It’s hard to take hard decisions in business: Nike Story

http://techcrunch.com/2014/04/19/nike-says-the-fuelband-isnt-dead-new-color-options-coming/

Nike was said to be shutting down its FuelBand department on the heels of layoffs on Friday, signalling a significant exit of the wearable fitness device market by one of the more prominent companies involved in the space. That’s not quite true, however, according to information provided to Re/code by the company.

 

There were indeed some layoffs, Nike confirmed, but it also said it’s still committed to the Nike+ FuelBand SE, plans new color options for the gadget and should support it and continue to sell it for the foreseeable future.

[…]

There has been some speculation that Nike plans to shift focus to software in the future, and possibly support the hardware efforts of others, including Apple. Apple is rumored to be working on an iWatch with health-tracking features, and its CEO Tim Cook sits on Nike’s board of directors.””

 

Nike has 3 options:

1. Shutdown it and look for NPI options

2. Partner with tech leaders of the market (Apple, Google) and continue produce hardware while the software and eco-system is developed by partners

3. Completely disrupt this emerging field, as fitness and health used to be his Nike’s stronghold. However it won’t be easy for Nike to separately build the eco-system tha can talk to internet of things! If Nike can do this, it can re-create history like before.

 

It will be interesting to watch, where Nike is moving.

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Nike Story: Classic Portfolio Decision Taken in Right Time

Nike Story: Classic Portfolio Decision Taken in Right Time

 

Nike is purportedly killing off their wearable hardware efforts, including the FuelBand.  why? because it is a right decision taken by their portfolio management team. The market of wearable and health gadgets which Nike formerly entered as a part of their growth strategy, is being threaten by new entrants mostly tech giants like Apple , Samsung , Google who not only have the potential to penetrate the market with a faster rate than Nike, but also has the road-map that aligns to their business models through innovation at the eco-system level. Going through a simple SWOT analysis indicates this fact very strongly. 

“Because the wearables market is about to get really, really crowded — primarily by devices that will do everything the FuelBand does, and more.”

And guess who’s on Nike’s board? Apple CEO Tim Cook. Throw in the fact that Apple’s Worldwide Developer Conference is right around the corner, and the pieces seem to fit together almost too well. If Apple was ever going to let Nike know that it might be time to get out of the dedicated-wearables game, it’d be right about now.