ASSIGNMENT 1 : Topic 3

Smart Products, Smart Company

If you don’t use a smart product yet, you soon will. Your shoes, your clothing, your watch,
your water bottle and even your toothbrush are being redesigned to incorporated sensors and
metering devices connected to the internet so that their performance can be monitored and analyzed.
What differences does that make? Take
Nike, the world’s biggest sports footwear and
apparel company. Nike has created a series of
information technology based products and an
ecosystem of gadgets and services built around
measurable personal improvement through
exercise. The Nike + ecosystem links Nike’s
corporate to smart devices such as Nike +
SportWatch GPS, the Nike + FuelBand, and the Nike
+ Running App on Apple and Android mobile devices. This enables Nike to analyze individual
performance and activity data collected by the devices to help users train and work out more
effectively. It also adds value to Nike products and a reason to stay with the brand.
The Nike + SportWatch GPS keeps track of your location, pace, distance, calories burned, and
(with the Polar Wearlink +) heart rate. The Nike + Running App tracks your route, distance, pace,
calories burned and time using your phone or another Nike-partnered device, giving you audio
feedback as you run. The Nike + FuelBand activity tracker is worn on the wrist and used with an
Apple iPhone or iPad. The FuelBand enables wearers to track their physical activity, steps taken daily,
and amount of calories burned. The information it collects is integrated into the Nike + online
community and phone application, allowing wearers to set their own fitness goals, monitor their
progress on the device LED display, and compare themselves to others within the Nike community.
Nike’s proprietary software turns all tracked movement from Nike’s smart devices into
NIkeFuel points, which can show achievements, can be shared with friends, or can be used to engage
others in competition. NikeFuel is Nike’s universal way of measuring movement for all kinds of
activities using a metric that enables comparisons- no matter what height, weight, gender, or activity.
– to past performance, another person, or daily average (which Nike defines as 2000 Fuel points.)
User of multiple Nike + devices can visit the nikeplus.com site to access all their data – including
lifetime NikeFuel points accumulated from all the Nike + devices.
Nike is developing other fitness technology products to integrate with the Nike +. The more
people measure their activity with NikeFuel, the more they are locked on in the Nike ecosystem and
the harder it will be to switch to other companies’ products. Nike’s integration of information and
technology into its products keeps people coming back to Nike’s own website and apps.
Nike believes technology is revolutionizing its relationship with consumers, turning it into a
company that provides services as well as products, In the past, when you bought a product, that was
the end of the relationship with the company. Now, the purchase of any Nike’s product has become
the beginning of the company’s relationship with the consumers. The deeper the relationship, the
more consumers will embrace and stay loyal to the Nike brand.

CSC408 : SEPT-DEC2018
 ASSIGNMENT 1 : Topic 3

Case Study Questions:

1. What competitive strategy is the Nike discussed in this case pursuing?
2. How is the information technology and smart products related to the strategy?
3. Describe the role of information technology in the products.
4. Are there any ethical issues raised by the mart product such as the impacts of consumer
privacy? Explain your answer.
Instructions:
 The weightage for this assignment is 5% of assessment marks.
 The assignment is a pair-work assignment (2 in a group)
 The assignment should be presented in infographic format and must answer all questions.
 Submit the hardcopy of the assignment by 20th April 2019- 12.00pm
 The colored-printed hardcopy should include:
 Cover page
 Case study scenarios and questions
 Infographic (answer of all questions)- 1 page only
 References
 Rubrics of assignment

CSC408 : SEPT-DEC2018