When we are talking about Adidas, they have been in the sameposition mostly because they offer high quality products with highprice range. And if Reebok or Puma do that in the future, it will be agreat threat for Nike.2.) Economic and Political InstabilityEconomic instability involves fluctuation of the exchange ratesbetween the US Dollars to other countries, especially emergingmarkets. Emerging markets have more instability than developedones.
Political instability includes the changes in government policy,restrictions of free trade or new regulations that can make thesales revenue fluctuate as well.3.) Price sensitivityCustomers will choose to purchase the more cost effectiveshoes. The threat that customers are more into cost-effective andless branded minded that European Markets are now facing,they will choose rather Reebok or Puma for the pricecompetitiveness.Competitive Profile Matrix (CPM)
In the CPM matrix constructed typically for footwear industrycompanies above, we can witness that Nike has basically had thehighest CMP level of its biggest competitors in the industry (thecompetitors are determined through market shares and profitability).CMP is competitive profile matrix that describes how a company doeswith its competitors in the same industry. The competition is not onlylimited by the profitability section nor product quality, but it coverseverything on what makes those companies become our competitors.Below briefly described the competitor’s profile of the company. AdidasAdidas has been considered an international brand but has made significant strides in the U.S. Their golf apparel division has enhanced
its offerings, and now produces clothing, shoes and accessories formany touring professionals. This has seen a great trickle-down effectinto the amateur game. Adidas has also signed major endorsementcontracts with many U.S. colleges, including the University of Michiganand the University of Notre Dame, to play and promote the company'sapparel.ReebokReebok has struggled at different times with Nike and Adidasbeginning to differentiate themselves, but the company has made apush by focusing on its professional basketball, football and hockeyequipment. Reebok hockey has several innovations that bolster itsusage rate in the National Hockey League and minor pro leagues,while Reebok football is on a similar upswing. The NBA appeals tomost sneaker consumers, and Reebok has made a push in this areaas well, with several shoes endorsed by the top level players.Through this analysis, we’ll divide those criterias into only few main criteria explained. There will be :-Nike’s position&market share,-Marketing strategy-Financial position,-and its Internal Condition.
Firstly, the position of Nike in the indutstry. As Nike has goneworldwide, we would have to identify it by international market anddomestic market. Both from the markets will be weighted 10% whichmake the total of 20% of the total criteria. Based on the criteria, the