Evidence receipt / belief
Published · transcript-backedDavid Rosenthal: belief
25 Jul 2023 Acquired Nike
“Obviously, we're going to talk about brand here in a minute, but scale economies are written all over this company in this episode, for me. This is the clearest thing in my mind that makes this industry and Nike's position and strategy within it so different from (say) an LVMH, a Porsche, and the other.”
Source trail
Everything needed to verify it.
- Speaker
- David Rosenthal
- Attribution
- Verified speaker
- Claim type
- belief
- Recorded
- 25 Jul 2023
- Publisher
- Acquired
- Episode
- Nike
Transcript context
…Yup, which is basically, what is it that enables a business to achieve persistent differential returns and be more profitable than their closest competitor on a durable basis? David, I think there is a trap laid for us on this episode, but I'm curious. You said you had a transition to power, so I'm curious where you were going. Okay. Obviously, we're going to talk about brand here in a minute, but scale economies are written all over this company in this episode, for me. This is the clearest thing in my mind that makes this industry and Nike's position and strategy within it so different from (say) an LVMH, a Porsche, and the other. I think Porsche has scale economies. But if you look at the sneaker industry—we talked about this a minute ago—it's such a power law. There's Nike, there's Adidas that's half their size, and then the third place player is well less than half of Adidas' size. Yes. After that is Skechers, then Puma, then ASICS, Converse, Under Armour, but massively declining market share curve.…
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