On June 28th, Nike had its worst day in the stock market since going public in 1980. On September 19, Nike Inc. announced that John Donahoe, the company’s CEO, was ousted.
Nike’s board of directors terminated the contract with Donahoe, but it didn’t sack the CEO; customers did.
They stopped buying Nike’s sneakers. They stopped boasting about them on social media. They pulled out of the value exchange. It hurt Nike’s numbers, and the board just did what it had to do.
What strategic lessons can we learn from the story?
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