From Global Giants to Growing Brands: What SMEs Can Learn from Nike and UFC

One of the biggest differences between all businesses that scale successfully and those that just exist, is clarity of vision. Conglomerate brands, like Nike and UFC, know exactly where they’re going, and every decision they make moves them closer to that destination.  And this isn’t just about making up a fancy mission statement on the website or on the 45-page strategy deck that nobody reads. It’s about making sure every part of the business is moving in the same direction. 

The Principles you need in your Playbook 

Success as an SME is rooted in your definition of these three core principles. 

Purpose

• Understand why you really exist - you should be able to write this in one sentence. Make it focused on impact and keep it clear, benefit driven, and even better, keep it under 15 words. 

Vision 

• Realise where your business will be in 3-5 years. Make it bold and make it measurable.  

Advantage

• Define exactly what it is that sets you apart and keeps you ahead of the competition.

Having a clear vision makes decision-making easier. If an opportunity doesn’t fit the plan, you pass on it. If a process, product, or team structure isn’t aligned to your vision, as the CEO, you fix it, and to quote Roy Keane: “that’s your job”.

‍A consumer-first approach

There isn’t a week that goes past when I don’t get the comment “oh but that’s Nike or UFC, we are not big guys like them, we don’t have their budget”, when faced with challenges from SME’s. It could be a brand position, product, or go-to-market strategy, and my answer is always the same. Both Nike and UFC started out as SME’s like you, but here is what they did: 

• They had a maniacal focus on winning, and teamwork 
• This focus was driven by their obsession with their consumer 

The consumer was, and always is, the north star in any strategy. The consumer could be a professional Nike Athlete or a fight fan in Brazil, it could be a 5k Park Run runner or somebody who trains in MMA at the local gym. The question for both brands was, and is today, how do we serve them better? If you cut out the noise from internal and external sources and focus on your consumer, then you'll do the right thing for them. This applies to B2B and B2C brands in equal parts. To have the advantage, you must ensure your consumer focus also includes ways to break the mould of the industry or business you are in. Doing the same thing as your competitors simply won’t cut it.  

UFC did this by:

• Not owning any stadiums or venues (unlike football teams)
• Not allowing third parties to create their content (they produce it all themselves, not TNT or ESPN)
• Facilitating various fan appetites to watch either live or taped content ( you can still watch UFC One on UFC Fight Pass).

Nike did it with:

The “Futures business model”, and founder and former CEO Phil Knight shared this in his memoir Shoe Dog.

• It positions the business as a cash-generating tool for when times were still lean during their early growth days. 
• During 2015, 87% of Nike's wholesale footwear shipments were made through futures orders, as was 67% of Nike's U.S. wholesale apparel business.

In the book, Knight writes, "Why not go to all of our biggest retailers and tell them that if they'd sign ironclad commitments, if they'd give us large and nonrefundable orders, six months in advance, we'd give them hefty discounts, up to 7 percent?" The system stuck and has been a key part of Nike's business model since.

Management style

Nike and UFC teams have been organised in a matrix management style, rather than a traditional hierarchical style. It’s this structure that has supported and helped to maintain a culture of winning. Why? Because it’s in the DNA of every athlete and in every team member. It’s about leaning into your teammates for their excellence in their field, trusting their irreverence, risk-taking and competitive fire. Allowing them the opportunity to bring inspiration and innovation to their everyday roles. Your role is to help, guide and coach them but then get out of the way and let them do their job. As long as they are focused on the vision and the consumer.

‍So how do you turn your strategy into motion?

Here’s the three-step formula: 

1. 90/180/360 day plans
2. Pick owners of each step
3. Weekly check ins that are fact based and measurable

‍Moving from strategy to storytelling 

Both Nike and UFC are some of the greatest brand story tellers ever. 

Nike x English Premier League 

When Nike partnered with the English Premier League to be the ball of choice, Nike had a new design, material and technology for the ball. However, the question was, is that interesting enough to get huge media coverage and space? 

Nike went to market and launched a campaign with the the strap line “Its rounder” and, low and behold, everyone wanted to know how it was rounder! It was an open goal to go and tell the story of the design, materials and the technology.  

Humanising UFC 

In its youth, UFC struggled to gain mainstream media traction because it was shrouded in negative connotations of unruly fighters and lack of discipline. 

To reframe public and media positioning of UFC, we knew we needed to humanise the sport, and bring athleticism front of mind. So, we invited 50 of the UK and world's top media personnel to a thought leadership session with Lorenzo Fertitta, owner of UFC, joined on stage by the CEO of BT Sport and the CEO of EA Sports. The aim was to educate the media on what the UFC opportunity was for them. The event was followed up by Fight Night London and the media were clamouring for octagon side seats. 

For SMEs, the lesson is clear: you don’t need the resources of a Nike or UFC to adopt some of their most effective strategies. By focusing on your vision, your brand story and your customer/consumer, you will win.

Two call to actions come from both brands. 

Nike “Just Do It” 

UFC “Its Time”

So, will you just do it, and is it time?

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