Nike vs. AdidasTeam
Robin CastilloSirrea HayesBeth NicholsOfe Walker
Mission Statements
NikeTo bring inspiration and innovation to
every athlete* in the world
* If you have a body, you are an athlete
AdidasTo be the leading sports brand in the
world
*Impossible is Nothinghttp://www.youtube.com/watch?v=EPO20PkSztE
History
Nike1964: Bowerman/Knight1970: Waffle Iron1972: Swoosh1980’s: Sport Celebrity Endorsement & Growth
Adidas1920’s-30’s: Dassler1954: Soccer1960: 3-Stripe 1984: Summer Olympics & Mainstream popularity
Key LeadersNike
Chairman of the Board: Phil KnightCEO Nike: Mark ParkerCFO: Don BlairPresident Nike Brand: Charlie DensonGlobal Operations: Gary M. DeStefano
AdidasCEO Adidas-group: Herbert Hainer Finance Adidas-group: Robin J. Stalker CEO Adidas brand: Erich Stamminger Global Operations Adidas-group: Glenn S. Bennett
Industry / Products
NikeAthletic ShoesApparelSports EquipmentAccessories
AdidasFootwearSportswearSports Equipment
Business Structure
NikeNIKEFive Subsidiaries– Cole Haan– Converse– Hurley International– NIKE Golf– Umbro
AdidasAdidas Two Subsidiaries– Reebok– TaylorMade
Market SegmentsNike
Running– Footwear – ClothingGolf– Footwear– ClothingSoccer– Footwear– Clothing
AdidasSport Performance– Footwear
Sport Style– Clothing
Competitive Strategy
NikePremium Price StrategySponsorship AgreementsNo Manufacturing
AdidasPremium Price StrategySponsorship Agreement
Core Competencies
NikeOutsourcing
AdidasImplementation of Joint Operating Model in Europe
Distinctive Competencies
NikeAdidas
Competitive Advantages
NikeAdidas
Industry Trends / Key Issues
Nike / AdidasSales are FlatLow Consumer Confidence in the Economy
Global Issues
Nike2008: Trade Deficit with China
Adidas2008: Global Sports Partnerships2009: International Day of Peace2009: DJSI Winner
International Ethical Issues
Nike / AdidasChina: Child Labor
Sales Strategy
NikeNike.comUnited States: 25,000 RetailersInternational: Distributors, Licensees, and Subsidiaries
Adidas
Key Customers
NikeAdidas
Key Competitors
NikeAdidasNew Balance Athletic Shoe, IncPUMA AG Rudolf Dassler Sport
AdidasNikeAmer Sports CorpCallaway Golf Company
SWOT- Strengths
NikeSwoosh LogoInnovative Technology FocusLIVESTRONG CampaignNiketownConservative Finances
Adidas3-Stripe LogoPurchased Reebok to gain presence in North AmericaLeader in Corporate Responsibility & SustainabilityBuyer Loyalty
SWOT- Weaknesses
NikeMale Dominate Executive BoardLabor Costs
AdidasMale Dominate Executive Board
SWOT- Opportunities
NikeGrowth in Men’s FootwearRecent Growth in US Market Share
AdidasGrow Reebok menContinue Partnership Development
SWOT- Threats
NikeUnder ArmourEconomy
AdidasEconomyUS Market share shrank 2009
Porter’s – Product Substitution
NikeAdidas
Porter’s – Rivalry
NikeAdidas
Porter’s – Buyer Power
NikeAdidas
Porter’s – Supplier Power
Intense competition among suppliers keeps manufacturing costs low
Porter’s – Threat of Entry
Nike / AdidasUnder Armour
Financial Analysis
NikeAdidas
Ratio: 2
NikeAdidas
Ratio: 3
NikeAdidas
Ratio 4
NikeAdidas
Acquisitions
Nike1995: Bauer2002: Hurley International2003: Converse2004: Starter Brands2008: Umbro
Adidas2005: Reebok
Divestitures
Nike2007: Starter to Iconix Brand Group2008: Bauer Hockey to Kohlberg & Co
Adidas
Current Events
NikeAdidas2009: Cirque de Soleil2012: London Olympic and Paralympics Partnership
Sustainability
NikeAdidas
Strategic Direction / Changes
Nike2007: LIVESTRONG Challengehttp://www.youtube.com/watch?v=RDfCTJQTpXs
2009: Profitable Stock Split 2 for 1
Adidas2008: Beijing Olympic Partnership2009: Business Realignment2009: Sold $15.7 million shares of stock2009: Cirque du Soleil Partnership
Recommendations
NikeAdidas
M
NikeAdidas
BibliographyAdidas – Impossible is Nothing. (2006, May 10).
YouTube video posted by sktube. Retrieved November 27, 2009 from http://www.youtube.com/watch?v=EPO20PkSztE
Fredeen, B. (2000, Feb. 1). Knowing Nike’s Customers. Retrieved November 18, 2009, from Fool.com.
Footwear Industry in USA. (2008). Retrieved November 22, 2009, from http://www.infomat.com
BibliographyHoover’s Inc. (2009). Company Discriptions.
Retrieved November 22, 2009 from http://www.hoovers.com
LIVESTRONG Challenge 2007 Video. (2007, June 1). YouTube video posted by livestrongarmy. Retrieved November 27, 2009, from http://www.youtube.com/watch?v=RDfCTJQTpXs
Mehta, S. (2009, March 5). Fortune. Under Armour reboots. Retrieved November 28, 2009, from
http://www.money.cnn.com/2009/01/20/technology/mehta_underarmour.fortune/index.htm?postversion=2009012613
Bibliography40 under 40. (2009, October 22) Fortune, Retrieved
November 28, 2009, from http://money.cnn.com/galleries/2009/fortune/0901.40_under_40.fortune/index.html
Pienciak, M. (2009, September 2009). The Motley Fool. Nike’s still got no bounce. Retrieved November 28, 2009, from http://www.fool.com/investing/general/2009/09/30/nikes-still-got-no-bounce.aspx?source=isesitlnk0000001@mtt=1.00
BibliographyConerly, B. (2008, February 5). Seeking Alpha
website. Nike strategy: divide and conquer. Retrieved October 19, 2009, from http://seekingalpha.com/article/63099-nike-strategy-divide-and-conquer
Burke, M. (2008, January 17). Forbes Magazine. On the run. Retrieved October 19, 2009, from http://www.forbes.com/forbes/2008/0211/082.html