1. Team Robin Castillo Sirrea Hayes Beth Nichols Ofe Walker
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
The adidas brand attitutde:

3. History Nike 1964: Bowerman/Knight 1970: Waffle Iron 1972: Swoosh
1980’s: Sport Celebrity Endorsement & Growth
Adidas
1920’s-30’s: Dassler
1954: Soccer
1960: 3-Stripe
1984: Summer Olympics & Mainstream popularity
Nike
1964:
1970: revolutionized the running shoe using a waffle iron to make the shoe tread
1972:Swoosh-Caroline Davidson-Artist who designed the Logo
1980’s: Steve Prefontaine-long distance runner, Michael Jordan-Nike Air, Bo Jackson-cross trainer, Tiger Woods-Golf
1989-Nike became Industry leader
Adidas
Dasler-started making shoes-11 sports and 30 styles of shoes by mid 1930;s
1954: German Soccer team won Soccer world cup
1960: expanded athletic balls and clothing: Brand Recognition with 3 stripe design
1984: 89% of the teams wore adidas shoes-expanded into equipment-Celebrity endorsements such as Modonna (Not sports figure)

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
According to Market Research firm NPD Group-The Running shoe market in America is $ 5 Billion annually

6. Business Structure Nike NIKE Five Subsidiaries Adidas Two Subsidiaries
Cole Haan
Converse
Hurley International
NIKE Golf
Umbro
Adidas
Two Subsidiaries
Reebok
TaylorMade
Nike
Nike brands – football, running, training, basketball, and originals (two divisions that reflect two distinct market segments – sport performance & sport style)
Cole Haan – dress and casual footwear, apparel, accessories for men and women
Convers – premium lifestyle men’s and women’s footwear and apparel
Hurley International – action sports apparel for surfing, skateboarding, snowboarding and youth lifestyle apparel and footwear
NIKE Golf – golf equipment, apparel, balls, footwear, bags, and accessories
Umbro – designs, distributes, and licenses athletic and casual footwear, apparel, and equipment for soccer (includes exclusive endorsements and distribution rights for playing kit, apparel and equipment, including playing and training kits for England’s National Team
Adidas
Adidas-2 div sports performance (football, running, training and bskball) Sport Style: Street fashion to High fashion-
Reebok-global brand-own women’s fitness and challenge men’s sport category (hockey and rockport)
TaylorMade ALL GOLF: adidas golf (serious golfers equipment & shoes) and Ashworth Upscale golf sportswear pro-shops, golf resorts & specialty stores-NOT Walmart

7. Market Segments Nike Adidas Running Sport Performance Sport Style Golf
Footwear
Clothing
Golf
Soccer
Adidas
Sport Performance
Footwear
Sport Style
Clothing
Nike: has segmented into Specific market divisions. Segment division manager is responsible for their owns segments. They can not blame the Mktg department for poor sales, because the Mktg department is under their leadership.

8. Competitive Strategy Nike Premium Price Strategy
Sponsorship Agreements
No Manufacturing
Adidas
Premium Price Strategy
Sponsorship Agreement
Adidas & Nike clearly position themselves as a top notch brand in all markets
Nike:
Celebrity athletes & college and Professional teams.
Adidas:
Niketown

9. Core Competencies Nike Outsourcing Adidas
Implementation of Joint Operating Model in Europe
Nike
By outsourcing Nike has taken out supply chain cost in manufacturing, raw materials and Labor Cost.
Adidas:
2009 restructure in Europe to eliminate regional offices

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
China accounts for 68.3% of imports – low manufacturing costs: labor costs is primary.
Overall: trend is decreasing, particularly in the US, even though revenues were over $5 billion in 2008
Weak Sales-due to consumer confidence

13. Global Issues Nike 2008: Trade Deficit with China Adidas
2008: Global Sports Partnerships
2009: International Day of Peace
2009: DJSI Winner
Nike:
68% of all shoes sold in the US are manufactured in China
Adidas and Puma the employees played football for the United Nation’s International day of Peace—an annual day of cease fire and non-violence. 1st event in 60 years.
Adidas: Dow Jones sustainability indexes (DJSI) rated industry leader in sustainability issues and corp. responsibility 7th time in a row, 10th time recognized.
Adidas: Global Partnerships: include: NBA< WNBA. Development league, Germanys football association, Russia Football Union

14. International Ethical Issues
Nike / Adidas
China: Child Labor
Critics charge that China uses Child labor in factories

15. Sales Strategy Nike Nike.com United States: 25,000 Retailers
International: Distributors, Licensees, and Subsidiaries
Adidas
Nike – sells in 160 different countries

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
Puma was started by Adi Dassler brother Rudolph originally manufactured together until the companies split.
***Nike is the largest sports and footwear apparel company in the world.***

18. SWOT- Strengths Adidas Nike 3-Stripe Logo Swoosh 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
NIKE
Innovative technology focus with Flywire and Lunarlite, reduced wt by 18% (shoe and wt experiment-demo)
Livestrong: $80million has been raised for cancer so far
1984 -(Nike Factory Stores) In 1990 created Niketown: 30,000 sq ft, interactive immersive environment: Closest store: Michigan Ave, Chicago, IL
Stores in Hollywood CA,San Franscisco CA, Las Vegas NV, New York, NY, Uk, London
Nike did some lean thinking, perhaps a 6 Sigma project and were able to hold the bottom line 2nd quarter 2009, even though revenues are down, but Nike is looking better than their competitors and are gaining market share by being conservative: Job Cuts, Inventory Mgmt and spending less on Marketing-

19. SWOT- Weaknesses Nike Male Dominate Executive Board Labor Costs Adidas

20. SWOT- Opportunities Nike Growth in Men’s 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
Kevin Plank’s CEO for Under Armour had revenues of $725 million in cornered the underwear market and now entering the athlete shoe market. Because he is entering the High Tech shoe market. (Under Armour is the only footwear and active lifestyle company whose revenues grew 2nd quarter in 2009 by 5%)

22. Porter’s – Product Substitution
Nike
Adidas

23. Porter’s – Rivalry
Nike
Adidas

24. Porter’s – Buyer Power
Nike
Adidas

25. Porter’s – Supplier Power
Intense competition among suppliers keeps manufacturing costs low
Fredeen Knowing Nike’s Customers
In 2000 supplier power was LOW
Customer’s over-forecasted sales leaving excess finished goods inventory
Also Venator, largest footwear retailer in the world, closed 150+ stores like Footlocker
If suppliers go out of business it costs companies like Nike money b/c they’ll have to pay more for rush orders or a dominant company could hurt Nike’s profit margin by demanding higher prices.

26. Porter’s – 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
To increase market share in North America Adidas acquired rival Reebok for $3.8 billion

32. Divestitures Nike 2007: Starter to Iconix Brand Group
2008: Bauer Hockey to Kohlberg & Co
Adidas
Nike:
Iconix 60 million cash purchased 2004
Bauer $200 million purchased in 1995

33. Current Events Nike Adidas 2009: Cirque de Soleil
2012: London Olympic and Paralympics Partnership
Adidas: Cirque de Soleil

34. Sustainability
Nike
Adidas

35. Strategic Direction / Changes
Nike
2007: LIVESTRONG Challenge
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
Nike
Whole website, join the team, share your story: walk, run, ride or tri with Team Livestrong (ON LINE Presence)
Adidas:
2009: New Restructure: Review key operations: wanted to be faster, effective and more flexible: Joint operating model, Adidas/Reebok eliminated one complete level of management “the regional office”, New view: Global direct to local.
2009: Sold stock to cover bond debt in order to reduce company debt leverage
2009: example: if stock $100 and now worth $300, give stockholders more shares rather than having increase the stock and everyone running and selling the stock and devaluing the company

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
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

39. Bibliography
Hoover’s Inc. (2009). Company Discriptions. Retrieved November 22, 2009 from
LIVESTRONG Challenge 2007 Video. (2007, June 1). YouTube video posted by livestrongarmy. Retrieved November 27, 2009, from
Mehta, S. (2009, March 5). Fortune. Under Armour reboots. Retrieved November 28, 2009, from

40. Bibliography
40 under 40. (2009, October 22) Fortune, Retrieved November 28, 2009, from
Pienciak, M. (2009, September 2009). The Motley Fool. Nike’s still got no bounce. Retrieved November 28, 2009, from

41. Bibliography
Conerly, B. (2008, February 5). Seeking Alpha website. Nike strategy: divide and conquer. Retrieved October 19, 2009, from
Burke, M. (2008, January 17). Forbes Magazine. On the run. Retrieved October 19, 2009, from