Nike Case Study Summary: How a Retail Giant Lost Its Edge in 3 Key Areas

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Nike’s stock has been in the toilet since we wrote about it last year. Take a look at the chart below — it’s been a slow-motion unraveling. So this week, we put together a Nike Case Study Summary to break down exactly how one of the most iconic brands in the world lost its footing. We wrote about this last year in-depth when we were breaking down all sorts of business stories.

In our view, they’ve failed to execute on three fundamental pillars:

• Marketing

• Product design

• Distribution

Let’s break them down.

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Nike’s Marketing Missteps: Losing the Cool Factor

Nike is losing what made it cool. The enormous growth in recent years means Nike is now almost too big to fail — and it shows. The brand now markets itself like a traditional corporate giant: focused on ubiquity, broad-spectrum messaging, and playing it safe.

That approach has stripped away the edge Nike once had. It’s not that Nike lacks personality — it just no longer outshines its competitors the way it used to. The storytelling feels diluted. The emotional punch? Muted.

Product Failures and the MLB All-Star Game Debacle

Nike doesn’t just have a marketing problem — they also have a product problem.

They’re just coming off a huge PR crisis tied to the 2024 MLB All-Star Game uniforms, which were widely panned. While Fanatics manufactures the uniforms, Nike is responsible for the design — and it’s Nike’s logo that takes the heat when things go sideways.

This isn’t an isolated incident either. Product curation has become another pain point, especially with the endless re-releases of limited-edition sneakers and the oversaturation of Jordan brand drops. It’s making the brand feel stale. Sneaker drops don’t hit the same, and SNKRS app downloads have plummeted over the past four years.

A Distribution Strategy That Backfired Post-Covid

Then there’s distribution — or more accurately, the lack of a smart post-pandemic strategy.

Nike CEO John Donahoe was brought in to boost direct-to-consumer (D2C) sales, which worked during the pandemic. But once the world reopened, Nike cut ties with key retail partners like Foot Locker and department stores — a huge mistake.

People returned to stores expecting to find Nike gear and didn’t. That absence hurt not just D2C sales, but overall salesacross the board. Nike misread the moment and underestimated how much shoppers wanted the in-person experience back.

Can Nike Recover? What Comes Next

Nike had the greatest opportunity in retail history coming out of the pandemic — and it squandered it by misjudging how people shop, what they want, and where they want to find it.

From messaging to design to distribution, the company’s core competencies have eroded. The brand isn’t dead, but it’s definitely in a holding pattern. With competition heating up from newer, more agile brands (and even former underdogs like New Balance), the question becomes: What will it take for Nike to win again?

FAQ: What Went Wrong at Nike in 2024?

Q: What are the main reasons for Nike’s recent stock decline?
A: Poor marketing execution, product design missteps (including MLB uniforms), and a flawed post-Covid retail distribution strategy have all contributed to Nike’s decline.