nike vs adidas

1
Nike vs. Adidas

• Team
• Robin Castillo
• Sirrea Hayes
• Beth Nichols
• Ofe Walker

2
Mission Statements

• Nike
• To bring inspiration and innovation to every
  athlete in the world If you have a body, you
  are an athlete

• Adidas
• To be the leading sports brand in the world
• Impossible is Nothing
• http//www.youtube.com/watch?vEPO20PkSztE

3
History

• Nike
• 1964 Bowerman/Knight
• 1970 Waffle Iron
• 1972 Swoosh
• 1980s Sport Celebrity Endorsement Growth

• Adidas
• 1920s-30s Dassler
• 1954 Soccer
• 1960 3-Stripe
• 1984 Summer Olympics Mainstream popularity

4
Key Leaders

• Nike
• Chairman of the Board Phil Knight
• CEO Nike Mark Parker
• CFO Don Blair
• President Nike Brand Charlie Denson
• Global Operations Gary M. DeStefano

• Adidas
• CEO Adidas-group Herbert Hainer
• Finance Adidas-group Robin J. Stalker
• CEO Adidas brand Erich Stamminger
• Global Operations Adidas-group Glenn S. Bennett

5
Industry / Products

• Nike
• Athletic Shoes
• Apparel
• Sports Equipment
• Accessories

• Adidas
• Footwear
• Sportswear
• Sports Equipment

6
Business Structure

• Nike
• NIKE
• Five Subsidiaries
• Cole Haan
• Converse
• Hurley International
• NIKE Golf
• Umbro

• Adidas
• Adidas
• Two Subsidiaries
• Reebok
• TaylorMade

7
Market Segments

• Nike
• Running
• Footwear
• Clothing
• Golf
• Footwear
• Clothing
• Soccer
• Footwear
• Clothing

• Adidas
• Sport Performance
• Footwear
• Sport Style
• Clothing

8
Competitive Strategy

• Nike
• Premium Price Strategy
• Sponsorship Agreements
• No Manufacturing

• Adidas
• Premium Price Strategy
• Sponsorship Agreement

9
Core Competencies

• Nike
• Outsourcing

• Adidas
• Implementation of Joint Operating Model in Europe

10
Distinctive Competencies

• Nike

• Adidas

11
Competitive Advantages

• Nike

• Adidas

12
Industry Trends / Key Issues

• Nike / Adidas
• Sales are Flat
• Low Consumer Confidence in the Economy

13
Global Issues

• Nike
• 2008 Trade Deficit with China

• Adidas
• 2008 Global Sports Partnerships
• 2009 International Day of Peace
• 2009 DJSI Winner

14
International Ethical Issues

• Nike / Adidas
• China Child Labor

15
Sales Strategy

• Nike
• Nike.com
• United States 25,000 Retailers
• International Distributors, Licensees, and
  Subsidiaries

• Adidas

16
Key Customers

• Nike

• Adidas

17
Key Competitors

• Nike
• Adidas
• New Balance Athletic Shoe, Inc
• PUMA AG Rudolf Dassler Sport

• Adidas
• Nike
• Amer Sports Corp
• Callaway Golf Company

18
SWOT- Strengths

• Adidas
• 3-Stripe Logo
• Purchased Reebok to gain presence in North
  America
• Leader in Corporate Responsibility
  Sustainability
• Buyer Loyalty

• Nike
• Swoosh Logo
• Innovative Technology Focus
• LIVESTRONG Campaign
• Niketown
• Conservative Finances

19
SWOT- Weaknesses

• Nike
• Male Dominate Executive Board
• Labor Costs

• Adidas
• Male Dominate Executive Board

20
SWOT- Opportunities

• Nike
• Growth in Mens Footwear
• Recent Growth in US Market Share

• Adidas
• Grow Reebok men
• Continue Partnership Development

21
SWOT- Threats

• Nike
• Under Armour
• Economy

• Adidas
• Economy
• US Market share shrank 2009

22
Porters Product Substitution

• Nike

• Adidas

23
Porters Rivalry

• Nike

• Adidas

24
Porters Buyer Power

• Nike

• Adidas

25
Porters Supplier Power

• Intense competition among suppliers keeps
  manufacturing costs low

26
Porters Threat of Entry

• Nike / Adidas
• Under Armour

27
Financial Analysis

• Nike

• Adidas

28
Ratio 2

• Nike

• Adidas

29
Ratio 3

• Nike

• Adidas

30
Ratio 4

• Nike

• Adidas

31
Acquisitions

• Nike
• 1995 Bauer
• 2002 Hurley International
• 2003 Converse
• 2004 Starter Brands
• 2008 Umbro

• Adidas
• 2005 Reebok

32
Divestitures

• Nike
• 2007 Starter to Iconix Brand Group
• 2008 Bauer Hockey to Kohlberg Co

• Adidas

33
Current Events

• Nike

• Adidas
• 2009 Cirque de Soleil
• 2012 London Olympic and Paralympics Partnership

34
Sustainability

• Nike

• Adidas

35
Strategic Direction / Changes

• Nike
• 2007 LIVESTRONG Challenge
• http//www.youtube.com/watch?vRDfCTJQTpXs
• 2009 Profitable Stock Split 2 for 1

• Adidas
• 2008 Beijing Olympic Partnership
• 2009 Business Realignment
• 2009 Sold 15.7 million shares of stock
• 2009 Cirque du Soleil Partnership

36
Recommendations

• Nike

• Adidas

37
M

• Nike

• Adidas

38
Bibliography

• Adidas Impossible is Nothing. (2006, May 10).
  YouTube video posted by sktube. Retrieved
  November 27, 2009 from http//www.youtube.com/watc
  h?vEPO20PkSztE
• Fredeen, B. (2000, Feb. 1). Knowing Nikes
  Customers. Retrieved November 18, 2009, from
  Fool.com.
• Footwear Industry in USA. (2008). Retrieved
  November 22, 2009, from http//www.infomat.com

39
Bibliography

• Hoovers 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/wat
  ch?vRDfCTJQTpXs
• Mehta, S. (2009, March 5). Fortune. Under Armour
  reboots. Retrieved November 28, 2009, from
• http//www.money.cnn.com/2009/01/20/technology/meh
  ta_underarmour.fortune/index.htm?postversion20090
  12613

40
Bibliography

• 40 under 40. (2009, October 22) Fortune,
  Retrieved November 28, 2009, from
  http//money.cnn.com/galleries/2009/fortune/0901.4
  0_under_40.fortune/index.html
• Pienciak, M. (2009, September 2009). The Motley
  Fool. Nikes still got no bounce. Retrieved
  November 28, 2009, from http//www.fool.com/invest
  ing/general/2009/09/30/nikes-still-got-no-bounce.a
  spx?sourceisesitlnk0000001_at_mtt1.00

41
Bibliography

• Conerly, B. (2008, February 5). Seeking Alpha
  website. Nike strategy divide and conquer.
  Retrieved October 19, 2009, from
  http//seekingalpha.com/article/63099-nike-strateg
  y-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