Sharp Tech with Ben Thompson (Preview) Nike’s Lessons on the Internet, Why Nike on Amazon Makes Sense, Meta and Anduril and Silicon Valley History
Jun 5, 2025
Nike’s recent struggles are dissected, revealing why a partnership with Amazon might be their best bet for recovery. The discussion also dives into the historical ties between the U.S. military and Silicon Valley, shedding light on the evolving relationship. The Meta-Anduril partnership is explored, with insights into motives and implications for both tech and defense sectors. Finally, there's a look at global trade dynamics amid recent events, particularly emphasizing the significance of high-trust commerce.
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Nike's Online Streaming Analogy
- Nike made a critical mistake by abandoning a strong incumbent position to chase a Netflix-style subscription model online.
- This shift echoes similar struggles seen in the streaming industry as consumer behavior moved towards intentional app usage over passive consumption.
Nike & Amazon Power Shift
- Nike's renewed Amazon partnership helps tackle counterfeit issues and improves inventory efficiency.
- Power dynamics have shifted, with Amazon now playing a stronger role in Nike's online distribution strategy.
Match Brand to Sales Channel
- Brands must align their product type with the right online channel—luxury brands thrive by direct consumer engagement, while consumer packaged goods succeed via Amazon's throughput.
- Nike is positioned closer to consumer packaged goods, making Amazon a strategic fit despite potential dependency risks.