The company's latest current footwear and apparel releases accounted for
almost 80% of its revenue growth in the most recent quarter. It has also made significant
marketing investments, with brand creation costs increasing by 25% in the fourth quarter of
2018. Product innovations and more expenditure on them could give the company a
competitive advantage over competitors, particularly because few competitors can equal its
fourth-quarter marketing budget of $983 million. (3)
