Speedo: Leading the Swimwear Market
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Case Code: BSTR327 Case Length: 20 Pages Period: 2002-2009 Pub Date: 2009 Teaching Note: Not Available |
Price: Rs.400 Organization: Speedo International Limited Industry: Swimwear Countries: UK; Global Themes: Market Leader Strategies, Growth Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
"Speedo has shown great willingness to experiment in more innovative ways over the past few years and its image has progressed as a cooler, more fashionable brand. It has remained true to its quality swimwear and performance heritage, so its experimentation in brave new directions hasn't compromised its core brand."
-Ben Lilley, chief executive of SMART Inc. in 2005.
"Speedo is the Kleenex of swimwear"
-Marshal Cohen, chief industry analyst of NPD Group, Inc. in 2008.
"It's not often that Nike runs from a fight. But in the battle of high-tech swimsuits, give Speedo a victory by technical knockout."
-Las Vegas Review-Journal, September 2008.
Introduction
In September 2008, US-based sportswear manufacturer Nike Inc. announced its decision to exit the elite swimwear market, saying, "We will not invest in next-generation swim innovation, which is not in line with our stated category growth strategy." Though Nike denied it and said that the decision was a "part of the company's long-term growth plan", some experts felt that the move was due to the unprecedented success of Speedo International Limited (Speedo) and its growing dominance in the elite swimwear category.
Speedo was one of the biggest brand success stories at the 2008 Beijing Olympics as athletes competing in Speedo swimsuits won 47 medals and broke 23 world records. As of 2008, Speedo was the leading player in the highly fragmented swimwear market. In the more innovation-driven US$200 million performance swimwear market, Speedo was the market leader with about 60% of the market share.
Founded in 1914, Speedo was a pioneer in sports fashion wear. Its product line had expanded over the years to include fashion and fitness swimwear, water shorts, children's swimwear, active wear, and aquatic and fitness accessories. The technology and design of its bodysuits brought Speedo to the fore of competitive swimming as more Olympic medals were won in Speedo than in any other athletic apparel brand.
The popularity of Speedo was apparent from the fact that Speedo had become a generic name, used to refer to any kind of swimwear, analysts said. While the competitive swimwear market was a small part of the overall swimwear market, it was a core focus area for Speedo. Since its inception, Speedo had been innovating in the competitive swimsuit market to manufacture suits aimed at enhancing the swimmer's performance. The British iconic brand with Australian roots was at the forefront of swimwear technology as it used the latest technology while designing its swimsuits...
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