"Our goal is to serve consumers more personally at scale," he said. "We have to anticipate demand. 2020 Rising Stars of Private Equity By It also gives Nike a chance to connect with customers more directly. Dec. 9, 2019 Nike wins 2019's Company of the Year award for its acquisition of artificial intelligence (AI) and predictive analytics startup Celect — the culmination of a three-part, three-year strategy to reduce lead times, increase visibility and help the retailer anticipate shifting consumer demand across global markets.
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We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services. "Prior to buying Celect, Nike had already been on a buying spree.In 2016, it bought Virgin MEGA, a digital design studio based in New York and backed by Richard Branson's Virgin Group, to help build out its SNKRS app, a commerce platform for shoes launched a year earlier.
Direct revenue now makes up about 30% of total Nike brand revenue, the company said, fueled by online growth.Nike shares are up about 8% year to date, bringing the company's market cap to $127 billion.Got a confidential news tip?
Nike reported a 13 percent increase in diluted earnings per share, driven by double-digit revenue growth, gross margin expansion and a lower average share count, partially offset by higher selling and administrative expenses and a higher effective tax rate.
The app allows Nike to learn which sports and styles shoppers prefer, how active they are, and give them style tips.
Founded in 2014 under the name
Nike's Merger and Acquisition Strategies Being a company that is continually seeking out sources of competitive advantages, Nike has historically implored merger and acquisition strategies when the proper alliances present themselves. Past aspects of the strategy included Nike’s 2017 relaunch of the NikePlus membership app, which provides a customized selection for shoppers and which gathers customer data to help Nike tailor products more effectively.
The following are the generic competitive strategies implemented in Nike’s combination strategy: Cost Leadership Strategy Differentiation Strategy “With the acquisition of Celect, Nike greatly accelerates our digital advantage by adding a platform developed by world-class data scientists.” said Eric Sprunk, NIKE, Inc. Chief Operating Officer. This [acquisition] gets us much more accelerated.