Adidas : The Athletic Clothing And Footwear Industry

NIKE Inc. has been the worldwide leader of athletic shoe sales for many years now. The company’s successful brand image combined competition and enablement for the competitive, athletic user. Nike has to modify their brand to a focus of excitement and freedom and not just competitiveness. By collecting and studying an assortment of material we could be able to understand where NIKE is currently placed in the athletic shoe industry compared to their competition, and how they will be able to adjust their brand focus so it can be more effective in the future. These adjustments can help NIKE reach the more casual group of urban runners and ultimately increase the sales forecasts, while still controlling a percentage of the market for athletic shoes.

In addition, these companies are able to easily compete in the sports apparel market because the barriers to entry are low. On the other hand, many companies should think twice before entering the market. One reason is the large capital costs that are required to meet consumer demand in the market. In addition to large capital costs, some of the largest companies have gained customer loyalty based on their strong marketing skills. For example, Under Armour, Nike, Adidas, Reebok, ASICS, make new entrants into this industry much more difficult to compete with when these companies have a big share in the market already. According to Exhibit 4 in the textbook, it shows the major competitors and brands in 2013. Nonetheless, competition is intense in the sports industry market but, the high levels of product differentiation can also act as a barrier to entry for many companies because company’s need a high level of marketing to market their brand to consumers.

How strong are the competitive forces confronting Under Armour, Nike, and The Adidas Group? Do a five-forces analysis to support your answer.

As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,

Nike, Adidas and Under Armour are the largest brands in the athletic/sportswear monopolistic market. As of 2015, Nike’s revenue was $30.1 billion, the revenue of Adidas was $4.57 billion, while Under Armour’s revenue was $3.96 billion. Though all of the companies are large, Nike has a little more than 60% of the brand share dollars as compared to Adidas’ 11% and Under Armour’s 7% (Figure 1). Nike has some major strategies that

Customers of Nike, Under Armour, and Adidas currently living in the D.C. Metropolitan area were asked to complete a survey that asked 4 simple questions about these different brands. The summary asked them to vote on which brand they prefer, wear, trust, and who is currently dominant in the apparel industry. This graph was used to help back up our facts as to why Nike should be chosen to carry apparel for your store. Nike is what the people want. This was based on a poll of 84 participants in total, and 83 for the last questions.

This Capstone paper will explore the challenges inside the business arena of superpower, Nike, Inc. (Nike). Statements and references within this paper are supported with information gained through extensive research of business journals, financial reports, and various other news sources. The author will describe business and marketing challenges inherent in the world of sportswear and sporting goods manufacturing and more specifically, some that Nike has directly faced and overcome. From a very humble beginning in 1964, Nike has grown into a worldwide multi-billion-dollar company that sets the bar as leader of the sportswear and athletic shoe industry (Forbes, 2016). This paper will examine how Nike has become the industry leader and most

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

There are few actors in the microenvironment of the company. First of all, the biggest threat that faces Nike is competition from other large sporting good companies such as Adidas and Puma. The sports apparel market will retain its consistent growth, therefore, focusing on control of the market is the most important step for Nike. As the industry is made up of a few large companies with similar products it is critical that Nike is able to differentiate itself from the others with better technology, higher quality products, and a stronger sense of environmental and social responsibility. (Gary Gonzalez. 2011)

Nike’s main competitors, Adidas and Reebok, each produce a similar product mix to Nike’s, and in order to keep a competitive edge, these companies attempt to optimize its current products and showcase new innovative products. The Summer Olympics, the biggest sporting event series in the world held every four years, presents Nike and other sporting good companies with a huge opportunity to showcase new products and fuel the competition in their industry through sponsorships of teams and individual athletes. By the next Summer Olympics in 2016, sporting companies will have another chance to show off their brand, enhancing the competitive rivalry between each other. Another competitive issue that inhibits Nike’s product distribution is the large amount of substitutes in the sporting goods industry. Consumers have a wide selection of footwear, apparel, and sporting gear retailers to choose from, which requires sporting goods companies to enhance their marketing strategy to sell their products in order to survive in the industry. On the contrary, there are some economic factors that may benefit Nike’s marketing of product in the next few years. Since 2008 recession, real personal consumption expenditures have increased, indicating that consumers are willing to spend more of their money on certain items (Appendix B). This may be an opportunity for Nike to intensify marketing to consumers in order to increase sales at time where there is an increasing

Since, Nike adopted high price strategy and targeted to high-end segment, European consumers had perceived Nike as an aggressive, expensive American brand, viewing the company as arrogant. That is a real dilemma for Nike in progress to grow in Europe market. It is imperative that the company has to find a way to change consumers’ perception about the brand.

Mythology to society is just ancient past, but essentially it’s not. It’s thriving and very alive. Take a trip to your local mall and check the footwear department of any sporting store and there you’ll find the goddess. The name Nike characterizes the goddess who exemplified victory on the battlefield. In retrospect, if persons were asked the name Nike, Greek mythology is least expected to arise. The name Nike is now renowned as the most iconic brands around the globe. Though, not many people know the story it all began selling shoes from the trunk of a car. The crazy idea that emanated from Phil Knight that grew to become the global phenomenon today. This study will give insight into the creation, growth, and evolution of Nike.

Nike’s distinctive competency is in its marketing strategy, particularity in the area of consumer brand awareness and brand power. Its famous marketing campaigns and sponsorships programs were the leading factors behind its growth and success. Nike spends a substantial amount of funds on advertising because Nike believes that trough effective promotion and advertising it can reach its customers and build interest for its products. Also, it can differentiate its position in the mind of consumers and establish brand loyalty through marketing. For example, the "Just Do It” campaign, and symbols like the Nike "Swoosh’, couple with famous sports icons, serve as instant reminders of the Nike Empire.

Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.

Adidas is a major German sports apparel manufacturer, which was founded in 1948. It is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after Nike. The company's clothing and shoe designs typically feature three parallel bars. The company revenue for 2009 was listed at €10.38 billion. The market segmentation; targeting and position play an important role in this company. This essay will use the three factors to analyze this company.