Adidas and Nike A comparison

Product line:

Shoes, shirts, athletic apparel, basketball and soccer items.

Two examples of products from each company.

They both have online websites and stores around the world.

Adidas and Nike both come out with new designs that are appealing to it's target market and this helps them with sales.

They also come out with new ads that attract customers
They both successfully take full advantage of their athlete sponsors, have great brand recognition, and they both target the whole market.

Nike Weakness:

It's income is heavily dependent on shoe sales. Also retailers price products lower than then Nike does itself

Retailers sell their nike products lower than the nike stores.

Adidas Weaknesses

Premium pricing only makes products affordable to a small number of people

Don't own many other companies, the only one they have under their belt is reebok, this gives them a small range of products.

Nike Opportunities

There is also the opportunity to develop products such as sport wear, sunglasses and jewelry. Such high value items do tend to have associated with them, high profits.

Merging and manufacturing in China and India helps expand selling and income

Adidas Opportunities

Market development: Entering into new markets will be the only way to succeed in the future because developed economies are already having high competition.

Increasing demand of premium products: If we only consider the Indian market then there is a growth rate of 33% in demand of premium products. This tells us the future business opportunity & expanding market size of developing economies.

Changing Lifestyle: With the saturation of developed economies, changing taste & preferences, education & changing lifestyle of developing economies, there is a steep rise in the demand of premium goods & services.

Nike Threats

Because of manufacturing in places abroad tariffs increase, so costs could actually be bad for the company.

Prices are cheaper at retailers so customers won't go to Nike stores.

Adidas Threats

Huge competition with nike especially since Nike is #1 in the US

Supplier Dominancy: Due to majority of its production being outsourced; Suppliers have more bargaining power then the company

This is the comparison of Nike and Adidas

Credits:

Created with images by JeepersMedia - "Dick's Sporting Goods" • Pexels - "feet footwear nike" • Alexas_Fotos - "smilies cup yellow"

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