Nike Faces the Biggest Crisis in Its History. However, It Has an Ace up Its Sleeve: Tim Cook

Apple CEO Tim Cook continues to lead the world’s most valuable company and has taken it to great heights. He also serves as an independent director on Nike’s board, where he holds the most senior position.

According to Bloomberg, Cook has played a crucial role in helping the sports brand recover from one of the worst crises in its history.

Why this matters. Nike is the undisputed leader in the sports apparel industry, but its value has dropped nearly 25% this year, worsening in recent months.

In the last quarter, the company’s sales fell by 10%, and it was forced to withdraw its annual projections due to a bleak outlook. Times are tough for the brand.

Behind the scenes. Cook joined the Nike board in 2005, the same year he debuted as Apple’s COO and became then-CEO Steve Jobs’ right-hand man. A few years later, Jobs proposed him as CEO. Since then, Cook has witnessed and participated in the remarkable growth of both companies.

Here’s an overview of Cook’s career:

• 1982 - IBM: After graduating from Auburn University in Alabama with a degree in industrial engineering, Cook joined IBM.
• 1988 - MBA: Cook earned an MBA from Duke University in North Carolina while continuing to work at IBM.
• 1994 - Intelligent Electronics: He was named COO of Intelligent Electronics, a position he later held at Apple, which helped propel him to the top.
• 1997 - Compaq: Cook became VP of corporate materials at Compaq.
• 1998 - Apple: Jobs recruited him as senior VP of worldwide operations at Apple.
• 2005 - Nike: Cook joined Nike’s board of directors as an independent director.
• 2011 - Apple CEO: He became the CEO of Apple following Jobs’ resignation two months before his death. At the time, Cook had been serving as COO for six years.
• 2016 - A different role at Nike: Cook became Nike’s lead independent director and chairman of its compensation committee.
• 2024 - Change of CEO at Nike: He played a key role in the appointment of Elliott Hill as Nike’s new CEO.

However, in 2024, the situations for Apple and Nike are very different. While Apple is reaching record highs and is on track to break its turnover record, Nike is experiencing turbulence.

A close look. Several key factors contribute to Nike’s current crisis:

• A radical shift toward direct sales to consumers has alienated retailers, which have historically been Nike’s allies.
• Inventory issues have led to overly aggressive discounting strategies.
• Nike’s marketing approach has prioritized metrics over actual effectiveness.
• Innovation has declined in critical categories, like running.
• Competitors with broader appeal, such as Hoka and On Running, have emerged.

An unexpected twist. Cook played a crucial role in appointing the new Nike CEO. Hill, a long-time veteran of the company, began his career as an intern in 1988 and spent many years there until his retirement. He recently returned to lead the turnaround.

This leadership decision aligns well with the legacy Cook is leaving at Apple: fostering and promoting talent that understands the company’s core values rather than bringing in external talent with outside expertise.

• Cook’s involvement with Nike highlights a lesser-known aspect of his career: his influence beyond Apple.

His guidance has included everything from store design to crisis management in China, a region where both companies have significant interests and a complex relationship.

Over the years, there have been several references to Cook as a central figure in these collaborations. This includes the “Made on iPad” sneakers he wore during the M4 iPad Pro presentation in May and the partnership with Apple Watch straps, among other examples.

In summary, Cook’s role illustrates the subtle power of someone who can bridge diverse business cultures. As Apple continues to succeed, its CEO dedicates part of his time to helping Nike find its direction again.

Image | Budiey

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