Has Nike’s Brand Diversification Hit A Wall?

There is a lot of chatter that Nike has exited the hardware game right now due to the soon to be launched iWatch and Samsung’s Gear Fit, piling into the market. Was the decision assisted by the fact that Apple’s Tim Cook sits on the Nike’s board?

What this does say is that Nike does not believe it has the skills nor the brand stretch to tackle the power of these new entrants. It also emphasizes that brands need to focus on their core skills and avoid “bad profits” – business that’s making a profit, but distracts the focus and energy of the main business.