Business Relationship Management: A Nike and Adidas Comparison Report

This report provides a comparative analysis of the business strategies employed by Nike and Adidas, two leading multinational corporations in the sports accessories sector. The report examines the acquisition, retention, and development strategies of both companies. Nike's acquisition strategy involves acquiring companies like Celect, Hurley, and others to meet growing demands and focusing on data-driven consumer behavior. Adidas utilizes acquisitions such as Taylor Made Golf and Runtastic to enhance its global presence. Both companies prioritize employee retention through competitive compensation, benefits, and employee stock options. Nike aims to maintain a competitive advantage through cost-effective benefits, while Adidas focuses on increasing sales and developing sustainable products through technological advancements. The conclusion highlights the similarities in the marketing strategies of both companies, particularly in their approach to acquisition, employee retention, and overall development.

RUNNING HEAD: BUSINESS RELATIONSHIP MANAGEMENT
Business relationship management
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Executive Summary:
Nike and Adidas are two multinational companies in this world in sports accessories sector.
To develop its market share, these two companies are following strategic policy. In this
paper, the strategic policy of these two companies regarding acquisition, retention, and
development will be discussed to identify the similarities between these two companies.

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Table of Contents
Introduction:...............................................................................................................................3
Acquisition:................................................................................................................................3
Retention:...................................................................................................................................3
Development:.............................................................................................................................4
Conclusion:................................................................................................................................4
References:.................................................................................................................................5

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Introduction:
Nike, an American multinational corporation established in 1964, is the manufacturer
and seller of footwear and sports accessories. Adidas, an international corporation founded in
1924, is the sportswear manufacturer. This paper will analyse the value-based retention
marketing of Nike and Adidas Company. In this paper, three issues such as acquisition,
retention, and development, will be analysed.
Acquisition:
Nike Company acquired a few companies such as Celect, Hurley, Invertex, Converse,
and Virgin Mega USA, to manage the growing demand for its products. This company is
interested in insight-driven, data-optimised and hyper-focused of the consumer behaviour
(Nike News).
Adidas Company acquired few companies, which are Taylor Made Golf, Reebok
International Adams Golf, Textronics, Runtastic, and Five Ten USA to enhance the
international appeal in the world (www.adidas-group.com). To enhance the availability of
products from Adidas Company throughout the world, this company follow the acquisition as
a strategy.
Retention:
Nike priorities employee retention. This company believes that employee retention is
the key to the growth of the company. Compensation system for the staff, health insurance
policy, employee stock purchase plan, retirement savings plan paid vacations, transportation
allowance for the staff are provided by this company (Nike News).
Employee retention is significant for Adidas, as this company believes that employees
of the company prefer the company culture. Through financial help and several other

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benefits, Adidas Company encourages its employees to perform well and help the company
to flourish (www.adidas-group.com).
Development:
Nike Company curtails the production cost to enhance its profitability. For the
development, this company follows a strategy, which is maintaining competitive benefit
based on costs (Nike News).
Adidas Company is focused on increasing its sales by 60% in the next five years
(adidas-group.com). Through building several sustainable products, technological
improvement, this company fixed its vision, which is becoming a dependable, fast sports
organisation.
Conclusion:
Therefore, in conclusion, it can be said that these two sports companies have some
common strategies for marketing. The acquit ion policy, employee retention policy and
development strategy are more or less the same.

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References:
Adidas-group.com. "Group/Profile/". Adidas-Group, 2019,
https://www.adidas-group.com/en/group/profile/. Accessed 28 Sept 2019.
Adidas-group.com. "Strategy-Overview/". Adidas-Group.Com, 2019, https://www.adidas-
group.com/en/group/strategy-overview/. Accessed 28 Sept 2019.
Nike News. "NIKE, Inc. Acquires Data Science And Demand Sensing Expert Celect". Nike
News, 2019, https://news.nike.com/news/nike-celect-acquisition.
Nike News. "Read Nike's Mission Statement And Find Information About NIKE, Inc.
Innovation, Sustainability, Community Impact And More". Nike News, 2019,
https://about.nike.com/.