Nike, the American multinational cooperation which is mostly engaged in footwear and apparel has recently introduced a Nike+ FuelBand, which shares the point of parity, allowing users to measure their workouts. However, what makes this product stand out among all the fitness trackers such as Fitbit is its point of differences. Firstly, FuelBand provides a universal way measure all kind of activities including yoga and bicycling which are not able to be tracked by other tracking wrist bands. Secondly, in order to encourage the health conscious consumers to stay active, the company has added hourly reminder asking you to move around for five minutes. This also enhances the nike’s value proposition by adding more features and attributes to the existing products.
In addition to presenting its point of differences, Nike company also devised a brilliant way to retain and expand the customer base. One of the most exciting news for Nike are Apple, which dominants the US smartphones industry with an increase to 43% market share in 2013, said that its new iPhone would have sensors to allow people keep track of their Fuel points. Partnership with Apple not only enables nike to retain its customer but also expand its customer base by taking advantage of the popularity of new iPhone. As more people measure the activities in Fuel points and the more dependence people have developed on them, the less possibilities for the customers to switch into other fitness trackers due to the confusion of different units,which always gets the consumer to come back to Nike’s products. Therefore, in order for the universal Fuel points, Nike is also trying to partner up with more companies especially the well-established.
Source:
http://www.businessweek.com/articles/2013-10-15/sorry-nike-youre-a-tech-company-now#r=nav-f-story
http://www.nike.com/ca/en_ca/c/nikeplus-fuelband?ref=https%3A%2F%2Fwww.google.ca%2F