Title of Project
Comparing the performances and marketing strategies of sport companies for Nike and Adidas.
Introduction
My area of study for this project would be more on comparing the performances for Nike and Adidas for the past 5 years. In this project I would explain the performance such as growth in profits, revenues, market share, the company employers and employees, size of the market share, steps for increasing the social performance, products performance, dividends per share, assets and the company investment.
Nike and Adidas and have been the top two leading sport companies in the sport industry over the past few decades. These two companies sell and offer wide range of products for the customers and their products offered is
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Building a relationship with customers is a challenge facing for Nike and Adidas. This is because the companies need to be followed up with new trends and styles in the industry for their customers in order for them to build their products brand and image.
Secondly, there was a case happened in China where a local Chinese domestic sports goods manufacturer company called Li Ning opened 6917 stores in mainland China by December 31,2008 making it 1241 more than the year of 2007. During the year 2008, Li Ning has published its financial report which states that due to the Beijing Olympic Games, the company made total revenues of CNY 669(million) a year on-year-increase of 53.8% compared to the year 2007. Not only that, Li Ning made an overall entry into the market of Southeast Asia. Now they have stores in Singapore, Malaysia, Indonesia and other Southeast Asia countries. This became a problem for Nike and Adidas where the two international giants see recession in their performance in China. According to the financial report of Adidas, the company’s net profit decreased by 95% to € 130 million in the first half of the year. As for the sales revenue, it decreased by 2% to € 5.03 billion. As for Nike numbers of distributors were reduced in the year 2008 due with the bad performance. Thirdly, the problem that attracted
There are many sport apparel companies that exist throughout the world such as but not limited to Nike, Reebok, Under Armour and Puma. Adidas is a prime example of a famous global company that is continuously growing. Athletes endorse in these sporting apparel companies because these companies resemble fitness and a lifestyle of sport. Adidas products can be most department stores such as Dick’s Sporting Goods, Academy Sports, and Champs. The target audience is for athletes in high performance. The adidas company is very successful in their financial status and this report will analyze the company’s overall financial and performance status.
Nike and Under Armour are two of the biggest brands in the active wear industry. Fitness goers of all ages and genders are passionate users of their sports gear and athletic clothes. Two print advertisements from Under Armour and Nike will be analyzed based on the way they use goals to captivate the viewers attention and elicit an emotion to persuade the viewer to buy their athletic wear. In a world that is quickly becoming aware of its health problems consumers are becoming more aware of fitness brands and their advertisements. People are taking an active stand in achieving their fitness aspirations and doing so with the best equipment available. Nike’s famous “Just do it” slogan has been a boost for the company’s reputation and notoriety, by setting it a part from other brands. The two advertisements from Nike and Under Armour are representations of current consumer ambitions towards fitness.
The sportswear industry is dominated by Nike and Adidas, which together hold around eighty three percent of the industry’s market share in revenue (Biddnessetc). Since both have such a high demand of customers they have created multiple distribution centers in the United States and in other countries. To stay ahead of the other industries both companies concentrate on promoting and creating new and innovative products.
Nike; one of the most well known companies across the globe today is most known for being the world’s #1 shoemaker. They design and sell shoes for a variety of sports including baseball, golf, tennis and football. Nike also sells dress and casual shoes as well as athletic apparel and equipment for almost every sport imaginable. In addition Nike also operates NIKETOWN shoe and sportswear stores, factory outlets along with Nike women shops. One of Nike’s biggest competitors on the rise is Under Armour, Inc. Under Armour; the primary maker of performance athletic underwear and apparel has risen to the top with main competitor Nike. The company has also begun to become a factor in the footwear market as
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,
At some point in one’s life, he or she gets introduced to sports which have become a staple in society around the world. For example, most countries have a national team for different sports such as soccer, volleyball, and baseball. There are many companies like Addis, Reebok, and Asics that produce sportswear for every sport imaginable. Two of the biggest sportswear companies are Nike and Under Armour. Athletes and non-athletes all over the world use Nike and Under Armour products every day.
Since being founded in 1962, Nike has grown from a small fledgling shoe retailer into a world-wide corporate giant. During its first year, sales for Nike were $8000, but as of November 30th, annual sales for Nike were over 12 billion dollars. (hoover) Although Nike already dominates the sporting world, there are many opportunities for growth. According to our research, key strategic challenges facing Nike are increased competition from Adidas with their technological shoe, the Adidas One, and a potentially fatal inability to enter a new growth market such as the extreme sports market. Our recommendations to help Nike confront these challenges consist of developing a product to remain competitive with Adidas, and also an aggressive move
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
Acting as two of the largest companies in the athletic apparel business by market share, both Nike and Under Amour, like the wearers of their products, know how to win. Whether it is the Air Mag, Nikes newest product invention or Under Armours 10 year partnership with Major League Baseball commencing in 2020, each company is taking a different approach to grow their business and become the “it” player in its industry. Although long term strategies devised by Nike CEO Mark Parker and Under Armours Kevin Plank may focus on different growth initiatives, when looked at more closely, one will find the many similarities between both firms. The grounds of comparison and contrast I will be using fall into the categories of product development, brand
By far the leading competitors in the industry are the three-headed monster of Nike, Under Armor and Adidas. With Nike reporting 13% increase in revenue in North America and the fact that North America accounts for 40% of their revenue alone, Nike is truly the giant of the industry, (“Adidas Vs…”). Though Adidas holds a huge chunk of the market share in European countries, the mainly soccer-oriented company falls behind Nike and Under Armour in the US. Recently Under Armour surpassed Adidas when “Under Armour’s U.S. sales of footwear and apparel totaled $2.6 billion in the 11 months through Jan. 3, compared with $1.6 billion for Adidas, according to data released Thursday by Sterne Agee and SportScanInfo. Both companies trailed Nike Inc.’s
After sluggish focus and growth in the 1980ies, Nike experienced strong growth in the 1990ies and cemented the position as global recognizable brand. The increased international focus created strains on the supply chain, which was consider inadequate to cater efficiently to the organization and the rapid changes consumer demands . As a consequence of the afore mentioned supply chain problem Nike faced inefficient inventory management, problems in flow of goods and poor demand
Do you think the athletic goods industry has limited potential? Or is it still a growth industry? Your opinions, and rationale, please.
Environmental: Now a days people are more conscious about environmental issue. So environmental issue can affect the Nike business. During the business Nike have to ensure that their business is eco-friendly
The report is about Nike, regarding the case study. The report elaborates on the aspects including buyer behaviour, brand image, consumer decision making, and marketing research techniques applicable to Nike. 3.0 Introduction Nike is the worlds number one sports shoe company. In the US Nike dominates 35% (source: see appendices) of the sports shoe market and its products are sold in more than 140
1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the