Nike's Excess Inventory Problem Case Study As one of the world's most recognized athletic brands, Nike has many goods to manage. And as a result, it has had difficulty keeping inventory under control. In the early 2000s, the company adopted an updated inventory management software after losing around $100 million in sales due to issues with tracking goods. The software promised to help Nike predict items that would sell best and prepare the company to meet demands, but bugs and data errors resulted in incorrect demand forecasts and led to millions more lost. Nike's case illustrated just how crucial it is to correctly manage stock levels and your inventory management system. When choosing an inventory management solution, it's vital to ensure the quality of software your vendor provides is accurate, flexible, and customized for your particular business. It needs to be able to grow and change as the business and the customer base change. Nike continues to have issues with inventory. 2016 was challenging for the retailer, as Nike's gross margin declined due to a higher percentage of discounted sales because of inventory management problems. The retailer continues to take steps to control its inventory management practices through manufacturing overhauls better and allowing new technology to bring manufacturing to the digital age. Ultimately Nike will remain a global leader as it keeps exploring new markets, innovating new products, and generating its supply channels. Nike (NKE -1.31%) has been investing in technology to track its inventory. This includes putting RFID chips in its shoe packaging so it can know how its shoes are selling. In theory, this would allow the company to know which of its stores have the inventory to fulfill a digital order and which don't. Nike has also purchased Celect, a technology company founded by two MIT professors, to help it improve its ability to manage inventory and to sell more product direct to consumers. Answer the following question and present your answer in the class. 1. Create a SWOT analysis 2. Identify the problem of Nike 3. Provide a Solutions based on your module