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