Adidas and Nike Comparison - Report Example

Nike

Its primary markets are those who are into basketball and running, initially focusing on the U.S. market before expanding to other countries. It is being sponsored by several athletes especially basketball stars which account for its huge sales and share of the market. It dominates the advertising and marketing arena of sportswear and sports equipment business. Nike products are designed, developed, and marketed in the U.S., but production is outsourced to Asian countries such as Taiwan, Korea, China, and Indonesia. Umbro, Converse, and Cole Haan are among the brands under its name.

Adidas is not only the second leading manufacturer of sportswear in the world but also the first leading manufacturer in Europe. It was founded in 1984 by Adolf Dassler and is a German based company. Its logo "3 Stripes" is well known which three parallel bars is. Nike's motto is 'Just do it.' Adidas's motto is 'Impossible is Nothing.'

To understand the reputation of how brands work, we shall be covering two sports brands and discuss how their marketing strategies and the brand itself have made their name in the market. We will cover the external and internal capabilities and resources. Nike although continuous to compete in the global market as the leader regarding sportswear accessories, Adidas is growing exponentially at the speed of light and gradually coming to the verge of giving Nike a competition. On the one hand, Nike owns around Umbro, Hurley, Converse and Cole Haan. While on the other side of the coin, Adidas stands with a variety of brand extensions and acquisitions of Reebok, Taylor Made Golf Company and Rockport.

Strategies

Adidas focused their investments on the best marketing and distribution channels in different countries by critically evaluating the consumer buying behaviors and their constant struggle to secure prime shelf space. They have also embraced e-commerce to become more efficient and appeal to more customers and make purchasing much more easily accessible to them. Their supply chain is firmly communicated, and hence it helps them to customize their products which appeal to a wide range of customers. The organizational culture of Adidas group obligates employees to be innovative. This culture forces them to produce goods which are highly creative and with the use of the latest technology their products have an outstanding quality. According to (ar2001.adidas-salomon.com) using latest technologies they produce products which enhance performances of players, and they focus on sports such as football, tennis, basketball and even training shoes which are used by anyone with the ability to run. Their new technologies have led to the production of Climacool, a shoe with a ventilation system and a pump with an energy management system that guides and drives an athlete's foot through each stride.

In 2009 the Adidas Group strategically decided to move from a vertically integrated brand structure into a functional multi-rand structure for the Reebok and Adidas brands. This created a global sales function which was responsible for commercial activities and a large brands function which were responsible for the marketing of both brands. This was done to sustain their corporate-level strategy for the long run so that these divisions could emphasize and work hard in their respective departments to make the most of their efforts.

Comparison

Both the companies concentrate heavily on technology and strive to produce new and innovative products. Nike focuses on the American markets whereas Adidas focuses on the European market. Nike does not have any production plants as they only design, distribute and market their products, and hence they outsource to various countries in Asia, mainly Taiwan and Korea, which outsource their production to China, Indonesia and Vietnam. Adidas on the other hand, carry out all their production in Germany and recently has adopted Nike's outsourcing policy by outsourcing to Asian countries.

Nike sponsored nine teams whereas Adidas sponsored 12 teams during the world cup, Nike launched an Elite series for the 2010 world cup called Nike Tiempo Legend Elite which had customized shoes worn by famous football players such as Christiano Ronaldo and Cesc Fabregas. Adidas, on the other hand, launched a new collection called Adidas Adipure for the world cup 2010 which is had also customized shoes worn by famous players such as Kaka and Lionel Messi.

Conclusion

It is easy to become the market leader or the market challenger for organizations, but sustainability is the primary concern and hence organizations focus of the sustainability by coming up with strategies that will make their position sustainable in the long run. Adidas with its market strategy won the heart and interest of many in today's markets inventions.

REFERENCES

Read more: Difference between Adidas and Nike | Difference Between http://www.differencebetween.net/miscellaneous/fashion-beauty/difference-between-adidas-and-nike/#ixzz4zqetg1JP

Johnson, G., Scholes, K., and Whittington, R.(2005) Exploring Corporate Strategy: Text and Cases. Seventh Edition. Prentice Hall.

Thompson, A.A., and Strickland, A, J.(2003) Strategic Management Concept and cases. 13th edition. McGraw Hills. Website (2010) NIKE, Inc. Company Profile, [URL:http://biz.yahoo.com/ic/14/14254.html] (accessed: 29August 2010)

(2009) Adidas Group History, [URL:http://www.adidas-group.com/en/ourgroup/history/history.aspx] (accessed: 29 August 2010)