Nike vs. Adidas Team Robin Castillo Sirrea Hayes Beth Nichols Ofe Walker 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 Nothing http://www.youtube.c om/watch?v=EPO20Pk SztE History Nike 1964: Bowerman/Knight 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 Key Leaders Nike Chairman of the Board: Phil Knight CEO Nike: Mark Parker CFO: Don Blair President Nike Brand: Charlie Denson Global Operations: Gary M. DeStefano Adidas CEO Adidas-group: Herbert Hainer Finance Adidas-group: Robin J. Stalker CEO Adidas brand: Erich Stamminger Global Operations Adidas-group: Glenn S. Bennett Industry / Products Nike Athletic Shoes Apparel Sports Equipment Accessories Adidas Footwear Sportswear Sports Equipment Business Structure Nike NIKE Five Subsidiaries – – – – – Cole Haan Converse Hurley International NIKE Golf Umbro Adidas Adidas Two Subsidiaries – Reebok – TaylorMade Market Segments Nike Running – Footwear – Clothing Golf – Footwear – Clothing Soccer – Footwear – Clothing Adidas Sport Performance – Footwear Sport Style – Clothing Competitive Strategy Nike Premium Price Strategy Sponsorship Agreements No Manufacturing Adidas Premium Price Strategy Sponsorship Agreement Core Competencies Nike Outsourcing Adidas Implementation of Joint Operating Model in Europe Distinctive Competencies Nike Adidas Competitive Advantages Nike Adidas Industry Trends / Key Issues Nike / Adidas Sales are Flat Low Consumer Confidence in the Economy Global Issues Nike 2008: Trade Deficit with China Adidas 2008: Global Sports Partnerships 2009: International Day of Peace 2009: DJSI Winner International Ethical Issues Nike / Adidas China: Child Labor Sales Strategy Nike Nike.com United States: 25,000 Retailers International: Distributors, Licensees, and Subsidiaries Adidas Key Customers Nike Adidas Key Competitors Nike Adidas New Balance Athletic Shoe, Inc PUMA AG Rudolf Dassler Sport Adidas Nike Amer Sports Corp Callaway Golf Company SWOT- Strengths Nike Swoosh Logo Innovative Technology Focus LIVESTRONG Campaign Niketown Conservative Finances Adidas 3-Stripe Logo Purchased Reebok to gain presence in North America Leader in Corporate Responsibility & Sustainability Buyer Loyalty SWOT- Weaknesses Nike Male Dominate Executive Board Labor Costs Adidas Male Dominate Executive Board SWOT- Opportunities Nike Growth in Men’s Footwear Recent Growth in US Market Share Adidas Grow Reebok men Continue Partnership Development SWOT- Threats Nike Under Armour Economy Adidas Economy US Market share shrank 2009 Porter’s – Product Substitution Nike Adidas Porter’s – Rivalry Nike Adidas Porter’s – Buyer Power Nike Adidas Porter’s – Supplier Power Intense competition among suppliers keeps manufacturing costs low Porter’s – Threat of Entry Nike / Adidas Under Armour Financial Analysis Nike Adidas Ratio: 2 Nike Adidas Ratio: 3 Nike Adidas Ratio 4 Nike Adidas Acquisitions Nike 1995: Bauer 2002: Hurley International 2003: Converse 2004: Starter Brands 2008: Umbro Adidas 2005: Reebok Divestitures Nike Adidas 2007: Starter to Iconix Brand Group 2008: Bauer Hockey to Kohlberg & Co Current Events Nike Adidas 2009: Cirque de Soleil 2012: London Olympic and Paralympics Partnership Sustainability Nike Adidas Strategic Direction / Changes Nike 2007: LIVESTRONG Challenge http://www.youtube.co m/watch?v=RDfCTJQ TpXs 2009: Profitable Stock Split 2 for 1 Adidas 2008: Beijing Olympic Partnership 2009: Business Realignment 2009: Sold $15.7 million shares of stock 2009: Cirque du Soleil Partnership Recommendations Nike Adidas M Nike Adidas Bibliography Adidas – Impossible is Nothing. 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