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BUSINESS MANAGEMENTEXTENDED ESSAY1Topic:Comparative analysis of Adidas and Nike marketing strategies in theUS marketResearchQuestion:HowhasthemarketingmixofNikeaffectedthecompetitiveness of Adidas in the sports industry of the North American market?Word count: 3996Candidate number: jyp9671“Adidasvs.Nike:Who'sLeadingintheMarket.”StartupNewsXp,Blogger,13June2021,startupnewsxp.blogspot.com/2021/06/adidas-vs-nike-whos-leading-in-market.html.1
Table of ContentsTable of Figures3Introduction4Applying Business Theories8Porter’s Five Forces8Competitive rivalry (Strong force):8Supplier power (Weak force):12Buyer Power (Weak force):14Threat of substitution (Weak force):15Threat of new entry (Moderate force):17Marketing Mix20Product21Nike22Adidas23Price24Nike24Adidas25Place26Nike26Adidas28Promotion31Nike31Adidas33Conclusion36Bibliography38Reports and research papers:38Web sources:39Table of Figures2
Figure 1: Comparison of athletic brands by global sales from September 2019-20206Figure 2: Regional distribution of Adidas retail sales (2020)7Figure 3: Regional distribution of Nike’s revenue (2021)7Figure 4: Net sales of Adidas (million euros) vs. Nike (million USD) in North America10Figure 5: Sales ranking of performance footwear and sportswear brands 2019-2020.11Figure 6: Projected sales increase of sportswear brands 2020-202112Figure 7: GPMs’ comparison of Lululemon Athletica, Nike, Under Armour and Adidas AG13Figure 8: Adidas’ relationships with independent manufacturers14Figure 9: Nike vs. Adidas suppliers by region15Figure 10: Average price of top sneaker brands globally (2017)16Figure 11: Customer satisfaction evolution of Nike vs. Adidas vs. all others in America17Figure 12: New customer index of Athletic apparel brands19Figure 13: New Sportswear brands customer retention rate over time20Figure 14:Adidas marketing expenses as percentage of sales21Figure 15: Nikes’ global marketing expenses21Figure 16: Nike vs. Adidas net sales by product type 202022Figure 17: Nike Key product innovation 1974-201823Figure 18: Adidas sales revenue increase after launch of Adidas Athletics line24Figure 19: Adidas vs. Nike gross profit margin evolution27Figure 20: Nike’s revenue by distribution channel28Figure 21: Adidas quarterly sales revenue29Figure 22: Adidas net sales by channel 202131Figure 23: Nike annual revenue by type of product33Figure 24: Kit supplier brands 2018 World Cup35Introduction3
The sportswear market is one of the biggest industries worldwide, adding up to approximately353.5 billion USD in 2020.2Amongst the biggest players, two brands are dominating theindustry: Nike and Adidas.Founded by Bil Bowerman and Phil Knight in 19643, Nike is the sportswear market leaderholding 27.4%4of the global market share and 18.3% in the US5. The American company isthe most valuable sportwear brand globally by making 44.5 billion USD in 2021.6In secondplace, Adidas is Nike’s biggest competitor. Adidas is a German brand created in 1949 by theDassler brothers7most known for its tracksuits and Stan Smith sneakers8. The brand made23.59billion USD in the year 2020 and sold Reebok for an estimated 2.5 billion USD toAuthentic Brands Group in August 2021.1010Lee, Isabelle. “Adidas Agrees to Sell Reebok for $2.5 Billion to a Company Aiming to Go Public This Summer.” BusinessInsider,BusinessInsider,12Aug.

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