Mergers, Acquisitions, Alliances and Synergies Case Study

Case Title:

“Nike and Apple: A Successful Partnership?”

Abstract:

On May23, 2006 Nike and Apple announced about their new joint venture which could bring the worlds of sports and music together like never before. They were about to launch the innovative Nike+iPod, the product of their partnership. Both the companies announced that their first product would be Nike+iPod Sport Kit, which was a wireless system that would allow the Nike footwear user to communicate with their iPod nano. This would provide the user a unique personal running experience and the user could workout their experience. Mark Parker and Steve jobs the CEOs of Nike and Apple respectively unveiled their new product Nike+iPod at an event in New York (US). The event was attended two of the world’s most famous sports persons, seven time Tour de France champion Lance Armstrong and marathon record-holder Paul Radcliffe. They were quite hopeful of their partnership would elevate the music and sports to a new level. Nike footwear was to be connected to iPod nano through the Nike+iPod Sport Kit. Users could get the information on time, about the distance, calories burned and pace. Footwear users could also get to listen to the Nike Sport Music section on the iTunes and management perceived that it would help to maximize the Nike+iPod experience.

This case unfolds the new product and also deals with its pricing and promotional part.

Pedagogical Objectives:

• To discuss about the strategic alliance between Nike and Apple
• To analyse the marketing mix
• To debate on the success of the new product.

Keywords : Mergers,Acquisitions,Alliances Case Study;Nike; Apple; Nike and iPod; Sport kit; Footwear; Steve Jobs; Mark Parker; Receiver; Nike+Experience; Nike Plus; iPod; iTune; Basic workout; iPod Nano; Tour de France