Its cutting-edge marketing strategies were widely imitated, and with many of its original fans entering middle age, Nike now finds itself ranked fifth in popularity among coveted buyers between 18 and 24. 

The $28 billion company is not about to settle for fifth place, however. Its drive to innovate is stronger, and it has geared up to unleash an array of patented athletic gear that marries the newest technology and enhanced product performance. With dozens of physiologists and specialists in biomechanics among its employees, the firm has been adding to its array of high-tech patents, filing almost 300 patents in one recent year, including ones for footwear, for digital technologies to measure physical exertion, and for improved manufacturing processes. Prototypes are currently being developed for biofeedback products including shoes that change color based on the wearer’s activity level, sensor-dotted workout clothing, and golfing glasses that describe the flight of a ball. Nike was recently named Inc. magazine’s Most Innovative Company.

One product already on the market is shoes made with Nike’s Flyknit technology, a means of knitting footwear that eliminates manufacturing waste and ensures a compression fit, for a shoe so flexible it feels like going barefoot. Free Hyperfeel is another new running shoe designed to feel like no shoe at all, while Dri-Fit Knit and Aeroloft clothing use new moisture-wicking and ventilation technologies to keep wearers dry and comfortable. The FuelBand, a bracelet device that measures the wearer’s rate of physical activity, has also become popular, and many more shoes and other products are in the works, including golf clubs with bigger sweet spots and customizable golf balls. 

Nike’s CEO calls innovation the core of the company’s character, the big differentiator between Nike and its competitors. He envisions even more ways to give athletes useful feedback on their bodies, whether their goal is to be more competitive, more fit, or just more inspired by their workouts. For instance, new Nike technologies could use your movements or speed to change the tempo of the music you’re listening to, or to change the color of something you’re wearing. 

Questions

1. In your opinion, does a spirit of innovation create a competitive advantage for a company? How can Nike use its innovative spirit to its advantage in the marketplace? 

2. What other product extensions might Nike consider for its Flyknit technology?