Leading in the Digital Age: Navigating Strategy in the Metaverse
In April 2025, Professor Francesco Derchi from the Open Institute of Technology (OPIT) and Chair of OPIT’s Digital Business programs entered the online classroom to talk about the current state of the Metaverse and what companies can do to engage with this technological shift. As an expert in digital marketing, he is well-placed to talk about how brands can leverage the Metaverse to further company goals.
Current State of the Metaverse
Francesco started by exploring what the Metaverse is and the rocky history of its development. Although many associate the term Metaverse with Mark Zuckerberg’s 2021 announcement of Meta’s pivot toward a virtual immersive experience co-created by users, the concept actually existed long before. In his 1992 novel Snow Crash, author Neal Stephenson described a very similar concept, with people using avatars to seamlessly step out of the real world and into a highly connected virtual world.
Zuckerberg’s announcement was not even the start of real Metaverse-like experiences. Released in 2003, Second Life is a virtual world in which multiple users come together and engage through avatars. Participation in Second Life peaked at about one million active users in 2007. Similarly, Minecraft, released in 2011, is a virtual world where users can explore and build, and it offers multiplayer options.
What set Zuckerberg’s vision apart from these earlier iterations is that he imagined a much broader virtual world, with almost limitless creation and interaction possibilities. However, this proved much more difficult in practice.
Both Meta and Microsoft started investing significantly in the Metaverse at around the same time, with Microsoft completing its acquisition of Activision Blizzard – a gaming company that creates virtual world games such as World of Warcraft – in 2023 and working with Epic Games to bring Fortnite to their Xbox cloud gaming platform.
But limited adoption of new Metaverse technology saw both Meta and Microsoft announce major layoffs and cutbacks on their Metaverse investments.
Open Garden Metaverse
One of the major issues for the big Metaverse vision is that it requires an open-garden Metaverse. Matthew Ball defined this kind of Metaverse in his 2022 book:
“A massively scaled and interoperable network of real-time rendered 3D virtual worlds that can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communication, and payments.”
This vision requires an open Metaverse, a virtual world beyond any single company’s walled garden that allows interaction across platforms. With the current technology and state of the market, this is believed to be at least 10 years away.
With that in mind, Zuckerberg and Meta have pivoted away from expanding their Metaverse towards delivering devices such as AI glasses with augmented reality capabilities and virtual reality headsets.
Nevertheless, the Metaverse is still expanding today, but within walled garden contexts. Francesco pointed to Pokémon Go and Roblox as examples of Metaverse-esque words with enormous engagement and popularity.
Brands Engaging with the Metaverse: Nike Case Study
What does that mean for brands? Should they ignore the Metaverse until it becomes a more realistic proposition, or should they be establishing their Meta presence now?
Francesco used Nike’s successful approach to Meta engagement to show how brands can leverage the Metaverse today.
He pointed out that this was a strategic move from Nike to protect their brand. As a cultural phenomenon, people will naturally bring their affinity with Nike into the virtual space with them. If Nike doesn’t constantly monitor that presence, they can lose control of it. Rather than see this as a threat, Nike identified it as an opportunity. As people engage more online, their virtual appearance can become even more important than their physical appearance. Therefore, there is a space for Nike to occupy in this virtual world as a cultural icon.
Nike chose an ad hoc approach, going to users where they are and providing experiences within popular existing platforms.
As more than 1.5 million people play Fortnite every day, Nike started there, first selling a variety of virtual shoes that users can buy to kit out their avatars.
Roblox similarly has around 380 million monthly active users, so Nike entered the space and created NIKELAND, a purpose-built virtual area that offers a unique brand experience in the virtual world. For example, during NBA All-Star Week, LeBron James visited NIKELAND, where he coached and engaged with players. During the FIFA World Cup, NIKELAND let users claim two free soccer jerseys to show support for their favorite teams. According to statistics published at the end of 2023, in less than two years, NIKELAND had more than 34.9 million visitors, with over 13.4 billion hours of engagement and $185 million in NFT (non-fungible tokens or unique digital assets) sales.
Final Thoughts
Francesco concluded by discussing that while Nike has been successful in the Metaverse, this is not necessarily a success that will be simple for smaller brands to replicate. Nike was successful in the virtual world because they are a cultural phenomenon, and the Metaverse is a combination of technology and culture.
Therefore, brands today must decide how to engage with the current state of the Metaverse and prepare for its potential future expansion. Because existing Metaverses are walled gardens, brands also need to decide which Metaverses warrant investment or whether it is worth creating their own dedicated platforms. This all comes down to an appetite for risk.
Facing these types of challenges comes down to understanding the business potential of new technologies and making decisions based on risk and opportunity. OPIT’s BSc in Digital Business and MSc in Digital Business and Innovation help develop these skills, with Francesco also serving as program chair.