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Nike Outstanding Performance Essay

1927 words - 8 pages

Performance

Nike and Adidas have been reported as the world’s top two leaders in sports apparel in terms of revenues gained. While Adidas started its company in the 1920’s and Nike started its company in the 1960’s, both companies are known for their similar product lines and marketing strategies. From the shoes they produce, to the advocacy campaigns they release, Nike and Adidas have both been competing for years on who could be called the number one brand in sports apparel. Our goal in this paper is to compare these two companies in terms of their structure, conduct, and performance.

This part of the paper is concerned about the performance between the two companies. We ...view middle of the document...

The goal of the company was to provide information about the products they offered to their consumers. The website was redesigned in 1999 in order to allocate the use of the e-commerce function. Adidas soon followed by launching their website in 2000, and later added the e-commerce function during the year.

Both companies used the net through their advantage by focusing on widening their marketing strategies by developing user friendly functions like easy purchasing through online stores. Both companies also adopted more of the e-commerce strategy by creating “pure-play-e-trailers” on their products being sold in the online stores. These pure-play-e-trailers were videos in the form of commercial like themes in order to show the customer a preview of what would be coming to them if they were to purchase the product. The main purpose in these pure-play-e-trailers were to promote their products, gain exposure, and transfer market knowledge to their business counterparts.

The two companies were able to expand and widen their product line to their consumer due to the use of the internet. They were able to maximize their market share by placing great importance in developing their marketing strategies on the internet through user friendly web appearance and user friendly web functionalities. However, Adidas had the upper hand on being slightly more favorable in their user friendly functionalities and website appearance with comparison to Nike’s.

Below is a comparison of Nike and Adidas in terms of their performance in terms of their branding image, prices, website design, and other various variables and financial statements.

Financial Analysis of Nike and Adidas 

In order to further understand the performance of Nike and Adidas, we decided to compare their stock performance (in terms of Euros) from the data we have obtained. Nike could be considered as the market leader in terms of its product aspects and its financial aspects, because Nike’s stock performance showed a higher revenue. After comparing both companies financially, we learned that Nike has a substantial financial advantage over Adidas. The operating margin and return on assets is still slightly lower for Adidas. However, Adidas has been slowly grinding down Nike’s market share over the years so there is still a possibility that it could turn out as the industry leader. The competition between the two companies indicate a market leader and market follower relationship. Adidas would have to improve on their operating margin and return on assets if they would want to gain ground on Nike and become the market leader.

|Measure |Nike |Adidas |
|Emplooyees |23,300 |14,716 |
|Market Cap |16.36 Billion ...

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