Nike's Global Domination: Competing in the Sports Apparel Market - Report Sample

Introduction

Nike, Inc. is an international organization that produces designer athletic footwear, apparel, and equipment. It’s based in the United States. Additionally, Nike has outlets in over 170 countries for retailing its products. Generally, the business has succeeded due to its agile marketing strategies. The firm is competing in the sale of the sports apparel accessories and equipment industry.

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Competitors

Major Nikes’ competitors include Adidas, Puma, Reebok, and Asics, which are also sportswear, equipment, and footwear brands. These companies are similar to Nike have had an aggressive marketing strategy. Besides, the companies diversify their sales by including agreements with teams, celebrities, school athlete initiatives, and executive athlete’s sponsorship (TOP 10 NIKE COMPETITORS in 2020 - What Competitors, 2020). Also, the companies invest a lot in research and development, which is vital, and focus highly on sustainability. The marketing commonality and resemblance in resources make it more challenging to compete.

Nike has significant competitors, and due to the rivalry, it has no option rather than cope with the Fast-Cycle market. Nike spent 3.58 billion on advertising expenses (TOP 10 NIKE COMPETITORS in 2020 - What Competitors, 2020). The promotional strategy entailed using heroes as a figure to carry emotions to motivate people to control their history. The impressive loyalty portrayed by its customers is its major strength. The success of this strategy forced Asics and Adidas to allocate more to marketing their products. Puma and Reebok also jumped their advertising expenses to draw more customers their way.

Overview

Nike, Inc. is an international brand that has been in existence since 1964. The company has over 768 stores globally, with many companies across the globe. The business produces a wide range of products, which created an added advantage to it (Mahdi et al., 2015). It also has a broad customer base for sports shoes, equipment, and apparel. It is famous for its stylish products, thanks to marketing. The company has also formed a sharp brand image. Besides, Nike is centered on innovation by manufacturing quality, durable and stylish products. It is the reason brands such as Adidas, Asics, and Puma are more aggressive for expansion and growth by adopting innovation as a core focus. Asics built a center for research where scientists regularly seek changes to compete with Nike (Mahdi et al., 2015). Apart from selling footwear, Puma sells underwear and stockings, Cobra Puma Golf for shoes, golf equipment, operates Stitched and clothes.

On the other hand, Adidas has to focus more on innovation, where it changed the raw materials for making its products. The company makes its products using organic cotton. It does not make use of plastic to manufacture its goods. Adidas sponsors Bayern Munich, a German football club (TOP 10 NIKE COMPETITORS in 2020 - What Competitors, 2020). The owners also led to diversification and developing Runstastic, a technology platform responsible for training planning. Additionally, Adidas owners also own Reebok.

Conclusion

Nike had to strengthen positions in its leadership with an aim of effectively and quickly responding to the decisions of competitors. Reebok sponsored the Atlantic Olympics games while Nike didn’t. Nonetheless, Nike opted to finance topmost athletes and acquired treasurable coverage. Adidas has a more chill factor in terms of its footwear products involving by celebrities such as Kanye West and Beyoncé, as opposed to Nike, which is more focused on sports (Mahdi et al., 2015). Conclusively, the battle for supremacy over the manufacture of the best apparel and equipment for sports continues.

References

Chen, Y. M., Yang, D. H., & Lin, F. J. (2013). Does technological diversification matter to firm performance? The moderating role of organizational slack. Journal of Business Research, 66(10), 1970-1975.

Mahdi, H. A. A., Abbas, M., Mazar, T. I., & George, S. (2015). A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to Competitive Advantage in the context of a Dynamic and Competitive Environment. International Journal of Business Management and Economic Research, 6(3), 167-177.

What Competitors. 2020. TOP 10 NIKE COMPETITORS In 2020 - What Competitors. [online] Available at: <https://whatcompetitors.com/nike/> [Accessed 15 July 2020].