Adidas and Nike’s Global Competitiveness and Strategies

Adidas and Nike’s global competitiveness and
strategies1
ADIDAS AND NIKE’S GLOBAL COMPETITIVENESS AND STRATEGIES
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Adidas and Nike’s global competitiveness and strategies 2
Cover page.......................................................................................................................................1
Executive summary.........................................................................................................................3
Introduction......................................................................................................................................4
Adidas's and Nike's global competitiveness and global strategies..................................................6
Nike market segmentation, targeting and positioning.....................................................................9
Adidas market segmentation, targeting and positioning................................................................10
Regional recommended for Adidas to focus.................................................................................11
Recommendations..........................................................................................................................12
Demographics issues..................................................................................................................12
New product development.........................................................................................................13
Targeting the untapped market..................................................................................................13
Rebrand Adidas image...............................................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Appendices....................................................................................................................................18

Adidas and Nike’s global competitiveness and strategies 3
Executive summary
This report entails analysing global competiveness and strategies used by Adidas and Nike to
offer their product to the international market. With respect to this, the report comprises a
complete marketing plan elements such market examination, country attractiveness and
competitive strength of both firms. Nike can provide and increases its produce scope by
providing other connected merchandises and set value-based approaches. The reports also
explains in great detains about the segmentation targeting and positioning strategies of each
companies. Many celebrities are discussed with regard to the association of each brand. The
report goes further to examines the strength, weaknesses, opportunities and threats that Adidas
will encounter while penetrating in Asia market such as India, japan and china. The paper
concludes by giving the recommendations such as new product development and rebranding the
Adidas products so as to counter the prevailing dominance of the Nike in Asia.

Adidas and Nike’s global competitiveness and strategies 4
Adidas and Nike’s global competitiveness and strategies
Introduction
Nike, Inc. is an American global firm that engages in the scheme, growth, production and
national promotion and vending of apparel, footwear, gear, services and fittings. The firm is
located close to Beaverton, Oregon, in the United States (Nederpel 2012). Nike creates an
extensive variety of sporting gears. The first brand was track sprinting shoes. But, at present,
they make shorts, shoes, base layers, jerseys, cleats for a broad scope of sports.
Adidas was established in Bavaria, Germany. Currently, Adidas is an international public firm
and is one of the leading sports products in the sphere (Adidas Group n.d.). It is a domestic
product title with its tree stripes symbol well-known in marketplaces across the universe. The
corporation, leading product portfolio, is enormous reaching from stylish athletic shoes and attire
to fittings such as baggage, eyewear and watches. Hiring over 46,000 individuals internationally,

Adidas and Nike’s global competitiveness and strategies 5
the Adidas group comprises of about 170 affiliates counting Rockport, Adidas golf, Reebok and
CCM-hockey (Krüger, Stieglitz, and Potthoff 2012).
The main competitors of Adidas and Nike are Fila and Puma where all function in the sporty
shoe sector. Moreover, new contestants such as Under Armour which was initiated in 1996 are
prevailing in the market though it indicates the challenges to enter the footwear sector where no
key entrant through the last 20 years. But, some firms such as Crocs are deliberated as a threat of
substitutes where they created an association to vend crocs shoes in specialised team colours.
Adidas and Nike use private servicers as dealers in low incomes nations such as Indonesia,
Thailand and China, and so, they have reliable control over these industries. Nike does not create
its running shoe; however they employ private service provider in Vietnam to manufacture the
sneakers. However, users in the footwear business have influence as they can change the brand
quickly for causes such as new style, greater quality or better cost.
Adidas's and Nike's global competitiveness and global strategies
It is apparent that Adidas and Nike is the most famous corporation that deals with athletic gears
in the sphere. Adidas and Nike are the main venders of athletic and sports shoe in the biosphere.
Adidas is the second most largely shoe manufacturers just after Nike globally. Nike is more
prevalent than Adidas because it has numerous superstar backings, with the primary objective
being basketball players. Therefore, their key markets are in the United States. However, it has
recently extended internationally. Adidas concentrates on individuals in tennis and football.
They have a main in Europeans nations, while being signified globally (Nike's New Business
Model 2010).

Adidas and Nike’s global competitiveness and strategies 6
Over many decades, Nike has moved its concentration to football with the goal of attaining
global acknowledgment, just as Adidas controls the global football marketplace (Nike
responsibility 2014).
Nike and Adidas’s product are divided into categories. Nike products have the first class that
comprises sunglasses and sports shoes. The second group encompasses merchandises for clothes,
body care, perfumes, caps and bags. Adidas sporting produces are separated into three groups,
with the first comprising Adidas eyewear, performance footwear and cologne. The following
class comprises Adidas vintage clothing and unique superstar running shoe. The third class has
belts, bags, style caps and gloves.
Products price of both Adidas and Nike are incredibly high. However, Nike’s merchandise is
overall higher compared to Adidas. The pricing approach utilised by Adidas is that of the
marketing skimming approach. Adidas merchandise process is reliant on the colour and
appearance. For the Nike to continue significant in the market, it employ the value-based
valuing and price leadership approaches, where the merchandise prices are centred on the cost
that is sited on that specific product by the user. It also used aggressive and diverse pricing
approach from those of the Adidas. Nike’s Pricing approaches are founded on first-class portions
as their target users (Borts 2018). Adidas uses the placing distribution approach entailing
concentration most of its merchandise and resources in one locality, where clusters of users exist.
It illustrates why it has opened numerous outlets in several portions of the sphere. An advanced
trend by the Adidas is where its merchandise is vended online. The firm provides the user with a
substantial place, where the clients can purchase an item (Aubert, Saunders, Wiener, Denk and
Wolfermann 2016).