Case 01 — Nike · Phil Knight · 1984
You can sign five established NBA players, or spend the whole basketball budget on one rookie who would rather sign with your competitor. Which?
Nike is losing the running boom to Reebok and aerobics. Your basketball business is a distant third behind Converse and Adidas. A college guard named Michael Jordan is entering the draft. He has never played an NBA game. He wants Adidas — he has said so publicly. Your entire basketball endorsement budget for the year is roughly what one player would cost.
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§02 — More forks
- Lululemon · 1998You have one store, no ad budget, and a pair of yoga pants that costs four times what anyone pays today. How do you price it?
- Amazon · 2000Do you let outside sellers compete with you, on your own product pages, for your own customers?
- Glossier · 2023The thing that made your brand special is the thing now capping its growth. Do you break your own rule?
- McDonald's · 1956Your franchise royalties barely cover overhead. Where does the money actually come from?