Comparison of Nike and Adidas

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Executive summary
This report provides an analysis and evaluation of two of the biggest companies Nike and Adidas in athletic footwear industry. One of the most popular products is selected from each of the company to investigate. The report is conducted by analysing detail into the athletic footwear industry and both companies’ background, macro and micro environment forces, market segmentation, target markets, targeting strategies and position strategies. Many secondary researches which will be in the appendices to are done to finish the report. The results show that Adidas and Nike have similar market segmentations and targeting market. Their targeting strategy and positioning strategy are also similar, although the major parts of their micro and macro environmental factors are different. Although both Nike and Adidas have their important role in the athletic footwear market and they both hold great number of market share in the industry, there are still many potential consumer groups they have not developed in the developing countries as both of them aim to customers who have higher income level and brand loyalty. The finding of this report is still limited as most of the researches are secondary or out of date. The global economy changes rapidly in the modern society. Also some specific information is not open to the public, hence the analysis that can be done is very limited

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Table of Contents
Introduction…………………………………………………………………………..3 Industry background……………………………………………………………...…4 The Company background…………………………………………………………..5 Macroenvironmental forces……………………………………………………….…6 Micro environmental forces…………………………………………………………9 SWOT analysis……………………………………………………………………...11 Market segmentation…………………………………………………………….…13 Target markets……………………………………………………………………...14 Targeting strategy…………………………………………………………………..15 Positioning strategy…………………………………………………………………17 Recommendations…………………………………………………………………..18 Appendices…………………………………………………………………………..19 Bibliography……………………………………………………………………...…24

Introduction
The purpose of this report is to investigate two big companies in the athletic footwear industry. Two of their major products are chosen from each of the company to analyse their marketing strategies and compare them to the actual marketing theories. Nike and Adidas are chosen as they are two well-known to the public in the sportswear industry and each of their products Nike Air Force one and Adidas Superstar have their significant roles in the sportswear market with their unique reputation and marketing strategies. The report will focus on the analysis of the sportswear industry and both companies and their products’ background information, macro and micro environment forces, market segmentation, target markets, targeting strategies and position strategies. SWOT analyses will be done on both of the companies for both companies and their environments.

Nike was originally created in 1972. With various strategies and growth, today Nike operates in more than 160 countries around the globe. (Nike.inc, n.d.) Nike Air Force 1 is one of the most successful products from Nike. Air Force 1, released in 1982, was the first basketball shoe to include Nike's Air technology. The sneaker's success came largely off the court, as a fashion accessory embraced first by the hip-hop community and now by just about everybody. (Schierlitz, 2012)

Adidas is also a widely famous company in the athletic footwear industry. Adidas was originally started at 1920’s, Adolph, or Adi, Dassler had a dream to make the best sports shoes possible. (Herwood, 2011) The business worked out extremely successful. Adidas with 22.9% in 2008 dominate the global athletic footwear market. (Newhunter 2010, 2010) Adidas superstar is one of the most successful products from Adidas. In 1969, Adidas decided to launch a low-top version of their top selling Pro Model shoe. Since then, these shoes have taken on a life of their own and was quickly...
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