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
nike-sucks and www.boycottnike started emerging which further aroused the anti-Nike emotions of a lot of people (Harrison & Scorse, 2004)
The most recent attention on female athlete has led to the recent signing of rising tennis star Serena Williams, who has made a 40 million dollar deal with Nike to represent them as sponsors and also design a line of apparel with them.(Brown 26) Serena Williams aces Nike deal worth approximately $40 million
" Go for it, Phil. (Dionne 7) The scandal which broke in 1997 at the height of one of Nike's biggest selling boosts during the NBA playoffs in 1997, rocked the industry and made many manufacturers, especially of apparel, scramble for cover
(Dionne 7) The scandal which broke in 1997 at the height of one of Nike's biggest selling boosts during the NBA playoffs in 1997, rocked the industry and made many manufacturers, especially of apparel, scramble for cover. (Haley) Nike was quick to respond with the intentions of not only saving face but changing the way they do business, and hopefully pressuring others to do the same
Knight said.* (Nike 2004, Press Release Nike News Website) The announcement of the new CEO was made relatively quickly after Knights announcement of his intentions to step down and on the whole marks a revolutionary period in company history, especially given its position as an evolutionary company, rather than a revolutionary one
(Lords, 1999) The current line of research further demonstrates that the post-Title 9-generation of women athletes and fans is distinctive in their values and opinions. (Sukhdial, Aiken and Kahle) The world of professional sports is changing as the title 9 generation matures and the athletes born of this collegiate market reach the age of professional sports involvement
This is all part of its substantial ability to create and bolster change within the trends of professional sports and evolve as a company bent of growth and evolutionary change, in both market and global responsibility. (Washington and Karen 187) Nike is recognized by one organizational behavior researcher as an innovative company for change
If injured they were sent home, and also they were penalized for taking time off for weddings and funerals; it was actually glorified slavery (Lewis, 2005). Today with the rapid growth the social media these practices would have been even more detrimental to the Nike brand and sales overall (Bernoff, Li, 2008)
Today contract manufacturing represents over 90% of all Nike apparel and shoe production globally (Nike Investor Relations, 2012). Nike has however learned several painful and costly lessons about both safety and child labor practices and the implications of downplaying them from a marketing standpoint (Boje, Khan, 2009)
Nike has however learned several painful and costly lessons about both safety and child labor practices and the implications of downplaying them from a marketing standpoint (Boje, Khan, 2009). Where Nike crossed the line was during a series of court injunctions to stop contract manufacturing in Vietnamese contract manufacturing locations where safety violations and child safety had been routinely practiced, yet the company attempted to say it was part of their Corporate Social Responsibility (CSR) initiatives (Doorey, 2011)
S. courts) the impression they were effectively dealing with the contract manufacturer's lack of compliance to international standards of safety and health labor (Lewis, 2005)
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)