NIKE Inc.

Has Innovation Gone Too Far?

In our past presentations, our team has identified differing company narratives, as well as a key communication
objective that Nike strives to achieve. As the director of communications, this document is designed to
summarize our final communication plan and outline the recommendation as to how we can achieve our
communication goal of increasing transparency.

Below is a summary of the company’s narrative, our stakeholders, and how they are affected by the
communication issue and objective. It also dives into the specifications of the recommendation.

Nike Running Out of Options

Nike has many different perceptions depending on the individual or organization. At this point in time, there is
belief that certain innovative products that Nike has developed is a form of technological doping. Due to this,
the current communication issue relates to Nike products being banned from professional sporting competition.

“When does innovation In general, sports governing bodies want to maintain a level playing field, which
cross the line into they claim isn’t possible if other professional athletes don’t have access to the same
technological doping?” technology as Nike athletes, which is why they are being banned. (Dobel,
2013). This is not beneficial for Nike, as an innovative company, because their
- Enrique Dans, products need to be used in competition by Nike’s athletes.
Forbes, 2020
Background
Currently, Nike spends a significant amount on research and development in comparison to other companies
within the industry. This has resulted in many new and innovative products that competing companies can’t
compete with. As a result of this, Nike athletes may have access to products
that give them a competitive advantage.

Stakeholders have the potential to be affected by this communication issue

and objective. Nike identified three stakeholders in relation to this issue,
which include: Nike research Lab, Nike professional athletes and non-Nike
professional athletes. Both the Nike research lab and Nike professional
athletes are definitive and negatively impacted by governing bodies banning
Nike products.

Non-Nike professional athletes are dependent and positively impacted by the issue. Both stakeholder groups can
benefit from greater communication on rules and regulations from governing bodies because it will ensure
parties stay on the same page and have a level playing field is being maintained.

Invite Organizations to Research Summit

To achieve our communication objective of increasing communication, we first recommend that Nike hosts a 2-
day summit with the 15-person council of the World Athletics Organization. During this venture, we would be
transparent with the governing board about the effects our products have on runners’ performance. This would
happen quarterly.

The organization would also have opportunities to share their assessment as to which products may be subject
to inquiry for investigation for competitive use.

We would also request that the council members sign a non-disclosure agreement, stating that information that
is shared during this summit should not be shared with any non-World Athletics employee at any time to ensure
no data is leaked to our competitors.

Assuming that the organization would be able to send all 15 council members on this excursion, we estimate the
cost for a two-day trip from their Monaco headquarters to Nike’s Beaverton headquarters, using conservative
measures, would cost around $38,000, with expenses ranging from $2500-$2750 per person (World Athletics,
2020).

By initiating this information exchange, Nike would be able to more accurately assess the risk of products being
banned in competition. This will help us limit the chances of our athletes being blindsided by possible product
bans.

Meet with Professional Runners

Our professional runners are a key stakeholder and it is critical that they are involved in our product evaluation
process. Another step towards furthering our company’s transparency involves a conference dedicated to
detailing the key takeaways from the summit with the World Athletics organization to our top 25 marathon
runners, meeting quarterly. This conference would give our athletes a clear idea of which products are
considered legal by World Athletics, and which products may be subject to further investigation.

On average, an all-inclusive weekend trip to our Beaverton

headquarters would cost $3,000 per runner.

The total expense for the conference would be $75,000. This

initiative allows us to strengthen our relationship with our
professional runners by ensuring the legality of the products
they choose to use in competition.

Conclusion
In order to increase communication and transparency with
regulatory bodies, we suggest that we host a research summit with the World Athletics organization and host a
conference with our professional runners.

Providing this transparency with athletic governing bodies and Nike professional runners allows us to assess the
risk of our products of being possibly flagged from competitions. Moving forward, we will be able to provide
innovative products with less risk and more transparency within the athletic community. Doing this, we remain
in a low budget of $115,000 quarterly and can do more than have a competitive advantage over athletes and the
leagues involved in a way where we can all Just Do It!
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