Planet Money

Summer School 2: Competition and the cheaper sneaker

Jul 19, 2023

Dan Wong, a strategy professor at Columbia Business School, dives into the world of competitive markets. He discusses the fascinating rise and fall of the Starbury sneakers, an attempt to offer an affordable alternative to the iconic Air Jordan. The conversation highlights the critical balance of differentiation and price in marketing. Additionally, Wong shares insights from the rivalry of bell manufacturers, illustrating how brand loyalty can be shaped even in a crowded marketplace. This exploration reveals valuable lessons for entrepreneurs in making their mark.

31:27

Creator website

Episode guests

Dan Wong

Highlights

AI Chapters

Episode notes

Differentiate: don't try to be everything for every customers

00:31

Designing Thrill: Nissan's Approach to Vehicle Thrill

01:05

Stefan Marbury's $15 Sneakers: The Price Signaling Problem

01:25

Intro

2min

Strategies for Competing in a Crowded Marketplace

2min

The Evolution of Sneaker Culture and Affordability

2min

Revolutionizing Sneakers: The Starberry Journey

8min

The Rise and Fall of an Affordable Sneaker Experiment

2min

Understanding Market Differentiation in Sneakers

2min

The Battle of Bells: A Competitive Saga

6min

Bell Rivalries: A Clash of Manufacturers and Community

2min

Resolving Rivalry: A New Era for Handbell Companies

3min

10.

Customer Loyalty and Market Competition

3min

11.

Understanding Differentiation in Business Strategy

3min

For episode 2 of Planet Money Summer School, we are talking strategy. You have your million dollar business idea, and maybe some money in your pocket to get it up and running. But now you enter into a crowded market. You have to deal with competition.

So, what can you do to make sure your product is a success? That was the conundrum facing the Starbury. It was a basketball shoe with a celebrity endorsement, that had to go up against THE basketball shoe with THE celebrity endorsement: the Air Jordan. Our first story is about the ways in which the Starbury succeeded and failed in taking on a juggernaut.

Then, we will hear a story about trying to avoid the dangers of "perfect" competition. Two companies making almost identical handbells learn that the key to their success lies in convincing customers how different they really are.

Find all episodes of Planet Money Summer School here.

The series is hosted by Robert Smith and produced by Max Freedman. Our project manager is Julia Carney. This episode was edited by Keith Romer and engineered by Robert Rodriguez. The show is fact-checked by Sierra Juarez. Planet Money's executive producer is Alex Goldmark.

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