Nike Strategic Evaluation

Topics: United States, Athletic shoe, Sportswear brands Pages: 1 (318 words) Published: January 29, 2013
As a leader of the sports and athletic apparel industry, Nike competes directly with Adidas, Under Armor, Puma, and New Balance for market share and position. Nike is currently the top producer in this industry. Currently, Nike holds 53.94% of the market. Nike currently owns close to 700 retail stores, and they sell their products to more than 23,000 distributors worldwide. Nike aims to generate $28 to $38 billion in revenue by 2015 through their continued sales of their most popular sneakers, apparel, sporting accessories, and equipment. Most of Nike’s sales come from their footwear sales. In 2012, Nike brand footwear was responsible for $13 billion in revenue alone. Adidas has been the main competitor for Nike. In August 2005, Adidas would announce that it had made a deal to acquire its rive Reebok for $3.8 billion. This acquisition of its rival garnered a stronger role in the sports industry. This merger was a big success that has brought Adidas a significant sales growth over the past couple of years. The merger of these two large companies supplemented each other in order to fight for market share. Reebok held a strong presence in the U.S. market, and Adidas is known worldwide. New Balance is also nipping at the heels of Nike in the fight for more market share and revenue. New Balance currently operates five plants in the United States. New Balance boasts their quality of shoes since they are manufactured in the United States. They believe that being located in the U.S. is a competitive advantage, and gives the customer a good feeling by having factories close by. Nike tries to focus on innovation, and the advancement of technology. These are the things the Nike uses to keep brand loyalty. Nike is more accepted in the U.S. market, whereas Adidas has a strong base in German, and European markets.
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