Nike is reorganizing its global women's fitness business to better target the $13 billion women's fitness market. The reorganization will transition decision making from a centralized to decentralized structure and establish a semi-virtual organization with regional and functional leadership teams. It will also align Nike's women's fitness brands and collections into a cohesive long-term strategy to make Nike the dominant brand for women in the fitness space.

1. BA401 Nike’s Global Women’s Fitness Business

2. Reorganization

3. Organization Structure Before After

4. Organization Structure - Before Footwear Apparel Equipment 66% 28% 6%

5. Organization Structure - Before US Europe, Middle East and Africa Asia-Pacific Americas 44% 33% 16% 7%

6. Decision Making C = Centralized D = Decentralized

7. Organization Structure - After

8. Changing The Game

9. Changing The Game

10. Changing The Game Phase III - Oct Phase II - July Looking Forward Phase I - April Making it happen January Feb-Mar

11. Phase I Phase I

12. Phase I Great initiatives. blurry boundaries btw fitness and active wear > Women’s fitness market = Encompassing all of the Activities women performed to keep fit in the gym Huge business opportunity. Size of $ 13 billion. U.S. > B5 EU > Asia 25% FW, 70% AP, 5% EQ 5-8% Growth rate

13. Phase I Leading brands in some categories (e.g. footwear) AP market is fragmented business. Competitors Reebok > Women’s aerobics Ads > Fashionable athletic wear Puma > Yoga SME > Lulu Lemon, Under Armour, Danskin Competitors > Changing dramatically > Plan!!!

14. Phase I In U.S., Women spent $ 7 trillion a year. Target group 22 year-old Confident Want to work out hard and look good (optional) >>> “Sweat Beauty” Next Wanted, Shopped, Connect, Approached sports

15. Phase I Thing she wanted. Micro-segmentation approach The way she shopped. Mall, catalogs, boutiques Not sporting goods retails Connected Emotional Connection Not “Hero-worship”

16. Phase I From “Initiative” To “Aspiration brand of choice ” “Sustainable” ‘n “Profitable” Inconsistent relationship with consumer Color-based collections Inconsistent retail experience Isolated initiatives Inconsistent, Inadequate commitment and Resource Incremental, Isolated business opportunities The dominate brand in her mind Integrated, concept-based collections Consistent defining retail experience – Globally Aligned Global Strategy Integrated, Fully Resourced Global Team Accelerated Global Business Opportunities

17. Phase I Great revenue potential No leading brand Store within a store Nike 'ownership, some Brand expand’ opportunities Nike presence Elevate to tier two over time

18. Phase II Focused on developing an overarching plan (tier one and two) Integrated collections from head to toe. Problem: Difference timelines > Front-end > Back-end 21 month calendar

19. 21month calendar

20. Phase III Phase III

21. Semi-virtual organization Virtual leadership team Business Leads Functional Leads (Leveraged)

22. Phase III

23. Making it happen Global GM Women’s Fitness Global Directory Strategic Planning Global Director Marketplace Development Winslow Minto Sittig

24. Making it happen Women’s Creative Director Women’s Innovation Director Women’s Merchandising Director Director Operations & Supply Chain

25. Making it happen Global Director Women’s Footwear Global Director Women’s Apparel Global Director Women’s Equipment Director Women’s Brand Initiatives

26. Making it happen USA EMEA Asia Pac

27. Making it happen Virtual fitness sport team “Captain”

28. Looking Forward The change was slow Uncover challenges

29. Thanks for ur attention