Nike is facing the biggest crisis in its history, but it has an ace up its sleeve: Tim Cook

Tim Cook continues to lead the most valuable company in the world and has taken it to its greatest moments, but he also serves as an independent director on Nike’s board of directors. And in fact he is the oldest of all.

According to him, there he became a key figure in saving the brand from the worst crisis in its history. Bloomberg.

Why is this important. Nike is the undisputed leader in the sports textiles industry, but it has lost almost 25% of its value this year and was even worse a few months ago.

Its sales fell 10% in the latest quarter and it had to scrap its full-year guidance due to the poor outlook. Low hours.

behind the scenes. Tim Cook joined Nike’s board of directors in 2005. That same year, he became Apple’s chief operating officer and right-hand man to Steve Jobs, who a few years later tapped him for the post of CEO. Since then, he has witnessed and participated in the meteoric rise of both companies.

However, 2024 will be a very different year for both companies: while Apple is at an all-time high and on track to break its sales record again, Nike is experiencing turbulence.

Image: Hataka.

Details. The Nike crisis has several reasons:

• A radical change towards direct-to-consumer sales that has alienated retailers, their historical allies.
• Inventory issues that led to overly aggressive discounting.
• A marketing strategy that emphasizes metrics over actual performance.
• Loss of innovation in key categories such as running.
• Rising larger waist competitors like Hoka or On Running.

Unexpected twist. Cook was instrumental in the appointment of new CEO Elliott Hill, a company veteran who began his career as a trainee in 1988 and retired until recently returning to lead the change.

The decision fits well with the legacy Cook leaves at Apple: supporting and promoting talent that understands the company’s DNA, rather than bringing them in from the outside with external rather than internal experience.

• Cook’s involvement with Nike reveals a lesser-known facet: his ability to influence beyond Apple.
• Their advice ranged from store design to crisis management in China, where Apple and Nike have strong interests… and a complex relationship.

We’ve seen a lot of winks associated with Cook’s figure over the years. From the “iPad-inspired” sneakers he wore during the iPad M4 launch to an alliance with Apple Watch straps and more.

As a result. The Tim Cook Paradox reveals the quiet power of a person who can build bridges between different business cultures. As Apple prospers, the CEO is spending some of his time using his expertise to help Nike get back on its feet.

In Hatak | Tim Cook’s Apple doesn’t want surprises. Jobs’ boldness has given way to a reliable and predictable company

Featured Image | Apple