What Can We Learn From Nike’s Recent Exit From The Golf Business? Core Competency
Nike has been one of the successful and popular brands in the sports business industry. That is why its recent exit in the Golf Business created a buzz as to how is the company keeping up and what would happen to the company after move. Clearly, the company know when to step down and focus on what is most profitable for them. We can all learn from Nike’s core competency. Jim Collins, in his book “Good to Great”, calls core competency as “a simple crystalline that flows from deep understanding about the intersection of three key dimensions:
- What you can be best in the world at;
- What drives your economic engine; and,
- What you are deeply passionate about.”
Nike’s exit from the Golf equipment business to focus on footwear and apparel, is a clear indication that one of the world’s most valuable sports brand knows its core competencies and have every intention in sticking to the things where they are one of the, if not the, best at.
This attitude and focus shows why Nike is not just a good company but a great one. And we can take a couple of lessons from the news.
Go for Lean and Hungry over Fat and Greedy.
While expanding one’s business is not always a bad idea, it is always a better idea to not lose sight of the part of your business that you can be the best in the world at (your core competency) and stick to your guns with them.
Good to have but not Crucial to have
Never be afraid of exiting the parts of your businesses that’s not part of your core competency. These parts should be treated as bonus (as long as they serve you and your assessment about this should be ruthless) and not interpreted as a crucial part of your business. On this note, they Nike took a rest and tested their marketability in the world of Golf sports. And that’s a good quality for any entrepreneurs. What’s the good thing about this is that they know how to strategize and how to back off.
Finally had it right when he said in the article “They’re killing it in apparel. They’re killing it in footwear. It’s just business.”
Never lose sight of your Business. As an Entrepreneur We all can learn from Nikes’s journey and its core competency. Not all business were able to stabilize their business fast after being on the verge of bankruptcy because with all honestly, they are not yet clear of their core competency. Have a foresight on when to give up and when to keep going. Do your research always. And learn from those who have walked before you.
As Entrepreneurs, it’s important that we know these 3 core dimension for your business so that when there’s a need to innovate or try another path, we are still on top of things.
Relative Podcast: Journey of Entrepreneurship Episode 6 – Overcoming Obstacles
Relative Article: Successful Entrepreneur Mindset: Turning Failure into Success