Research and Development
Nike understands that innovation is key, and has been a key factor in their success.
focuses heavily on this area due to the fact that innovation is key in an industry like this one
because customers are always looking new trends and fads.
The company hires staff specialists
that include: biomechanics, chemistry, exercise physiology, engineering, industrial design, and
Furthermore, they consult with athletes, coaches, trainers, equipment managers,
orthopedists, podiatrists, and many other experts.
This is how important Nike believes product
innovation is that key to their business.
Nike produced 98 percent of their footwear in Vietnam, China, and Indonesia for all
markets excluding Latin America in fiscal year 2013.
Also, they have manufacturing agreements
in Argentina, Brazil, India, and Mexico to manufacture footwear for sale primarily within these
Most of Nike-branded apparel was manufactured in China, Vietnam, Thailand,
Indonesia, Sri Lanka, Pakistan, Malaysia, Turkey, Mexico, and Cambodia.
Adidas Competitor Analysis
Adidas has a broad differentiation strategy.
Adidas’ mission is to be the, “global leader in
the sporting goods industry with brands built on a passion for sports and a sporting lifestyle.
Adidas believes that sales would reach $17 billion, in Euros, in 2015.
Fiscal year 2013 sales
$14.5 billion, in Euros.
Furthermore, management expected to achieve an operating margin of
11 percent in 2015, along with growing annual earnings at a compounded annual rate of 15