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Nike CEO blames remote work for innovation slowdown, saying it's hard to build disruptive products on Zoom

๐ŸŒˆ Abstract

The article discusses Nike CEO John Donahoe's comments on how remote work has impacted the company's innovation and product development.

๐Ÿ™‹ Q&A

[01] Nike CEO's Perspective on Remote Work and Innovation

1. What did the Nike CEO say about the impact of remote work on the company's innovation?

  • The Nike CEO, John Donahoe, blamed remote work for the company's innovation slowdown and lack of fresh new products.
  • Donahoe stated that it is "really hard to do bold, disruptive innovation, to develop a boldly disruptive shoe on Zoom" when employees were working from home for 2.5 years during the COVID-19 pandemic.
  • He said the company's innovation pipeline is now as strong as ever, and consumers can expect to see new product drops and fresh storytelling from the brand.

2. What were the key reasons cited by the Nike CEO for the innovation slowdown?

  • The Nike CEO cited two main reasons for the innovation slowdown:
    • Footwear factories in Vietnam were forced to shut down during the COVID-19 pandemic.
    • Nike employees worked from home for 2.5 years, which made it "really hard to do bold, disruptive innovation" and develop new products.

3. How did the Nike CEO describe the company's current innovation pipeline and product plans?

  • Donahoe said Nike's innovation pipeline "is as strong as ever," and consumers can expect to start seeing new product drops each season, as well as the fresh storytelling the brand is known for.
  • He insisted that Nike is still "gaining share" and remains a dominant force in running and other sports categories.

[02] Challenges Facing Nike

1. What challenges has Nike been facing in terms of innovation and market share?

  • Nike has been criticized for falling behind on innovation and ceding market share to upstart brands like On Running and Hoka, which have grown rapidly in recent years.
  • Some analysts and investors have expressed concerns about Nike's lack of fresh new products in its assortment.

2. How has Nike responded to these challenges?

  • In December 2022, Nike announced a broad restructuring plan to reduce costs by about $2 billion over the next three years.
  • In early 2023, Nike said it was shedding 2% of its workforce, or more than 1,500 jobs, so it could invest in its growth areas, such as running, the women's category, and the Jordan brand.
  • Donahoe insisted that Nike is still "gaining share" and remains a dominant force in running and all things sport, and that the company will continue to bring innovation to the market.
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