Just Doing It

TWoodsNike just announced that they are dumping their golf product line, which means no more manufacturing of golf balls, bags, or equipment. This has stunned the golf world, especially the tour players that are under contract for them. The three biggest names that featured the equipment and the swoosh are Michelle Wie, former World #1 Rory McIlroy, and of course, the once invincible Tiger Woods. Heck, Nike even named a building on the campus after Tiger.

The fallout has created confusion among the profile athletes in the golf world, and unfortunately has cost many Nike employees that were representative of Nike Golf, their jobs. As an avid golfer – and actually a guy that plays Nike golf balls, sports a Nike golf bag, and hits a Nike driver and hybrid – I have been more than intrigued and fascinated by this sudden and unexpected turn in events. In the process of learning more, I believe there is a lesson here for small and medium size enterprises and the CEOs and Presidents that run those companies.

The golf industry is highly competitive. Nike was much more significant when Tiger was prowling in his decade long run as arguably the greatest golfer ever. However, He now has nearly a 10-year drought in winning a major championship, hasn’t won any tournament in three years, and hasn’t played due to injury in one year. Rory McIlroy hasn’t won a major since 2014 and Michelle Wie has been under-performing for over a year. This doesn’t help the brand and even though it sounds like they make a lot of money from golf, Nike has been hitting out of hazards over the last several years.

Their decision and verbiage on the press release is telling. They state that, “We’re committed to being the undisputed leader in golf footwear and apparel…” Basically, the golf equipment game was a risk they were willing to take when they had the biggest name in golf. Without him, it began not making economic sense. So they decided to “just do” what they do best. According to Trevor Edwards, president of Nike Brand. “We will achieve this by investing in performance innovation for athletes and delivering sustainable profitable growth for Nike Golf.”

They will focus on what they do best…

I talk to my clients all the time about their value proposition. The value proposition defines what you do best and how you improve the condition of others. Be it product or service, what is the one thing that you excel in? What are you the undisputed leader in doing?

Many small and medium size businesses will take forays into new ideas, new products, and new services. Innovation is great and I endorse that type of thinking. However, it better still be around your value proposition. It should still feed into what you do best. If it doesn’t, you may find that you lose a lot of time and money.

If you want to profitably grow your business, determine what you do and do more of it in a myriad of ways. Dump products or services that no longer work or showcase your value. Nike realized that the run was over. It truly ended being artificial because it was fueled by one profoundly valuable asset in Woods. Without him, they are just another “name” in the game, and well down the list. In their eyes, their value is in clothing and footwear.

Take a few minutes and look at your business. Are all your efforts focused on your value proposition and being an undisputed leader in your field or industry? Or, are you still dabbling in things that distract, confuse, or lose money? It’s better that you stay in your own fairway by improving your strengths and building a profitable and fun business.

© 2016 Toro Consulting, Inc. All Rights Reserved

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