Analysed By Shailesh Pawar ACL-II Business Nike vs. Adidas Analysed By Shailesh Pawar ACL-II Business

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 itself I'm Possible. The adidas brand attitutde:

History Nike Adidas 1964: Bowerman/Knight 1920’s-30’s: Dassler 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)

Key Leaders Adidas Nike Finance Head Of Adidas-group: Robin J. Stalker CEO Of Adidas Brand: Erich Stamminger Global Operations Head Of Adidas-group: CEO Of Adidas-group: Herbert Hainer Glenn S. Bennett Nike Chairman of the Board: Phil Knight CEO Nike: Mark Parker CFO: Don Blair President Nike Brand: Charlie Denson Global Operations: Gary M. DeStefano

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

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.

Competitive SALES 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

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

FAMOUS OUTLATES, PUNE Nike AUNDH F.C. ROAD J.M.ROAD Adidas AUNDH

Competitive Advantages Overall Ratings (10 Ratings) Overall Ratings (23 Ratings) Competitive Advantages Nike Adidas

Consumers Nike AGE GROUP 03-15 YR’S 15-35 YR’S 35-60 YR’S 60-80 YR’S MIDDLE CLASS PREMIUM CLASS AGE GROUP 03-15 YR’S 15-35 YR’S 35-60 YR’S 60-80 YR’S Adidas MIDDLE CLASS PREMIUM CLASS AGE GROUP 03-15 YR’S 15-35 YR’S 35-60 YR’S 60-80 YR’S

PRICE COMPARISON Nike Adidas Rs 1500 - Rs 2599 Rs 1300 - Rs 2599

Tough 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.***

SWOT- Analysis(Strengths) Adidas 3-Stripe Logo Purchased Reebok to gain presence in North America Leader in Corporate Nike Swoosh Logo Innovative Technology Focus LIVESTRONG Campaign 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-

Weaknesses Nike Male Dominate Executive Board Labor Costs Adidas

Opportunities Nike Growth in Men’s Footwear Recent Growth in US Market Share Adidas Grow Reebok men Continue Partnership Development

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 2008 -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%)

Buyer Power In Pune Nike Adidas Rs 1300 - Rs 2599 Rs 2600 - Rs 3599

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

Recommendations Adidas BEST Nike BETTER

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