The world first got a glimpse of the Nike Air Mags in 1989, when Marty MacFly wore a pair in Back to the Future. In the past 27 years there has been speculations whether this piece of science fiction would ever come to reality. Then, last fall, Nike’s vice president of design John Hoke announced that the self-lacing shoes were possible. In fact, these shoes were something that you and I could buy in the near future. 
The development of these futuristic shoes have put Nike in the spot light, as such a concept has never been witnessed by mankind. The Air Mags are one of a kind shoes as mentioned in Liz Stinson’s article, because of the futuristic technology and elegant design used. The shoes do not use traditional lacing system, but a series of battery powered pulleys that cinch the throat of the shoes. There are sensors that senses a person’s weight and according adjusts the bottom of the shoes. Using such technology gives Nike first movers advantage or technological leadership, which is the initial advantage gained by a market occupant. Furthermore the company has patent for the technology, thus no other foot ware brand can produce this master-class without Nike’s permission. Therefore Nike benefits, as it reduces competition due to barriers of entry. In turn this will increase Nike’s profit margins because they are the only company producing in this market segment. In Addition the companies brand value also increases as Nike can be associated to an innovator.
Nike has not yet exploited monopolistic power, but has instead done something special for the community. In total 1510 pair were sold in 2011, from which 1500 pair were sold on E-bay, and 10 deluxe addition was sold at live auction. A total of $ 9.4 million was raised from which $ 4.7million accounted for sales of shoes, and the other $5million was donated by co-founder of Google Sergey Brin and his wife Anne Wojcicki. All the money was donated to Micheal J Fox’s foundation of Parkinson’s disease.
In class 15 of comm 101, I learned that Cooperate Social Responsibility is any action undertaken by a company that benefits the community. The actions of Nike is a form of CSR because it is used to help find a cure for Parkinson’s disease. This is done by creating shared value, because Nike has formed links between its business strategies of making profits through CSR.
In conclusion, I believe that this initiative will increase Nike’s competitive advantage, as it differentiate Nike (brand differentiation) from other brands by creating a positive image. Also it engages the customer and creates a positive work environment as something good is been done.
Appendix
1) https://en.wikipedia.org/wiki/Nike_Mag
2) Stinson, Liz. “Nike’s Back to the Future Self-Lacing Shoe, the HyperAdapt 1.0, Is Finally Here.” Weblog post. Wired.com. Conde Nast Digital, 16 Mar. 16. Web. 28 Oct. 2016. <https://www.wired.com/2016/03/nikes-back-future-self-lacing-shoe-hyperadapt-1-0-finally/>.
3) Luntz, Stephen. “Nike Set To Release Self-Lacing “Back To The Future” Shoes.” IFLScience. N.p., 27 May 2016. Web. 28 Oct. 2016. <http://www.iflscience.com/technology/power-laced-sneakers-promised-year/>.