Question

You will create a COVID-19 action plan for your company (NIKE) by the following steps:

2) How has the company responded to these effects? How have competitors responded? (Difference/Same)

Please provide sources.

Answer 1

Here is how Nike has responded to the COVID - 19 action plan:

China is Nike's top growth market area and the outbreak began in that country. Seeing the overall prospective and recovery the plan has been to be ready to bounce back with a clear strategy.

Nike is using its global expansions as the biggest advantage as it is drawing all learning and market insights from various sides. They have planned four stages to initiative the response to COVID - 19:

• The first stage would involve the containment plan which means to shut down the stories so that the spread of the virus can be controlled.
• In the first stage, Nike will rely heavily on e-commerce and website sales and is evident since 30% order increased happened in China in the last quarter.
• Post the containment stage the focus is on the recovery stage when the brick & mortar stores across the work will start to open but expected sales volume will be less.
• Following the recovery period will be the return of normalcy when the traffic and in-person shopping will hit the levels which were existing before the virus situation.
• The last is the expected stage of return to full growth and aggressive marketing for Nike.

Nike has been vigilant to realise that how digital sales increased as stores started to open in China and hence the reliability and co-existence of e-commerce and physical stores work well.

Apart from the same for COVID - 19 Nike has been working toward providing equipment for nurses and doctors and are planning to prototype face shields.

Nike has been building the athlete focus and culture by making the Nike training club app absolutely free.

Sources

• Nike Website - response efforts and purpose
• Bloomberg article on Nike cope up with COVID - 19

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Part B)

Response from Competitors:

• It seems like Nike preparedness is high & better as in response to the same other competitors are having a difficult time.
• In Germany, Adidas is not able to pay rents for the stores and is seeking support from the owners.
• The response message on the Adidas website is precautionary and mentions that the situation is being checked and no other plan has been released.
• Adidas and Reebok both have closed the stores in Europe, the US and Canada which is in accordance with the directive of the local authorities.
• Adidas is expecting to open stores in liaison with local authorities especially in the countries where the impact is minor or the cases are declining.
• Under Armour also mentioned that all North American stories will be shut considering the health and safety of teammates, athletes and customers.
• New balance also mentioned that is it implementing a lot of processes and measures to ensure safety and health of associate, communities and customers and has announced the closure of the office, factory and various retails stores across US, Canada and Western Europe.

Some unique measures like Carbon which is a 3-D printing company have collaborated with Adidas to work on face shields for health workers and nasal swabs required for the COVID testing.

Much of the response system is same whereas the approach to bounce back will define the brand strength and differences.

Sources: NBC Sports articles on COVID Response by Adidas, Adidas & Reebok website, CNBC news on brands response & interview with CEO

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