{"id":7376,"date":"2015-12-09T23:21:16","date_gmt":"2015-12-10T04:21:16","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/speedo-inspiring-everyone-to-dive-in\/"},"modified":"2015-12-09T23:28:27","modified_gmt":"2015-12-10T04:28:27","slug":"speedo-inspiring-everyone-to-dive-in","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/speedo-inspiring-everyone-to-dive-in\/","title":{"rendered":"Speedo: Inspiring Everyone to Dive In"},"content":{"rendered":"<p><em>Context<\/em><\/p>\n<p>Founded in 1928, Speedo is the global leading swimwear brand that has succeeded and thrived through changing market landscapes. The reason behind the Company\u2019s longevity is its ability to adapt to its surrounding environment through maintaining a close alignment of its business and operating models. Today, Speedo\u2019s business model is being the swimwear for all while continuing to build on its unique angle as the \u201cfastest\u201d and most technologically advanced swimsuit for competition. There are two key areas where Speedo\u2019s operating and business models align to create value for its customers.<\/p>\n<p>&nbsp;<\/p>\n<p><em>Innovation<\/em><\/p>\n<p>Central to Speedo\u2019s business model is innovation and constructing the most efficient swimsuit for the elite swimmer. Innovation was actually what brought Speedo to the public spotlight\u00a0in 1928 when Speedo created the Racerback suit (the world\u2019s first non-wool swimsuit). Since then, Speedo has consistently produced cutting-edge suits, usually right before the summer Olympic Games when swimming gets much of its publicity. For example, in 2000 Speedo launched the Fastskin\u00ae swimsuit inspired by shark skin and today\u2019s latest suit, the LZR Racer X, is considered to be the \u201cfastest\u201d with compression and water repellency features.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=AkxkPceKP4Y\">https:\/\/www.youtube.com\/watch?v=AkxkPceKP4Y<\/a><\/p>\n<p>Supporting and integral to the business model is Speedo\u2019s research &amp; development facility, particularly the Aqualab. Its operating model is such that not only does Speedo bring NASA specialists to work on understanding the aerodynamics of body movement, but it also brings Olympic swimming champions for user insights. For instance, the aforementioned LZR Racer X is designed with lightweight fabric that enhances water repellency while incorporating a compression system for drag-reducing streamlined form. The intellectual property developed from Aqualab, as well as the extensive and diversity of resources Speedo funnels into research, operationally supports and creates the competitive advantage of creating the fastest suit and reinforces its business model. None of its competitors, whether it\u2019s swimming-specific TYR or global athletics brand Nike, invest as much in innovation as Speedo does.<\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Aqualab.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7119\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Aqualab-300x195.jpg\" alt=\"Aqualab\" width=\"300\" height=\"195\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Aqualab-300x195.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Aqualab-600x390.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Aqualab.jpg 770w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><em>Swimwear for All<\/em><\/p>\n<p>In addition to being the innovators of swimming, Speedo has an overarching mission to be the swimwear of choice for all, from the recreational swimmer to the Olympic champion. Total addressable market of global swimwear\/beachwear is expected to reach $20 billion by 2020 and to capture this, Speedo has broadened its business model recently to target the non-competitive consumers. It hired brand chief Jim Gerson (formerly at The North Face) in 2010 to tackle the issue of brand expansion to the broader market. Gerson faced the similar issued at North Face in the early 2000s where they converted from a mountaineering brand to an aspirational brand. Post Gerson joining in 2010, Speedo focused on expanding the customer base to non-competitive athletes, a lot of which stemmed from the partnerships it formed (see final section).<\/p>\n<p>From an operational perspective, Speedo became the first swimwear company to launch a digital platform to embrace the broader swimming community. Pace Club, which rolled out in 2011 (latest version called Speedo Fit), expanded swimming\u2019s relatively \u201cindividualistic\u201d sport to an interactive community-based environment through having users share their training programs, view technique tips from Speedo professional swimmers, and engage through social media. This rollout is consistent with Speedo\u2019s shift to increase its emphasis in its aspirational lifestyle product line. Speedo now categorizes its swimwear by performance, fitness and recreational, all having equal importance on its website.<\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Speedo-Tech.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7132\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Speedo-Tech-300x263.png\" alt=\"Speedo Tech\" width=\"300\" height=\"263\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Speedo-Tech-300x263.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Speedo-Tech.png 565w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a> <a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Child.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7137\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Child-206x300.jpg\" alt=\"Child\" width=\"206\" height=\"300\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Child-206x300.jpg 206w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Child.jpg 244w\" sizes=\"auto, (max-width: 206px) 100vw, 206px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><em>Combining Innovation and Broad Community<\/em><\/p>\n<p>What is unique about Speedo is its success in integrating both goals of performance and expanding to the broader community. While on the surface these may seem to be contradictory, Speedo has leveraged its elite swimmers (Speedo\u2019s core marketing is through athlete sponsorship) to integrate professional swimming to the community through broader social causes. An example of this is Speedo\u2019s \u201cArt of the Cap\u201d program where Olympians and artists collaborated to create swim caps depicting stories of various community-wide causes. For example, Olympic gold medalist Dana Vollmer shared her story of overcoming life-threatening heart condition and her integrated heart cap links closely to the Simon\u2019s Fund to raise awareness of cardiac arrest in children. This combination has led to high performance, as more gold medals have been won in a Speedo than in any other brand in every Olympics (innovation indicator) and record-high revenues was fueled by the non-performance swimwear segment in 2014 (community-reach indicator).<\/p>\n<p><a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Cap.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7143\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Cap-300x155.jpg\" alt=\"Cap\" width=\"300\" height=\"155\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Cap-300x155.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Cap-600x311.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Cap.jpg 724w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a> <a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Simon-Fund.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7145\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/Simon-Fund.png\" alt=\"Simon Fund\" width=\"170\" height=\"240\" \/><\/a> <a href=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/olympic_rings_on_white_206913.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-7149\" src=\"https:\/\/i4tsk12in2b2y7uts14c528g-wpengine.netdna-ssl.com\/wp-content\/uploads\/sites\/4\/2015\/12\/olympic_rings_on_white_206913-300x212.jpg\" alt=\"olympic_rings_on_white_206913\" width=\"300\" height=\"212\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/olympic_rings_on_white_206913-300x212.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/olympic_rings_on_white_206913.jpg 425w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><em>Conclusion<\/em><\/p>\n<p>Overall, Speedo\u2019s 87-year successful history is due to its close business and operating model alignment that drive market leading performance. It has maintained its key ingredients behind creating cutting-edge swimsuits while embracing each and every swimmer.<\/p>\n<p>&nbsp;<\/p>\n<p>References:<\/p>\n<p>&nbsp;<\/p>\n<ol>\n<li>Morrison, Jim. How Speedo Created a Record-Breaking Swimsuit. <a href=\"http:\/\/www.scientificamerican.com\/article\/how-speedo-created-swimsuit\/\">http:\/\/www.scientificamerican.com\/article\/how-speedo-created-swimsuit\/<\/a><\/li>\n<li>Pentland website; <a href=\"http:\/\/www.pentland.com\/\">http:\/\/www.pentland.com<\/a><\/li>\n<li>Philip Watts Design, Aqualab. <a href=\"http:\/\/www.philipwattsdesign.com\/bespoke\/speedo-hq-nottingham\">http:\/\/www.philipwattsdesign.com\/bespoke\/speedo-hq-nottingham<\/a><\/li>\n<li>PVH website; <a href=\"http:\/\/www.pvh.com\/\">http:\/\/www.pvh.com<\/a><\/li>\n<li>S&amp;P Capital IQ; Speedo, Pentland, PVH, TYR, and Nike. <a href=\"https:\/\/www.capitaliq.com\/\">https:\/\/www.capitaliq.com<\/a><\/li>\n<li>Speedo record sales help owner to big revenue rise. <em>Herald Scotland, <\/em><a href=\"http:\/\/www.heraldscotland.com\/business\/13166892.Speedo_record_sales_help_owner_to_big_revenue_rise\/\"><em>http:\/\/www.heraldscotland.com\/business\/13166892.Speedo_record_sales_help_owner_to_big_revenue_rise\/<\/em><\/a><\/li>\n<li>Speedo website; <a href=\"http:\/\/www.speedo.com\/\">http:\/\/www.speedo.com<\/a><\/li>\n<li>Swimming World. <a href=\"http:\/\/www.swimmingworldmagazine.com\/\">http:\/\/www.swimmingworldmagazine.com<\/a><\/li>\n<li>TYR website; <a href=\"http:\/\/www.tyr.com\/\">http:\/\/www.tyr.com\/<\/a><\/li>\n<li>Zmuda, Natalie. Speedo Wades Into the Social-Media Pool. <a href=\"http:\/\/adage.com\/article\/news\/speedo-wades-social-media-pool\/228900\/\">http:\/\/adage.com\/article\/news\/speedo-wades-social-media-pool\/228900\/<\/a><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Innovation and Community Swimming for All<\/p>\n","protected":false},"author":1052,"featured_media":7456,"comment_status":"open","ping_status":"closed","template":"","categories":[289,166,345,37,1166,1165],"class_list":["post-7376","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-alignment","category-athletes","category-community","category-innovation","category-performance","category-speedo"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Speedo: Inspiring Everyone to Dive In - 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