Nike's Strategic Challenges

Nike is currently facing significant strategic challenges as it attempts to redefine its business model amid evolving consumer preferences. Under CEO John Donahoe, who took over in 2020, the company shifted away from mass distribution through wholesale channels towards a direct-to-consumer approach. This rapid transition limited partnerships with retailers, causing some consumers to feel alienated from the brand. The consequences have been noticeable, with criticisms from former employees highlighting a narrative of “value destruction” within the organization, raising concerns about its ability to adapt to the changing market landscape.