In 2008, Nike reorganized based on sports rather than products (e.g. Soccer, Softball, Volleyball) in an approach known as “Category Offense”. The aim was not to create better shoes or apparel at first, but rather to identify what athletes are trying to achieve and where they face difficulties. Only after discovering athletes’ unmet needs does Nike attempt to apply its technical expertise to create new and improved offerings. This shift in focus has led to massive sales growth with high pricing power, people aren’t just buying shoes, but a tool to get a job done, hence willing to pay a premium price.
Moreover, once a shoe works for a sport that the the customer plays, the customer is more likely to buy more from Nike, increasing customer life time value.
Every company should implement a “Category Offense”. To do so effectively, you must discover what jobs your customers are trying to get done and how they measure success. That’s how big winners like Nike “just do it,” and you can, too!