The undisputed giants of the sportswear and sports equipment industries, consumers can generally expect quality products from the two brands.
Nabil Iqbal Executive Summary: The purpose of this assignment is to learn about strategy and strategic management by comparing the strategies of two companies from the same industry.
The strategies of Nike and Adidas have been compared from the textile industry. Nike and Adidas both specialize Nike and adidas compare and contrast footwear, apparel and accessories and their competition is intense as Nike is the market leader and Adidas is the market challenger.
The topics in this assignment cover critical incidents of both Nike and Adidas that occurred in the past and the comparison between both their strategies as well their future plans.
This assignment shows us the influence the strategy has on the success or failure of companies and how companies craft sustainable strategies that help them to retain their position in the market.
Table of Contents Page 1. Johnson, Scholes and Whittingtonp. They focused on this strategy and started their website in as an online book retailer. They slowly expanded their products and are currently an online shopping website with the largest product supplies online earning revenues in billions.
Hence we can see how important strategy is for the success of an organisation.
There are three levels of strategy, which are corporate level, business level and functional level strategy. Strickland and Thompsonpp. The business level strategy provides guidelines on how to excel competitors or survive in a particular market and the functional strategy is the contribution made by the resources, people and processes to the business and corporate level strategies.
Companies strive with their strategies in order to become the leader in their specific industry or market. Nike and Adidas are the top two competitors in the footwear, apparel and accessories segment of the textile industry. The focus of the latter part of this report is on how these competitors compete with each other using their strategies.
In order to fully understand about strategy, it is mandatory to know about the five generic competitive strategies. The five generic strategies according to Strickland and Thompsonp. It is based in Beaverton,Oregon and has subsidiaries such as Cole Haan, which designs, markets and distributes luxury items such as shoes, handbags and coats.
Their subsidiaries also include Converse,Inc. The revenue of Nike,Inc. Starting with athletic footwear such as running shoes and soccer shoes, they currently manufacture a wide range of products such as bags, watches, shirts and accessories.
They are the second largest sportswear manufacturer, behind Nike,Inc. According to Dermesropian, Drage, Grigaite and Lopez ,p. They sponsored many famous athletes such as Michael Jordan, a famous basketball player and Tiger Woods, an excellent young golf player.
During Nike acquired Canstar sports which included the hockey equipment maker Bauer and opened its first Niketown store. In early Nike acquired a license to put its logo on NFL uniforms which resulted in strong marketing.
Some incidents harmed Nike during as they had to cut 1, jobs due to the fall of sales in Asia and the demand of athletic shoes fell in Nike wanted to diversify and in the year they shifted a little towards the technological and electronic sector and introduced athletic electronics, which included MP3 players, heart monitors, and two-way radios.
They acquired Hurley International, a distributor of action sports apparels and lost their license to put their logos on NFL uniforms to Reebok in In they acquired one of their competitors called Converse but it continued to operate independently in order to sustain the brands popular name.
Adidas also faced various occurrences in order to attain the title of the second largest athletic footwear sportswear and accessories manufacturer. One of the biggest successes of Adidas was in when it was the most common shoe brand worn at the Olympic Games held in Helsinki.
They made the first track shoes with removable spikes. Emil Zatopek, in Adidas shoes, won three gold medals in one week creating a huge impact on the image of the brand. In Adidas came up a shoe with exchangeable spikes which became very popular among the high jumpers.
Adidas began production of balls in and in their football was the official ball of the football world cup. In Adidas introduced Azteca, the first synthetic world cup matchball in the world. However, in Adidas took over Sports Inc. Robert Louis Dreyfus had become the new president of Adidas and he downsized the German staff and went subcontracting to China.Nike has invested many millions of dollars in catching up to the one category where Adidas had a big lead on them: football (soccer) boots, and Nike football boots are now easily equal or superior to Adidas football boots in any respect (depending, of course.
upon individual preferences for fit and comfort). Porter’s five forces for Adidas 1. Analysis framework and market structure * High barrier to enter this field.
The sports shoes industry of the USA are made by those brand company, these brand company will have advantage with advertisement, import, sales network and product development. Table of Contents Page Introduction 1 Literature review 1 Backgrounds of Nike and Adidas 2 Company overview of Nike 2 Company overview of Adidas 2 Critical Incidents that occurred in the past 3 Critical incidents that affected Nike 3 Critical incidents that affected Adidas 5 Comparison of the strategies of.
Jul 18, · Nike, Adidas, Reebok and Puma are all great names in the Sports Industry. These Brands puts insane amount of investments in making their products. The services provided by the brands are very different and unique in their own ways. Nike and Adidas Compare and contrast essay Both Nike and Adidas are sportswear companies whose products throughout many parts of the world are very popular and have been the top two leading sport companies in the sport industry.
The purpose of this essay is to compare and contrast Nike and Adidas companies in terms of headquarters, market focus, sponsorships, marketing and advertising, price and product. Nike is an international U. We will write a custom essay sample on Nike and Adidas Compare and Contrast Essay specifically for you.