Comparison of Marketing Strategies

This assignment involves analyzing a list of studies and articles related to marketing strategies employed by different organizations. The summary includes references to research on sustainability marketing, social media marketing, hotel environmental marketing, pay what you want pricing, and more. It also mentions the comparison between Adidas and Nike's strategies, as well as the importance of aligning marketing strategies with supply chain performance.

Marketing strategy and brand
image of new company on the
soccer shoe market-

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................3
1.1 Overview................................................................................................................................3
1.2 Rationale of the research........................................................................................................3
1.3Aim of the study......................................................................................................................4
1.4 Objectives of the study...........................................................................................................4
1.5 Research questions.................................................................................................................4
1.6 Significance of the study........................................................................................................4
1.7 Limitations of the study.........................................................................................................5
1.8 Conceptual framework impact...............................................................................................5
CHAPTER 2: LITERATURE REVIEW.....................................................................................6
2.1 The soccer shoe history in the world.....................................................................................6
2.2 Market segmentation of soccer shoe market..........................................................................6
2.3 Market share of global soccer shoe market............................................................................6
2.4 Brand image of soccer shoe Adidas and Nike.......................................................................6
2.5 Background history and business of Adidas’s soccer shoe...................................................6
2.6 Market strategy analysis of Adidas Soccer shoe....................................................................6
2.7 The background history and business of Nike’s soccer shoe................................................7
2.8 Marketing strategy analysis of Nike’s soccer shoe................................................................8
REFERENCES................................................................................................................................9

CHAPTER 1: INTRODUCTION
1.1 Overview
One of the important questions that revolve around the minds of players is durability of
boots they use and its comfortability as well. The global footwear market is as footwear has
become a fashion accessory for people in the world. There is an increase in the demand of trendy
yet comfortable shoes among all age groups which is an important factor that is driving global
footwear market towards success (Baker and Saren, 2016). There is an increase in the demand of
athletic shoes among non-sport persons as well. In order to fulfil the rising demands of shoes,
manufacturers as constantly bringing innovative and creative shoes in the market (Fifield, 2012).
They are also trying to enhance their product portfolio so that large number of customers can get
attracted towards it. Another motive is to gain competitive advantages over other footwear
companies that are ruling the market.
In order to cope of with the rising demand of shoes, companies indulge in marketing
strategies where they aim to attract a large number of customers towards it. Nike and Adidas are
considered as the main player of shoe market having the highest market share at global platform.
Present research aims at analysing the brand image and marketing strategy adopted by
companies which have high market share in soccer shoe market (Cronin-Gilmore, 2012).
1.2 Rationale of the research
It is necessary that the research that is conducted by scholar is able to hold some purpose
so that a specific purpose can be served. Hence, scholar must be able to understand the rationale
so that its relevance can be assessed. Main aim is to understand the stated topic appropriately so
that it can be applied in a practical manner. Further, another important aim of conducting this
research is to understand the soccer shoe market. It will help Phymix to understand that what
innovative and creative branding techniques are followed by the market leaders of shoe industry
which can be adopted by Phymix as well with an aim to increase market share (Glanz, Bader and
Iyer, 2012).
Further, the research will also guide Phymix to generate higher profits for the company
so that the management outcomes can be attained effectively and efficiently. Hence, the stated
research has been conducted by the researcher (Kim and et.al., 2012).
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1.3Aim of the study
Aim of the research: To analyse brand image and the marketing strategy of the company on the
soccer shoe market) - a case study on Adidas, Nike and Phymix Shoe. Further, to discuss which
marketing strategy is more suitable for Phymix Shoe.
1.4 Objectives of the study
Based on the stated aim, following objectives for the research can be created:
 To investigate the differences between marketing strategy of Adidas and Nike.
 To analyse the way, Phymix can survive and become successful in the market.
1.5 Research questions
Based on the objectives, following research questions for the purpose of research can be
framed:
 What is the difference between marketing strategy of Adidas and Nike?
 How Phymix can survive and become successful in the market?
1.6 Significance of the study
The present research which has been conducted to attain a specific aim. The aim is to
analyse brand image and the marketing strategy of the companies which have a high market
share on the soccer shoe market. The research on soccer shoes holds a great importance in
following aspects:
 Academically: The research holds a great importance academically as the scholar
will be able to brush up its concepts regarding different marketing strategies that are
adopted by the shoe making companies these days. It will also help in understanding
innovation and technology that is helpful for the businesses in generating higher profits
(Taken Smith, 2012).
 Business perspectives: The research is also helpful in understanding the
perspective of customers in a better manner so that the best can be delivered to them as
per their tastes and preferences (Green, Whitten and Inman, 2012). Hence, better
understanding of the topic will help the policymakers to develop effective marketing
strategies for the entity (Borland and Lindgreen, 2013).
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 To shape better marketing policies for new soccer company: Research is
regarding understanding the marketing strategy of shoe company. Better understanding
to the topic will help company to frame effective policies which can be adopted. It will
drive the entity towards growth and development (Sarin, Challagalla and Kohli, 2012).
1.7 Limitations of the study
There are various limitations that can be faced by the researcher in conducting present
study on marketing strategy. It is difficult to conduct this study in a perfect manner due to
presence of certain loopholes and constraints. The researcher is having limited time and budget
which is the biggest constraint. It is necessary that the scholar has adequate amount of funds with
it so that valuable and effective outcomes can be attained from the research. Further, lack of
availability of secondary information have also greater impact on the results of research.
Restricted entry to some websites and data can barricade the knowledge and deviate outcomes as
well. These constraints have wider on results and can deviate the conclusion as well.
1.8 Conceptual framework impact
Conceptual framework is considered as one of the most important parts of study. It includes
a detailed investigation of the research. In order to conduct the present research on marketing
strategy, researcher can perform qualitative type of investigation. It is a type of social science
research which helps in interpreting non-numerical data in an effective manner (Thackeray,
Neiger and Keller, 2012). The main advantage of this research is that it helps in creating in-depth
understanding of the attitude, behaviour and events that are taking place in chosen population
sample. Further, the method is easy to be adopted and flexible enough as per the changing
research environment. The research method can be adopted to conduct study in minimum
possible cost which can overcome the barricading aspect of financial constraint (Whitelock,
2013).
CHAPTER 2: LITERATURE REVIEW
2.1 The soccer shoe history in the world
The soccer shoes are also known as Football boots or cleats. These are the item of footwear that
has been used by football players. Soccer shoes are especially designed by considering grass
pitches. Such shoes have studs on outer sole that help in holding grip. During 19 th century
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football game has gained extreme popularity in Britain. Football players used to wear hard sole
heavy boots when playing football. These types of shoes was first introduced that consists of
steel toe cap at the front side long laces and ankle support. Such shoes also have studs and hard
sole in the bottom in order to assist player in maintaining stability on the high pitch grass. In later
19 th century the specific types of shoes were introduced that was made up of heavy as well as
thick leather which height was up to the ankle. This was designed to protect the ankle of player.
The boot was very heavyweight.
In 1900 top 1940- During this period, football player used to wear very basic
shoes.^There was many footballs shoes manufacture like Hummel, Gola and valsport that has
gained the highest popularity during those days.
` 1940-1960- There was dramatic change in design of Soccer. Flexible and lightweight shoes
came into existence. The design of boots intends to assist football player enhancing kicking
power and increasing control rather than providing protection to ankle.
In 1960 There were many new and innovative design of Soccer were introduced. The
innovative design include lower cut shoes. These boots were designed to enable football players
to move faster and allow them to change direction quickly.
1970 to 1980- There was much advancement and changes in design of shoes. Shoes were
introduced in many colours. In between 1970 to 1980 the big brand that is Adidas has gained the
leadership in market. The company was considered as best shoes seller. The organisation focused
was on using quality leather for manufacturing Boots. The some good quality of leather that was
used by shoes manufacturing organisations are Calfskin, cow leather, and kangaroo leather.
1980 – The other big shoes companies like Umbro, kelme and Lotto enter into the market to give
tough competition to Adidas.
1990 to 2000-The new form of sole were launched to help football player to maintain or to
increase the balancing power. In late 1980 an Australian organisation named as Craig Johnson
has designed Adidas Predator shoes that was introduced in market in 1994 and has supported
firm in gaining success. During 25 th centuries advance technology came into existence that has
enabled business entity to manufacture first customise shoes for football players.
As with the passage on time football game has gained popularity, matches become faster
as well as players have become more tending. Producers of shoes has launch lighter boots that
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has been made from good quality of material. In earlier years' football shoes were available only
in black colour but now it has been available in many colours.
2.2 Market segmentation of soccer shoe market
There are different types of companies that have good brand image in the world. segmentation is
the best strategy to get higher performance sand productivity in a world. many organizations
follows various approaches to expand their business in an industry. They provide
appropriate products and services to the customers to increase overall firm productivity in
the world. Soccer shoe market is the famous market in a world and it is provided by the
different entities such as Addidas and Nike. They follow various segmentation strategies that
helps to expand their business in the world. There are different types of segmentation
strategies that gives more profit to the company. By using market segmentation the company
can easily categorize a product bases on the client needs. Based on the consumer needs they
should provide appropriate items and services. It help to get higher performance and
productivity in the world.
Firm must need to use market segmentation of the product and services it gives more advantages
to the company. There are two types of market segmentation that gives more profit to get
higher performance in a world such as geographic and demographic. Firm can easily divide
the segment and provide appropriate products to the customers. By providing products at the
geographic area firm can easily get desired target in the world. There are different types of
marketing strategies and approaches that help to get higher productivity in the world.
Geographic is the best strategy to increase their firm performance and also helps to expand
their business in a world. This is the best technology to get more profit in a world. For the
sports shoe market it is the best marketing strategy to enhance their performance in the
world. Entity can easily provide products by dividing the segment of market in geographic
way. Marketing strategies and approaches helps to get higher performance and also helps to
get desired target in the world. In geographic marketing segmentation company can easily
give item and services to the customers in a world. It also give more advantages to the
company to expand their business in different countries. Al marketing strategies have
different criteria and characteristics to give profit to a firm. This is the best way to get higher
performance in the world. In shoe market geographic is the best technology to get desired
target and higher performance in world. By using different types of marketing strategies
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companies can easily give appropriate and good quality [products to the clients. There are
many types of approaches that have various characteristics to earn more profit in the world.
Segmentation is the strategy that gives an effective way to enhance their firm performance
in a world. market segmentation provides the way to categorize the product by using the
segmentation strategies. Geographic segmentation gives more profit to the soccer shoe
market and also helps to get higher performance in the world.
2.3 Market share of global soccer shoe market
There are different types of companies in the world and they all have various market share that
helps to increase their firm performance in the world. There are various firms that gives
soccer shoe such as Addidas and Nike. Both firms uses advanced strategies to increase their
performance and productivity in the world. They also have different market share such as
Addidas have 9.7% and Nike have 22.9% market share in the world. Market share represents
the actual condition of the firm in a world. it is measured by the percentage of sales revenue
of company in the world. firm follows different types of strategies and approaches to
increase their sales revenue in the world. Both companies applies different types of
marketing and promotional strategies to increase their firm performance in a world. there are
various approaches that helps to increase entity sales revenue such as innovation. It is the
best method to increase market share in the world. firm must need to provide the innovative
products and services based on the client needs. It gives more profit and higher performance
in the world. Nike uses various innovation techniques such as it gives the products based on
the consumer needs. It also follows the pricing strategies that helps to sell more products to
the clients in an industry. To get competitive advantages in a world they must need to follow
appropriate and advanced technologies that helps to get higher performance and productivity
in the world. For the shoe market the companies must use marketing and promotional
strategies to increase market share in the world. there are different types of marketing and
promotional strategies that gives more advantages to the customers.
To sell more products in an industry they must need to follow enhanced techniques of marketing
such as segmentation and innovation. By innovating a products companies can easily get
desired target in a world. For the shoe market firm needs to follow different types of
promotional strategies such as use social media, Facebook and internet. Through this digital
technologies connect huge number of customers in a world. Client can easily attract by them
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and they will buy a particular product. It gives more advantages to the company to increase
their performance and productivity in the world. based on the client firm need to give
appropriate product to the customers. There are various strategies that helps to increase sales
revenue in the market. Higher market share gives higher performance and also helps to
maintain brand image in the world. for the shoe market promotion is essential because by
using the social media and internet the customer can easily attract with them. It gives higher
performance to a company in the world. market share of the soccer shoe market is different
in various companies but the higher market share of the soccer market is in the Nike. It use
innovation to increase their sales revenue in the world. it also has good brand identification
in the market. It provides the products and services based on the client needs. By providing
innovative items and services it increases sales revenue of a firm in the world.
2.4 Brand image of soccer shoe Adidas and Nike
Brand image refers to the image of company in customer mind. In order words it can also
be defined as the potential Of company to establish good impression in customer mind. It is also
known as brand total personality. Brand image or reputation can be enhanced or developed
through various marketing activities such as advertising campaign with consistent theme and
which is authenticated by direct experience gained by consumers. It is a name, design, symbol,
term or other features that assist enterprise in differentiating their products from that of
competitors.
Nike Mercurial and Adidas Predators have good brand image and big names promoting
their shoes. But Adidas is considered as the leading brand. The organisation has become leader
in shoes market in many terms such as it has supported many football teams to experience
winning in tournament. In Present Era Adidas has been considered as leading supplier of football
kit as the firm has supplied shoes to many winning teams. Enterprise has able to maintain its
position as a top football brand.
Adidas has approx 2.8m soccer as well as followers while Nike has approx 4.5 m
Facebook followers. Adidas company is enjoying has gained more popularity on social media as
compared to Nike.
Nike as well as Adidas are considered as top brand manufacturer by social as well as
digital media. Nike has designed football boots for artificial grass. Nike and Adidas have great
impact on the market. These firm has earned the highest revenue in the industry. Nike shoes has
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been used by many famous football players such as Ronaldo and others. While Adidas shoes is
worn by David Beckham and Steven Gerard those are the famous German football player.
Adidas shoes were worn by football player during FIFA world cup. Adidas and Nike are the two
most successful company. Their products have gain high popularity among famous as well as
professional football players.
Brand value of Nike is approx. $28.5 Billion. It has acquired many other organisations.
Adidas is best known for producing lightweight shoes for football played. The organisation has
high market and excellent market growth.
Adidas emphasizes on extending its business in North America in order to enhance its
image and to increase its market share. While Nike company focus on retaining its market share
in domestic market.
Adidas have adopted strategy to conduct fashionable partnership with the well reputed
companies like Rick Owens, Kanye West as this will help firm in gaining brand loyalty.
Marketing Strategy used by Nike was ineffective due to which organisation has to face short
term loss.
Adidas has launched many new products whereas Nike has still emphasizes on
manufacturing sportswear. Nike has to face criticism for promoting thin unrealistic body wears
for women. This factor has negative Impact on the brand image of the company.
2.5 Background history and business of Adidas’s soccer shoe
Adidas company is basically a German multinational organisation that design and
produces shoes , accessories and clothing item. It considered as big sportswear producer in
Europe and second largest in world.
The organisation got registered on 18 August 1949.The clothing patterns that was
followed by organisation consist of various features three parallel bars and its logo has same
content.
Chrifstoph Von Wilhelm Dassler who was the father of founder of Adidas company used
to work in shoe factory and her mother used to run a small laundry business. After living school
The owner of Adidas company name as Rudolf Dassler has planned to join his father at his work.
Rudolf was able to gain management position at shoe factory and later he achieved good
position in shoe wholesale business. After getting encouragement from various person he has
planned to manufacture his own shoes. He was supported by his family. During 1936 olympics
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Adolf Dassler has foster his career growth from Bavaria on one of the world's leading motorways
to the Olympic village with a suitcase full of spikes and persuaded U.S. Sprint (running) sprinter
The popular football player Jesse owen use them, the first sponsorship for an African as well
American football tournaments. Following Owens' haul of four gold medals, his success
cemented the good reputation of Dassler shoes among the world's most famous sportsmen.
In early year the organisation has entered into the competition with Puma. In 1997
Adidas Ag has got potential to acquire Salomon group that specialised in skin wear. The
organisation has also acquired Taylor made organisation, that has allowed and provided firm a
strength to compete with Nike.
In 1998, Adidas was against NCAA and sued them for not complying with the rules
related to logos, limiting the number as well as size of logos that was to be em-posed on football
players uniform. The organisation has created unique designed for its products that consists of
three strips.
The organisation has generated revenue approx. 5.83 billion Euros in between 1993
through 2000.During 2003 the enterprise has filed a law suit challenging the industries dealing in
products related to fitness and that uses two strips logo as their trade mark. As this logo was
similar to the Adidas trade mark symbol.
In 2004, Adidas has conducted joint venture with fashion designer Stella McCartney. She
used to design sports wear for women. In 2005, The company has revealed its intention to
acquire Reebok. In Jan 2006 the organisation has acquired Reebok. It was able to increase its
scale of operation and has gained sufficient strength in order to compete with Nike. The aim of
enterprise was to become leading athletic shoes producers in world.
` In 2005, the business entity has launch Adidas 1 Shoes that has not been produce ever
before. It get recognition as the Worlds first intelligent shoes. As it has features as as
microprocessor capability to perform approx. 5 million calculation per seconds that
automatically adjust the shoes level. It has been identified that uniqueness in brand and
innovation strategy of organisation has allowed them to become leading brand in market.
2.6 Market strategy analysis of Adidas Soccer shoe
According to Baker (2014), Marketing strategy is combining the marketing goals of the
entity with comprehensive plan It is considered as a foundation of marketing plan. In order to
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draw an effective marketing strategy, it is necessary that the researcher has conducted an
effective market research. The fundamental goal of marketing strategy is to increase sales for the
company and achieve sustainable competitive advantages. It is important that the goals are
formulated through evaluation and selection of market oriented strategies which can further helps
in contributing towards the core organizational objectives of the company. However, in contrast
to this, as per the views of Solomon (2014), marketing strategy is directly linked to the growth of
the business. It helps in understanding taste and preference of the customers and designing
marketing strategies accordingly. It also focusses on competitor, customers, market size and
potential market growth. It is a stepping stone to formulate marketing plan for the company. All
the entities in the market who want to stay competitive in the industry try innovating their
marketing strategy as per changing market dynamics. The policy makers ensure that the
company can get maximum impact in limited marketing budget so that the objectives of the
organization can be attained effectively.
According to Armstrong and et.al., (2015), Adidas tends to invest a lot in formulating its
marketing strategies so that maximum customers can be attracted towards it. It is considered as
one of the few shoes making companies who owns large distribution network by serving its
consumers through quality products. The marketing strategy makers at Adidas mainly focus on
innovation and try producing new products for the customers so that it can draw advantage over
other competitors. Adidas pursue a strategy of premium pricing where it charges higher from its
customers so as to focus only on high end group of the society for its revenue. The marketing
strategy has major focus on global market and mainly in the country where soccer is considered
as the national sport. However, in contrast to this, as per the views of Fifield (2012), Adidas is
involved in cutting down its production cost so that the soccer shoes can be made available to
customers at best possible prices. It tends to focus on certain kinds of design for the shoes so that
people can make out Adidas among all other brands very easily. It has also got involved in
expansion of its range from shoes to merchandise and other sports products as well. It helps in
attracting sports lovers to the store (Kumar, Rahman and Kazmi, 2013).
According to Kumar and et.al., (2013), Adidas has invested in best marketing and
distribution channel after evaluating buying behaviour of people in different countries.
Organizational culture at Adidas promoted innovation amongst its employees which forces them
to produce goods that are of high quality. It ultimately helps in attracting large number of
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customers. The material used in the production of soccer shoes is of high quality which
automatically attracts large customers base. However, in contrast to this, as per the views of
Leonidou and et.al., (2013), leather soccer shoes are one of the most expensive version of soccer
shoes that is offered by Adidas in its stores. Since, it is for high end buying, these are not made
available at every store and its offering is modified based upon the buying behaviour of people in
that country or any particular location.
2.7 The background history and business of Nike’s soccer shoe
According to Kim and et.al., (2012), Nike is considered as one of the leaders of producing
and distributing soccer cleats. The company has been able to get its name engraved in improving
the shape of game of soccer. It has been able to give large amount of varieties, colour
combination and designs in soccer shoes to its customers. It has landed up doing major
advertisements in various wide arenas, such as, World Cup Soccer championships. Soccer cleats
came into existence in mid to late 1500s where one of the wives of Henry VIII ordered a pair of
leader shoes for recreational play. It was the beginning and evolution of soccer cleats in the
world. Since, then various companies come up to cope up with the demand of soccer cleats
including Nike and Blue Ribbon Sports. Year 1976 Olympics are considered as the turning point
for Nike where its soccer and running shoes got noted which eventually increased the production
of shoes in Nike. However, in contrast to this, as peer the views of Sheth and Sisodia (2015),
various soccer and other sports players got involved in promoting Nike shoes by wearing it in
world cup and other championships. A range of soccer shoes is introduced by the company after
a specific period. It came up with Nike mercurial in 1998 then came Nike match mercurial in
2000. Its Nike mercurial Vapor got quite appreciation which was launched in 2002. Various
ranges and upgraded versions of mercurial vapor came into existence which become the most
common soccer shoes name for Nike.
According to Schmidt, Spann and Zeithammer (2014), Nike’s soccer shoes are most
preferred by people all around the world. The company was able to generate higher revenue
since it started marketing its shoes effectively. Since, the price range of these types of shoes is
high, it becomes necessary to market its product only in the areas where market affordability is
higher and people tends to purchase invest a lot in high range shoes. It has also been able to tap
sportsperson who are involved in playing some sports. Various sports equipment companies also
joined hands with Nike to promote their products at larger scale as well. However, in contrast to
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this, as per the views of Eggers, Hansen and Davis (2012), the entity does not have high quality
products at lower price range which makes it difficult for people to invest high on the same.
Leather soccer cleats introduced by Nike are much on higher side rather than normal soccer
shoes. It became difficult for various consumers to opt for such products. It led to decrease in the
revenue of Nike to a great extent.
2.8 Marketing strategy analysis of Nike’s soccer shoe
According to Borland and Lindgreen (2013), the marketing strategy adopted by Nike
helped it to become the leading shoe designer, marketer, distributor for athletic footwears and
merchandise. It has major focus on innovation emphasise greatly on research and development
so that the best can be provided to the customers. It helps in making the company profitable in
long run. The entity have been able to expand their operations in USA, Asia pacific, middle east
and African countries as well. The entity was able to build its brand image after the 1976 world
cup where majority of the players wore Nike shoes. It helps the entity to increase its revenue by
21%. Nike also offer customized merchandise and shoes to its customers so as to gain
competitive advantage over other shoe players. It has set up its factory abroad so that the cost of
production can be reduced to the minimum and gain higher returns from sales. 70% of the soccer
market is covered by Nike and Adidas, having Puma on third in the world. However, in contrast
to this, asper the views of Whitelock (2013), there are variety other companies that are involved
in providing athletic shoes but do not rule the market. These are, Lotto and Mizuna which are
other market players other than Nike, Adidas and Puma. Nike has also been involved in
sponsoring various sports events which also attracts large chunk of customers towards it. Nike is
one of the favourite brands of players and hence helps in building brand image of the entity.
According to The History of the Nike Mercurial Series (2014), there are various players
that were hired by the company in order to promote the brand. It includes, baseball player
Michael Jordan, tennis player Serena Williams and tiger woods. They became the spokesperson
for Nike. The company involved in spending US $32.4 million on Net TV commercials and
another US$ 39.8 million on magazine advertisements. Nike also got involved in rigid innovative
and creative strategies so that it can become market leader of shoes. Nike’s main focus is on
product design process, elimination of toxics and wastes etc. It also adopted corporate
sustainable development programme by getting involved in educations and sports programmes. It
established a new group called Business for Innovative Climate and Energy policy. The company
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has been able to prove its strength, stability and financial growth which is reflected in its
financial reports since last few years. However, in contrast to this, as per the views of
Comparison of Strategies between Adidas & Nike (2016), Nike has been able to gather praise and
brand image through its innovative advertising strategy. Its constant upgradation on the
technological upfront has helped the company to emerge as one of the top companies in soccer
shoe production.
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