How the Nike Vaporfly 4% Changed the Running Footwear Industry Investigating the competitive advantages and subsequent implications related to the introduction of a new product

Abstract

Sport product manufacturers are investing heavily on research and product development to improve the performance of athletes and be at the forefront of innovation. Ultimately, to win over market competition. In 2017, the Nike Vaporfly 4% was introduced as a new-to-the- world running footwear product. How did the introduction of this footwear product change the running footwear industry? How did the emergence of the innovation relate to the competitive advantages of the manufacturer and what implications did the product introduction have on the sport practitioners, future innovation and manufactures within the industry? The study of the specific product serves as a case example of a footwear manufacturer, Nike, at the forefront of sport product innovation. From idea to market launch and beyond, the thesis examines existing theories in product innovation and competitive strategies to explain Nike's positioning and the running footwear industry’s evolution. Furthermore, the study identifies and investigates the industry implications of the temporary monopoly created by the introduction of the Nike Vaporfly 4%. To achieve this purpose, the method used was a qualitative approach with an inductive character. Semi-structured interviews were held and constitute the primary data. A literature review was conducted, focused on 1) new product development, 2) resources and capabilities and 3) strategic positioning and marketing mix. Secondary empirical data was collected continuously throughout the project and formed a relevant foundation for the empirical findings as presented and discussed. The thesis structures the findings, discussion and conclusion into three distinct areas; 1) historical origin and development of resources and capabilities, 2) the introduction of Nike Vaporfly 4% and 3) learnings for future footwear innovation. Conclusions were drawn, highlighting a history of strategic investments in innovation and a consumer-centered collaborative approach to product development. Nike’s base of resources and capabilities establishes a strong foundation for its leading position in product innovation. The Vaporfly 4% confirms and re-emphasizes Nike’s superior positioning as a leading innovator within the running footwear industry. Lastly, it concludes future innovative efforts within the industry to be strongly influenced by the emergence and development of advanced technologies.