Nike vs Adidas Essay Example for Free

Nike vs Adidas probeMy area of study for this disgorge would be more on comparing the performances for Nike and Adidas for the past 5 socio-economic classs. In this fuddle I would explain the performance such as process in profits, revenues, trade share, the connection employers and employees, size of the market share, steps for increasing the social performance, products performance, dividends per share, assets and the follow investment. Nike and Adidas and hurl been the top two booster cable gas companies in the sport diligence over the past few decades. These two companies dish out and run wide range of products for the customers and their products passported is mainly on sports wear for men and women and caters to consumers from different age groups. Their products consist on clothing such as jerseys, shirts, t-shirts, shorts and pants. These companies likewise provide the customers varieties of footwear such as sports shoes, day-to-day shoes, boots, sandals and stockings. Besides that, fashion accessories are also offered from these three companies such as bags, watch, bracelets, wallets and purse.And lastly they also offer a wide range of sport gears for their customers. Nike and Adidas have also been the top sponsors in the sport industry. Sponsoring their products is primal for the companies to draw off brand recognition, building their brand image and to promote their latest products. Nike and Adidas have been sponsoring equipments, clothing and accessories for athletes and coaches in sport tournaments and events. For instance, these three companies sponsor their products for football, soccer, basketball, baseball and many more. These companies also include slogan and axiom for their partnership.Nikes motto is Just Do It which is the signature of the brand which makes their products and the corporation recognizable to consumers. As for Adidas, their reliable motto is Impossible is Nothing which serves as an encouragement to athletes for their sports. Origins and History of Nike and Adidas Nike, originally known as Blue thread Sports was founded by University of Oregeon hybridise athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger, making most sales at track meets egress of Knights automobile.The companys profits grew quickly, and in 1966, Blue Ribbon Sports opened its first retail store, located on Pico Boulevard in Santa Monica, California. By 1971, the relationship between Blue Ribbon Sports and Onitsuka Tiger was nearing an end. BRS prepared to unveiling its own line of footwear, which would bear the newly designed Swoosh by Carolyn Davidson. The Swoosh was first utilize by Nike in June 1971, and was registered with the U. S. Patent and Trademark Office on January 22, 1974. Adidas was founded in 1948 by Adolf Adi Dassler, following the take apart of Gebruder Dassler Schuhfabrik between him and his older br a nonher(prenominal), Rudolf.Rudolf would later establish Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany. The companys clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidass current official logo. The Three Stripes were bought from the Finnish sport company Karhu Sports in the 1950s. Objective The objective of the project is to measure and analyse the marketing strategies of the top two sport fashion companies which are Nike and Adidas.So this project would be mainly conducted to resolute the similarities and differences of the two sport companies marketing strategies. Besides that, this project will compare on the performance of Nike and Adidas which include the companys growth in revenues, profits or pelf income, dividends per share, size of company in the market, performances of employees, steps for increasing the social responsibility per formance, products performance, stock performance and the company performances in investment. Problem StatementFirstly, the sport industry is becoming ever more competitive, with new brands competing for a share of consumers for the products in the market. Building a relationship with customers is a challenge facing for Nike and Adidas. This is because the companies need to be followed up with new trends and styles in the industry for their customers in order for them to build their products brand and image. Secondly, there was a case happened in China where a local Chinese domestic sports goods manufacturer company called Li Ning opened 6917 stores in mainland China by December 31,2008 aking it 1241 more than the socio-economic class of 2007.During the course 2008, Li Ning has print its financial report which states that imputable to the Beijing Olympic Games, the company made tally revenues of CNY 669(million) a socio-economic class on- year-increase of 53. 8% compared to the year 2007. Not only that, Li Ning made an overall entry into the market of southeasterly Asia. Now they have stores in Singapore, Malaysia, Indonesia and other Southeast Asia countries. This became a problem for Nike and Adidas where the two international giants describe recession in their performance in China.According to the financial report of Adidas, the companys meshwork profit fall by 95% to 130 million in the first half of the year. As for the sales revenue, it decreased by 2% to 5. 03 billion. As for Nike numbers of distributors were reduced in the year 2008 due with the bad performance. Thirdly, the problem that attracted me to do this project is because I would like to know why Nike had low growth in revenue in the year of 2009. Nike had only increased 3% of its revenue to $ 19176. (million), with net income locomote 21% to $ 1486. 7(million). As for Adidas, they also had the same problem. But the problem for Adidas was worst compared to Nike because at the year of 2009, the company net income is 10381(million) which decreased compared to the year 2008 which is 10799(million). These two companies had their difficulties is the year of 2009. So I would eager to find out about the problems they faced during that year. Significance of StudyThe importance of doing this project would be very important to other parties and companies. In this case, subaltern and medium green light (SME) would get the advantages and benefits because they would know how the well-favoredger companies such as Nike and Adidas operates their businesses, how they sell their products and services to their customers, what kind of marketing strategies they use, how the companies measure their performances and the most important suit is how Nike and Adidas continues to become a extended market player in the sports industry.As part of that, this project will comp bristle mainly of small to medium-sized companies to engage in a diversity of activities which includes manufa cturing of sport goods, sport tourism, media, and construction of venues. For example, small and medium enterprise (SME) in Malaysia can take the opportunity to get involved with sport products, services, sponsorships, hosting up international sport tournaments and events.And not to forget, the involvement of (SME) would also helps our country in the tourism sector because many athletes and participants will get to travel and visit our country and this will relatively build the countries economic performances. Corporate social responsibilities (CSR) also play a role for every sport companies in responsibility to act in a way that positively contributes to their stakeholders and the communities in which they exist.In this case, it is increasingly important for the social and economic issues such as rapid technological change, a diverse and aging population, environmental changes and mounting concerns regarding the countrys growth social divide have resulted in focusing on the respon sibility of firms to the communities in which they operate. (Margolis Walsh 2003 Sagawa Segal 2000) Justification The actor I chose this topic is because the project is interesting as sports is an important part of todays society and plays a larger role in many peoples lives.From a social standpoint, sport plays a positive role in uniting people from different social backgrounds. This can aid peoples understanding and tolerance of each other. As far as education is concerned, sport is an important part of every childs schooling, as it plays a big role in both their physical and mental development. It teaches children how to work as a part of a team and cooperate with others, while at the same time improving physical condition. The second reason I chose sports industry because this industry is growing rapidly in Malaysia.There are continuous demands from customers, sports athletes, and models for these sport products. The Malaysian sport industry is considered as a young industry comprising of small and medium-sized businesses. The Malaysian sports industry comprises of companies engaging in a diversity of activities, from the manufacturing of sport goods, sport tourism, media, to the construction of sport facilities. The third why I chose these two companies is because Nike and Adidas has been the biggest market share player in the sports industry.Nike controls 31% of acrobatic sportswear which is the highest market share compared to other sport companies in the year 2007. As for Adidas, they control the second highest share of athletic sportswear which is 16% of the market in 2007. As for other companies Puma controls 7%, Reebok 6%, mod Balance 6%, and Converse 4%. Expected Outcomes The expected outcome which I can solve is Nike would have the better performance for this year 2010 because their net income/profit for the past few years have been stable. Ever since the year of 2006, Nikes net income/profit stands at $ 1392. (million).As for the year 2007, it increased to $ 1491. 5(million). At the year 2008, Nikes net income/profit increased with huge and outstanding amount of $ 1883. 4(million). But by the year of 2009, their company had a decreased in their net income/profit which is $ 1486. 7(million). As for Adidas, the company would not have a better performance compared to Nike because in the year 2009, their net income was only 245(million). Their net income decreased with a huge margin compared to the year 2008 which is 642(million). So the key impact from the financial statement of year 2009.The net income of Adidas reduced more than 60% in 2009. But Nike was capable of stabilizing the results with a shaver reduction of only 20% in 2009. As for the performance of dividend development, Nike has shown increases in its number. For the year 2006, Nikes dividends tell per common share stands at $ 0. 59. Their company dividend increased to $ 0. 98 in the year 2009. But as for Adidas, they showed a decline from the year 2006 t o 2009. In the year 2006, Adidas dividends declared per common share stands at 0. 42. sequence in the year 2009, Adidas dividends declared per common share felt to 0. 5.As for the expected outcome for the year 2010, Nike would be expected to increase their dividends successfully because their dividend declared per common share has been rising steadily. As for the companys asset assessment, I can expect that Nike would do better in the assets performance in the year 2010 because their total assets have been increasing from the year 2006-2009. The total of assets that Nike had in the year 2006 was $ 9,869(million), in the year of 2007, Nikes assets increased to $ 10,688. 3(million). Last year, Nike had a total of assets of $ 13,250(million).This shows that Nikes assets have been increasing and it is expected to rise in the year 2010. As for Adidas, their companys total asset is not stable from the year shown in 2006-2009. In 2006, Adidas totals assets stands at 8379(million). It d ecreased on the following year to 8325(million). As for the year 2008, their total assets were increased to 9533(million). As for 2009, their total assets decreased to a total of 8875(million). Ever since Adidas total of assets is not stable, I can expect that Nike would do better in the assets performance.Referenceshttp//condor.depaul.edu/aalmaney/StrategicAnalysisofNike.htmhttp//www.lotsofessays.com/viewpaper/1693768.htmlhttp//en.wikipedia.org/wiki/Nike,_Inchttp//en.wikipedia.org/wiki/Adidashttp//en.wikipedia.org/wiki/Reebok