Adidas VS Nike

Adidas Nike History- Motto – History – Motto – Name comes from Adolf "Adi" Dassler, the adi and the first three letters of his last name. Motto – Adidas' motto is "Impossible is nothing History – The name came from the Greek name for the Goddess of Victory. The company was originally named "Blue Ribbon Sports." Motto – Nike's motto is "Just do it."

Similarities and Differences Adidas Nike More focused on the European market Specializes in soccer, tennis, and athletics Recently expanded its product line to include sports equipment and clothing Recently updated its production for increased efficiency and cost effectiveness Production is outsourced to Asian countries More focused on the local market More effective advertising and marketing Recently updated the look of its line Offers custom product lines Excellent website support for custom options All production is outsourced

Adidas Nike Headquarters- Herzogenaurach, Germany Major Markets- Soccer, Tennis, Athletics Headquarters- Beaverton, OR USA Major Markets- Basketball, Cross-training, Running, Women and Children’s shoes

Adidas Nike Strategies- European market focus Adidas dominates the world market, specifically the soccer market which is considered the "world’s sport." Sponsors professional athletes and athletic teams in response to Nike’s marketing technique Strategies- Domestic market focus Shifted focus to soccer in order to gain international recognition Started athlete sponsorship frenzy Has created new look shoes to excite "bored customers" Nike Team Sports

Cont.. Tries to cut production time and cost in order to be more efficient Uses low wage labor to cut production costs Has enhanced marketing and advertising budget Has recently tried to expand its market to sports equipment and apparel Changes shoe designs frequently to stay ahead of competitors Customized products (Nike ID) Uses overseas manufacturing factories to cut production costs. Perfected its internet site with custom footwear options

Outsourcing Adidas outsourced its production but the design and development process is based in Germany. In 1993, Adidas moved its production overseas to Asia in order stay competitive in the industry Nike is not a production company; almost all shoes are outsourced; the home office in Beaverton designs, develops and markets the goods Subcontractors in Taiwan and Korea contract to other Asian countries for production

Market Focus In terms of market focus, Nike has a more varied line-up, comprised of basketball and running shoes, as well as cross-training products. Among the different brands under the Nike umbrella are Umbro, Converse and Cole Haan. Adidas for its part currently offers products that are geared primarily towards the soccer, tennis and general athletics markets. Among the companies in Adidas' roster are Reebok, Taylor Made and Rockport.

Market Strategies Nike remains firmly focused on the domestic market, although it has made inroads into the lucrative international soccer market fairly recently. The company is also considered largely responsible for the frenzy of athlete sponsorship that the industry is known for today. Adidas on the other hand has traditionally focused on the European market, although it is a formidable name in the rest of the world as well. This is mainly due to the company's affiliation with soccer, which is widely considered to be "the" International sport.

Outsourcing Policies Nike isn't really a production company per se, and almost all of its products are outsourced to various countries in Asia, particularly Taiwan and Korea, which in turn outsource production to still other Asian countries, among them China, Indonesia and Vietnam. Adidas recently adopted a similar approach, with virtually all the design and development work being handled in Germany, and production being outsourced to Asian countries as well. This move has helped Adidas remain competitive in the industry.

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