Industry Impact
To greater analyse the true effects that the Speedo LZR Racer had as one of the most innovative sports products ever made, our approach addresses the industry impact the product had.
“The existence of oligopolies changes the nature of a free market…”
(Hannaford, 2007, p.2)
(Hannaford, 2007, p.2)
It has been argued that “Few innovations in the history of sportswear have had the market impact that Speedo’s LZR Racer® swimsuit has achieved in 2008” (Speedo, 2009). Many have also claimed the LZR Racer altered the way the swimming industry marketed their products; Speedo the most media dominant brands throughout the 2008 Beijing Olympics.
As soon as the Speedo LZR Racer was launched it became clear that the product was what professionals/elite swimmers needed and wanted to win gold. Although Speedo sponsored a number of word’s best swimmers to wear and compete in the LZR suit, others were still willing to pay the high price tag or find alternative means to be sponsored by them.
Mark Schubert, the coach for US swim team, allegedly pressurized his swimmers to use the LZR Racer, making 2500-3000 suits available to swimmers for free. Surprisingly, Nike, the company who was the general sponsor of the US Olympic team allowed this endorsement to go ahead. Despite having their own racing suits in product, Nike still allowed American swimmers to openly decide which brand they wanted to compete in Beijing. (ESPN, 2008)
“...elite swimmers wanting to be seen in nothing else but the LZR Racer, which of course posed a problem for those swimmers sponsored by other top swimwear brands.” (Tucker, 2008 cited in Sports Trader, 2008)
As soon as the Speedo LZR Racer was launched it became clear that the product was what professionals/elite swimmers needed and wanted to win gold. Although Speedo sponsored a number of word’s best swimmers to wear and compete in the LZR suit, others were still willing to pay the high price tag or find alternative means to be sponsored by them.
Mark Schubert, the coach for US swim team, allegedly pressurized his swimmers to use the LZR Racer, making 2500-3000 suits available to swimmers for free. Surprisingly, Nike, the company who was the general sponsor of the US Olympic team allowed this endorsement to go ahead. Despite having their own racing suits in product, Nike still allowed American swimmers to openly decide which brand they wanted to compete in Beijing. (ESPN, 2008)
“...elite swimmers wanting to be seen in nothing else but the LZR Racer, which of course posed a problem for those swimmers sponsored by other top swimwear brands.” (Tucker, 2008 cited in Sports Trader, 2008)
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Other cases which highlight just how disruptive the LZR racer suit was in the swimwear industry can be found with Olympic athlete Kosuke Kitajima. Alongside his relay team mates, Kitajima accepted the financial burden of cancelling his sponsorship with Mizuno, switching to their main rivals Speedo. Another example can be seen in Italian swimmer Filippo Magnini. Despite being sponsored by Arena, the athlete openly acknowledged Speedo's incredible innovation stating; "The [Speedo] helps a lot," (ESPN, 2008). Eventually the athlete left Arena, choosing Speedo for its obvious advantages.
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The End of Nike in Competitive Swimwear
Following the disruption that Speedo caused in the swimming industry, Nike was the first major competitor to bow down in defeat, announcing in 2008 that were terminating all Olympic swimming sponsorship; "Nike's biggest disappointment just might have been the fact that it couldn't make a competitive swimsuit to compare to the Speedo Fastskin LZR Racer" (Rovell, 2008).
Again the emergence of Speedo as the provider of the 'dominant design' is clearly highlighted. Speedo's product, marketing ability and overall presence provided them with such dominance that loyalty to other brands was completely removed. Speedo obtained a competitive advantage which made them purely untouchable. |