More regarding these observations are reported below. ANALYSIS NIKE/ADIDAS Presented By: MARKETING STRATEGIES/ADVERTISING STRATEGIES An effective marketing strategy must "continuously engage in competitor analysis" in an effort to increase competitive advantage (Cheung, 1995:1)
Nike has succeeded because it has positioned its product globally. Global positioning requires much "foresight and knowledge of the athletic industry," including the degree to which shoes had been marketed within the athletic industry worldwide (Jeannet, 44)
"Athletic shoe stores typically hold 30% of sales in the footwear market (MRC, 2000)." Nike and Adidas have fought for access to tope teams to gain sponsorship, as evidenced by the recent struggle and win by Nike of a $200 million contract with a Brazilian soccer power (Tkacik, B5)
Nike also portrays the image that it is not just interested in selling products, but also in building strong relationships and networking with international clients. Nike strategy incorporates "strong brand control, endorsements, and tailoring of product for individual consumers" (Porter, 2002: 19)
S. market share has been "averaging only 12% compared to Nike's 42%" (Wong, 2001)
Adidas recently made a $1.3 billion dollar purchase of a French Sport equipment maker, Salomon (Woodruff, 1998) which will likely expand its already large market, putting more pressure on Nike to compete
Indeed, Nike was not the only company that was facing these accusations as much the same thing was said about companies like Gap, Liz Claiborne and Wal-Mart. However, the latter two in particular had made tangible and positive efforts to eliminate or at least avoid the use of sweatshops to make their goods (Greenhouse, 2000)
They shifted their factories from Korea and Taiwan to Indonesia, China and Vietnam even before the first article looked at. The shift continued after the aforementioned 2000 article when they published where their factories were as a matter of routine (Nisen, 2013)
Nike was tops in terms of perceived quality of manufacturing and quality but the tied competitor Adidas in terms of overall customer service scores. Essentially, Nike was deemed to be the better shoe but the higher price point of Nike shoes allowed Adidas to be perceived as the better overall value in terms of "bang for the buck" (Siemers, 2011)
com). Although a 2009 study found that despite the billions in advertising by the major sporting goods manufacturers did not necessarily engender brand loyalty, Adidas focuses primarily on the traditional sport's marketing paradigm (Dawes, 2009)
The same is true in accepting and managing a diverse workforce -- those over 55 perhaps vs. those under 25 (Glass, 2007)
It has also taken responsibility for its factories in the developing world -- modernizing them and increasing cross-training and multicultural awareness, responsibility and opportunity. In an unprecedented step, Adidas worked with Nike and humanitarian organizations to end child labor in sportswear factories around the world (Hartman, et al
Nike's relationship with colleges and various NFL teams precludes Adidas from being more aggressive, but these contracts will expire. Adidas has expressed interest as an organization in increasing their strength in these markets, using the forces built up in the field over the past several years to revamp the way organizations react to them, and to others (Hellriegel and Slocum, 2007, 464-5)
Essentially it is a hierarchical theory that focuses on the integration of human needs, wants, and desires within the organizational structure; and how those relate to the way the business of the organization occurs. Structure, power, actualization and interdimmensional dynamics tend to focus on the individual and way that individual interacts, societal relationships within the workplace and how they mimic external society and culture, and what management skills need to evolve in order for the group to behave in a more efficient manner (Jaffe, 2008)
Within organizations, there are rules -- covert and overt. Group norms are defined as a set of internal rulings that are followed by the group members in order to increase the overall efficiency of the group's activity (Jones, 2004)
Influencing Adidas is a master at influencing behavior through its brand awareness management. It has a well-established name, contracts with many of the movers and shakers in the sports world, and most recently (2008) focused a campaign on key influencers to say to the world that Adidas as an organization not only supports innovation and influencers, but is one themselves (Troy, 2008)
Another great threat is Chinese homegrown sportswear. An economic is another threat for Adidas sportswear in a great way because of not adopting significant changes as per the duration of recession (Babiak, K
Company should not put heavy resources and money over the promotion of its clothing brands in the niche market, it is also needed to streamline its product offerings from time to time. The fourth recommendation is in the field of functional communication and technological awareness, company should not promote and advertise Adidas brands as a whole but it should promote and commercialize brands specifically one by one separately (Heere & James 2007, pp
At the moment, Adidas is not focusing on the less established, if it focus on these markets then it can attract a large number of consumers in a shorter period of time so there is more potential in the market such as third world countries or much populated countries of the world such as India and Pakistan. Another important issue of Adidas is weak communication with the customers (Kotler & Keller 2012, pp
For the betterment and selling of the product company can take advantage of entering into the Asian market. Adidas also lies in entering in the female market which provides an opportunity for Adidas to compete head to head with Nike in an unclaimed market (Mahony, Madrigal & Howard 2000, pp