2 Nike Case

NIKE-TIPTOEING INTO
METAVERSE
GROUP-2
ASTHA GARG
RAMYA R
BANTU ANJANA
ISHA MITTAL
KUNDAN PATHAK
RAJAN SINGH
VIPLAV KUNTE
Case Summary
Throughout 2021, excitement about the metaverse had been building steadily.
The buzz reached a fever pitch as the company was changing its name to Meta and that it would spend $10 billion
to build "the metaverse."
● Nike had been investigating the opportunities in this new virtual environment.
● Nike had employed a "probe and learn" strategy to evaluate the metaverse as a new channel for customer
engagement and to create new digital revenue streams
● Nike wanted to define a cohesive metaverse strategy that would help drive its business goals.
● Nike's digital team needed to understand how each of the metaverse initiatives would help Nike to grow
revenue, build brands, and promote its thought-leadership position as an innovator.
● The team then needed to prioritize these initiatives by assessing their risks, rewards, and reversibility.
● Finally, it needed to define a roadmap to scale and enhance each initiative.
● In charting its course in the metaverse, Nike also needed to consider whether the timing was right to place
big bets on metaverse platforms and assets
What is the Metaverse? What are the use cases and opportunities
for organizations like Nike in the Metaverse? Are there any risks ?
Metaverse:
Metaverse is a virtual world in which people live, work, shop and interact with others -- all from the comfort of their
couch in the physical world.
Nike initiatives to explore metaverse:
● Fortnite/Nike in-game brand integration

● Cryptokicks: blockchain-based digital sneakers
● Nikeland on Roblox
● Trademarks for virtual sneakers and apparel
● Acquisition of RTFKT a virtual shoe company and NFTs
Risks:
● Diverge in brand presentation from traditional contexts
● Metaverse new for courts
● Reputational harm can also arise from unauthorized uses of a brand.
Is metaverse a hype or reality that organizations should
embrace?
Hype or reality:
A hype that cannot be ignored or underestimated and a reality which cannot be accepted at the given point of time
due reasons like lack of infrastructure, security, unclear regulations and also lack of understanding of what
metaverse actually is.
To embrace or not?
Organizations should be watchful about the developments about metaverse and play the cards close to their chest
before getting a complete idea of the functioning of this digital space, once the confidence about platform is gained
then its advisable to embrace and leverage the benefits metaverse provides for financial as well as strategic benefits.
Evaluate the specific Metaverse initiatives from Nike? What are the
pros and cons of each initiative?
Pros:
● Roblox initiative gave a gaming environment and a simulation

Fortnite/Nike in-game brand integration
experience along with the product
● Blockchain technology to verify the originality of the product
● Partnership with digital sneaker company gives an advantage in CryptoKicks: Blockchain- based digital sneakers
increasing theffootprin
Nikeland on Roblox
Cons: Trademarks for virtual sneakers and apparel
● A Nike+ account, which costs $49 a year, is necessary to use

Acquisition of RTFKT, a virtual shoe company, and NFTs
the Nike+ app.
● With a price tag of $149, the Nike+ FuelBand is one of the
most expensive fitness trackers available.
● The Xbox One does not come with the Kinect sensor, which is
needed for the Nike+ Kinect Training software.
Compare Adidas's approach with Nike?
● Adidas adopted a community-first approach

● Nike focused on Web2 metaverse
platform Roblox, before diving into
● Web3
Adidas focused on partnering with newer,
decentralised platforms
● Nike more towards centralised,

● Adidas released a series of NFTs that gave owners controlled platforms
access to special physical goods, such as hoodies,
and to future digital experiences.
● Adidas took over a bolder approach than Nike’s

Has Nike achieved Business - IT Alignment ? State reasons.
Yes, it achieved business IT alignment
Nike Nike Nike

SNKRS Training Run
Club Club
Apps
● More than 150% growth in mobile
sales in 2021 RTKFT
Datalogues (digital Acquisitions
sneakers)
● Dropped the premium subscription
fee for the Training Club app Fortnite/Nike in-
game brand
integration
● Nike reported $1 billion in revenue
Cryptokicks Metaverse
for the first time from SNKRS app
Nikeland &
Trademarks
Have you used any Metaverse platforms? Have you
experimented with NTFs? What was your experience?
Yes, it's Decentraland.
● Decentraland is a 3D virtual reality platform powered by the Ethereum blockchain.
● Within the Decentraland platform, users can create, experience, and monetize their content and
applications.
Here we may buy virtual plots of land in the platform and start to make our casino, game-playing station, etc.
To build these we can either create our own model or buy models through NFT- which is a non-fungible token
inside the decentral platform. As you keep on building our empire people can come there to visit our game
station. They can play games, gamble in our casino.
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NIKE-TIPTOEING INTO

Nike initiatives to explore metaverse:

● Fortnite/Nike in-game brand integration

● Roblox initiative gave a gaming environment and a simulation

Cons: Trademarks for virtual sneakers and apparel

● A Nike+ account, which costs $49 a year, is necessary to use

● Adidas adopted a community-first approach

● Nike more towards centralised,

● Adidas took over a bolder approach than Nike’s

Yes, it achieved business IT alignment

Nike Nike Nike

● Decentraland is a 3D virtual reality platform powered by the Ethereum blockchain.

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