Nike swot examination essay

Strong points

1 . Founded brand name – this means that Nike has already built up a good reputation and it has a large market share within just its sector. 2 . Great retail backlinks – Adidas has established very good links with retailers and retailers, which offer Adidas’s products. 3. Founded worldwide distribution network – this means that Adidas’s products are shipped into a large number of countries. 4. Popular sports stars advertising items – Adidas has a series of football celebrities who wear/advertise their products, including David Beckham, Zinedine Zidane, Stephen Gerrard etc .

five. High level of sales – Meaning Adidas sell a large amount of products. 6th. Good reputation for quality – Adidas have built up a good reputation over time for the caliber of their items.

Weaknesses

1 . A large amount of financing is required for research and development of new products, therefore their prices are high – this means that Adidas demand a large amount of money so that they can carry on producing high quality products. 2 . Reliant around the sport industry – This means that if there was no longer an industry in the sport industry, Nike wouldn’t manage to survive as they only develop goods through this industry.

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Options

1 . New products – A single option, which Adidas could take, is generating new products. 2 . Make works with sports celebrities – Adidas could make an effort to persuade more sports superstars to wear their products by offering these people deals. 3. Expand syndication network – Adidas may also export their products to fresh countries exactly where their products weren’t recently sold. 5. New unrelated products – Another option intended for Adidas should be to make new products outside of the sports market.

Threats

1 . Competition – Adidas’s competition includes Nike, Reebok, The puma corporation, Umbro, Diadora and Parte etc . These kinds of organisations could ultimately consider Adidas’s market share, forcing Adidas out of the market, making them under. 2 . Pumpiing of components would cause prices to increase, therefore much less customers will buy Adidas’s products – this means that if the prices of materials used were to go up then this would cause the costs of Adidas’s goods to rise, as the merchandise would be more expensive to make. This could mean that less many persons would purchase their items at higher prices.

http://www.telegraph.co.uk/finance/london-olympics-business/8545104/London-2012-Olympics-Adidas-aims-to-beat-Nike-into-second-place-at-Games.html London 2012 Olympics: Nike aims to overcome Nike in to second place at Video games It is not only the athletes that will be competing pertaining to first place by next summer’s Olympic Games. Adidas, the A language like german sportswear company, plans to use the games as a springboard to surpass its arch rival Nike as the most important sportswear organization in the UK.

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Nike is currently marketplace leader in the UK with an 18pc reveal of the ultra-competitive £4. 3bn sportswear marketplace. Adidas is in second place with a 15pc share, yet hopes that its status as official sportswear partner from the Games can help it attain its target of overpowering Nike by simply 2015 with the latest. Along with kitting out your athletes in 25 in the 26 Olympic sports – equestrianism needs very dedicated equipment – Adidas will certainly dress the 70, 500 Olympic volunteers, provide the clothes for the pre-games flashlight relay and create apparel for the athletes put on in the Olympic Village. Nike is also the Games’ established clothing licensee, and will promote Olympic-themed and branded clothes through a unique stores and third-party retailers, such as Petrol station and Asda. On top of this, it has appointed Stella artois lager McCartney, the designer and daughter of Friend Paul, as the innovative director of Team GIGABITE.

She will supply the team with garments including their personal unsecured tracksuits and has also designed more trendy “capsule” amounts that will be on the high street. (High road retailer Following will provide Team GB with the formalwear, including the suits intended for the starting ceremony. ) There will be a big sustainable and environmentally-friendly element to the apparel, Adidas explained. It is not inconceivable that some of the athletes’ system will be for least partly made from plastic drinks wine bottles. Herbert Hainer, Adidas’s chief executive, said the company is looking to achieve product sales of£100m from its Olympic clothing lines.

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“It is the perfect platform for all of us to show the world that we will be one of the greatest sporting activities brands on the globe, ” this individual said on vacation to Greater london on Comes to an end. He explained Ms McCartney’s designs as “fantastic”.

Mister Hainer added that he is confident Staff GB can do well. “The preparation and enthusiasm is tremendous, but it will surely help all of us hit the target, ” he stated. Adidas is going to bolster their marketing over the UK inside the run-up towards the Games simply by opening 75 temporary “AdiZones” – areas that will contain free-to-use golf, football or perhaps basketball equipment. Gil Steyaert, Adidas’s taking care of director of market north – the geographical region that includes the UK – stated these areas will attract youthful consumers to the Adidas brand. “We happen to be one of the brands that is best to the children market. We like to imagine we will be the cool model of the Video games, ” this individual said. The full point from the exercise is to knock Nike off the perch in britain, he added. To do this, Adidas must beat Nike working in london, where it is the top sporting activities brand simply by some range.

Mr Steyaert said Nike is the most popular brand in a few areas of the north of England, including Liverpool. Nevertheless , it must get London if it wants total dominance. Mister Steyaert said: “London can be described as place exactly where we terribly lack leadership yet. While we do possess leadership consist of parts of great britain, London is crucial. ” Adidas has invested around £100m in the 2012 Olympics. This kind of figure is split involving the cost of turning into an official spouse, the cost of manufacturing the outfits for the athletes, the volunteers plus the retailers and the cost of advertising the runs and the company. Even if the firm achieves its desired top rated line sales of £100m, it will only go a way to paying off the £100m bottom-line purchase.

Mr Hainer admitted that if checked out purely on a profit and loss basis, the purchase is a “big loss”. Yet , he declared that the positive rewards to Adidas’s brand and standing in great britain are a lot more. Nike is unlikely to sit back and allow Adidas to press ahead with its assault. It has taken a large retail store in the Westfield shopping centre just subsequent to the Olympic site, a shopping middle through which 70pc of admission holders to the main stadium will go, and it includes signed a deal breaker to be part of Boris Johnson’s Legacy to get London sporting activities plan. But Mr Hainer is similarly bullish. “I am extremely confident that people will have a presence that won’t be skipped, ” this individual said. “When you happen to be playing inside the sporting goods arena, you want to succeed. ” Adidas’ rich background in the Olympics

Adidas’ engagement in the 2012 London Video games continues you can actually “rich history” in the Olympic movement, chief executive Herbert Hainer said.

In the 1928 Amsterdam Olympics, Lina Radke-Batschauer was the first athlete to win an Olympic gold medal wearing Adidas shoes. She set a record time in the women’s 800m. Adidas sneakers were also donned at the 1952 Helsinki Game titles by Emil Zatopek, the Czech long runner, who have won three gold medals in one week. Adidas-wearing sportsmen also dominated the late 1960s Olympic games in Mexico. Among them was Dick Fosbury, who also cleared 2 . 24m to adopt the precious metal medal inside the high leap using a fresh technique.

Nike and adidas are sportswear companies whose products will be popular around the earth, while Nike has the advantage in product sales and sponsors, Adidas keeps growing. Adidas owns Reebok, Taylor Made the game of golf company and Rockport. Nike owns the Jordan Brand, Umbro, Hurley, Converse and Cole Haan.

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