This paper aimed at exploring the competitive strategy of Adidas and growth opportunities that the company can take advantage of. Strategy is very important to the success and sustainability of any company. It involves understanding of the company’s core capabilities, weaknesses, risks it faces and strengths and using them to design a sustainable competitive strategy.
The paper begins by exploring how the main competitors in the sporting goods industry; Adidas and Nike used various strategies to survive and sustain their positions in the market. Both companies focused on broad differentiation. However, Adidas focused on design innovation, cost advantages, speed of production and enhancing attractiveness of its products. Nevertheless, Nike remains to be the market leader in sport footwear and apparel industry. To challenge Nike’s position, Adidas must strive to penetrate Nike main market of North America, develop new markets in the emerging economies and while putting more investments in product and process innovations. The author also found that the company can consider strategic partnerships and greater use of technological applications such as CRM systems to enhance its competitiveness.
Table of Contents
- Executive Summary
- Introduction
- Competitive Strategies of Nike and Adidas
- Strategies of Nike
- Strategies of Adidas
- Growth Opportunities for Adidas
- Growth Strategies for Adidas' New Product Development
- Conclusion
- References
Objectives and Key Themes
This paper aims to explore Adidas' competitive strategy and identify growth opportunities. It analyzes the competitive strategies of Adidas and Nike, focusing on how Adidas can leverage its strengths and address its weaknesses to challenge Nike's market dominance.
- Competitive Strategies in the Sporting Goods Industry
- Analysis of Nike's Strategies
- Evaluation of Adidas' Strategies
- Identification of Growth Opportunities for Adidas
- Strategies for New Product Development at Adidas
Chapter Summaries
Introduction: This chapter introduces the competitive landscape of the global sporting goods market, highlighting the challenges faced by Adidas in competing with established brands like Nike and Puma. It emphasizes the importance of technological innovation and adapting to changing market dynamics such as Brexit and evolving consumer preferences. The chapter sets the stage for the subsequent analysis of Adidas' and Nike's competitive strategies and identifies the need for Adidas to explore future growth opportunities.
Competitive Strategies of Nike and Adidas: This section uses Porter's Five Forces model to analyze the competitive environment within the athletic footwear industry. It identifies key competitors like Nike, Adidas-Reebok, Puma, and Fila, acknowledging the presence of smaller companies and the threat of substitutes. The chapter highlights the cost-saving strategies employed by both Nike and Adidas through outsourcing production to low-cost countries and examines the significant power held by consumers in influencing brand choices. The discussion emphasizes how consumer preferences and market trends play a crucial role in shaping product design and marketing strategies.
Strategies of Nike: This chapter delves into Nike's competitive strategy, focusing on its differentiation approach driven by innovation and substantial investments in research and development. It details Nike's commitment to enhancing athletic performance, reducing injuries, and maximizing user comfort. The chapter also explores Nike's market segmentation, targeting, and positioning (STP) strategy, illustrating how it uses sponsorship agreements with athletes and teams to target specific market segments and build brand loyalty. Finally, it examines Nike's closed-loop business model, showcasing its commitment to environmental sustainability and operational efficiency.
Strategies of Adidas: While this section is not fully provided in the excerpt, based on the introduction and the emphasis on comparing Adidas and Nike, this chapter would likely detail Adidas' own competitive strategies, potentially contrasting them with Nike’s approach. It would analyze Adidas' strengths, weaknesses, and how they attempt to differentiate themselves in the market. It would also likely explore areas where Adidas lags behind Nike and areas where they have potential for growth.
Growth Opportunities for Adidas: This chapter, based on context, would likely discuss opportunities for Adidas to expand its market share and compete more effectively against Nike. This could involve analyses of new markets, technological innovations to improve products or processes, strategic partnerships, and better utilizing marketing strategies.
Keywords
Adidas, Nike, competitive strategy, differentiation, innovation, market segmentation, growth opportunities, sporting goods industry, global marketing, brand loyalty, sustainability, product development, outsourcing.
Frequently Asked Questions: Adidas vs. Nike Competitive Strategy and Growth Opportunities
What is the main topic of this document?
This document is a comprehensive preview of a paper analyzing the competitive strategies of Adidas and Nike, focusing on identifying growth opportunities for Adidas to challenge Nike's market dominance within the global sporting goods industry. It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What are the key themes explored in the paper?
The key themes include competitive strategies in the sporting goods industry, a detailed analysis of Nike's strategies (including differentiation, innovation, and marketing), an evaluation of Adidas' strategies (although less detailed in the preview), and the identification of growth opportunities for Adidas. The impact of factors like technological innovation, consumer preferences, and global market dynamics (like Brexit) are also discussed.
How does the paper analyze the competitive strategies of Nike and Adidas?
The analysis uses Porter's Five Forces model to examine the competitive environment. It highlights the strategies employed by both companies, including cost-saving measures through outsourcing and the significant influence of consumer preferences on brand choices and product design. Nike's strategy is explored in detail, focusing on its differentiation through innovation, R&D investment, and targeted marketing via athlete sponsorships. The preview suggests a similar analysis will be conducted for Adidas, comparing and contrasting its approach with Nike's.
What specific aspects of Nike's strategy are examined?
The analysis of Nike's strategy covers its differentiation approach based on innovation and R&D, its market segmentation, targeting, and positioning (STP) strategy, its use of athlete sponsorships to build brand loyalty, and its closed-loop business model focused on sustainability and operational efficiency.
What aspects of Adidas' strategy are covered in the preview?
The preview provides less detail on Adidas' strategy, but it suggests the paper will analyze its strengths and weaknesses, compare them to Nike's, and identify areas where Adidas can improve and grow. The focus will be on how Adidas can differentiate itself and compete effectively against Nike.
What growth opportunities for Adidas are discussed?
The preview indicates the paper will discuss opportunities for Adidas to expand its market share, including exploring new markets, developing technological innovations to improve products or processes, forming strategic partnerships, and refining its marketing strategies.
What is the overall objective of the paper?
The main objective is to explore Adidas' competitive strategy and identify potential growth opportunities for the company to enhance its position in the market and challenge Nike's dominance.
What keywords are associated with this paper?
The keywords include Adidas, Nike, competitive strategy, differentiation, innovation, market segmentation, growth opportunities, sporting goods industry, global marketing, brand loyalty, sustainability, product development, and outsourcing.
What is the structure of the document?
The document follows a structured format including an executive summary, introduction, chapters dedicated to the competitive strategies of Nike and Adidas, a chapter on growth opportunities for Adidas, a conclusion, and a list of references.
What is the intended audience of this document?
The intended audience appears to be academic, as the preview is for academic use, focusing on a structured and professional analysis of themes in the sporting goods industry.
- Quote paper
- Difrine Madara (Author), 2018, International marketing strategy of Adidas. A critical evaluation, Munich, GRIN Verlag, https://www.grin.com/document/508255
