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 om/watch?v=EPO20Pk SztE 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 AccessoriesAdidasFootwearSportswear

Business Structure NikeNIKE Five Subsidiaries –Cole Haan –Converse –Hurley International –NIKE Golf –Umbro AdidasAdidas Two Subsidiaries –Reebok –TaylorMade

Market Segments NikeRunning –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 NikeOutsourcingAdidas Implementation of Joint Operating Model in Europe

Distinctive Competencies NikeAdidas

Competitive Advantages NikeAdidas

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 NikeNike.com United States: 25,000 Retailers International: Distributors, Licensees, and Subsidiaries Adidas

Key Customers NikeAdidas

Key Competitors NikeAdidas New Balance Athletic Shoe, Inc PUMA AG Rudolf Dassler Sport AdidasNike 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 EconomyAdidasEconomy US Market share shrank 2009

Porter’s – Product Substitution NikeAdidas

Porter’s – Rivalry NikeAdidas

Porter’s – Buyer Power NikeAdidas

Porter’s – Supplier Power Intense competition among suppliers keeps manufacturing costs low

Porter’s – Threat of Entry Nike / Adidas Under Armour

Financial Analysis NikeAdidas

Ratio: 2 NikeAdidas

Ratio: 3 NikeAdidas

Ratio 4 NikeAdidas

Acquisitions Nike 1995: Bauer 2002: Hurley International 2003: Converse 2004: Starter Brands 2008: Umbro Adidas 2005: Reebok

Divestitures Nike 2007: Starter to Iconix Brand Group 2008: Bauer Hockey to Kohlberg & Co Adidas

Current Events NikeAdidas 2009: Cirque de Soleil 2012: London Olympic and Paralympics Partnership

Sustainability NikeAdidas

Strategic Direction / Changes Nike 2007: LIVESTRONG Challenge m/watch?v=RDfCTJQ TpXs 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 NikeAdidas

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Bibliography Hoover’s Inc. (2009). Company Discriptions. Retrieved November 22, 2009 from LIVESTRONG Challenge 2007 Video. (2007, June 1). YouTube video posted by livestrongarmy. Retrieved November 27, 2009, from Mehta, S. (2009, March 5). Fortune. Under Armour reboots. Retrieved November 28, 2009, from y/mehta_underarmour.fortune/index.htm?postver sion= y/mehta_underarmour.fortune/index.htm?postver sion=

Bibliography 40 under 40. (2009, October 22) Fortune, Retrieved November 28, 2009, from _under_40.fortune/index.html _under_40.fortune/index.html _under_40.fortune/index.html Pienciak, M. (2009, September 2009). The Motley Fool. Nike’s still got no bounce. Retrieved November 28, 2009, from 30/nikes-still-got-no- 30/nikes-still-got-no-

Bibliography Conerly, B. (2008, February 5). Seeking Alpha website. Nike strategy: divide and conquer. Retrieved October 19, 2009, from strategy-divide-and-conquer strategy-divide-and-conquer Burke, M. (2008, January 17). Forbes Magazine. On the run. Retrieved October 19, 2009, from ml ml