the world. •Revenue 3.4 billion dollarsPuma is the third Nike competitor which is known for its running shoes as well as apparels and Clothing. Interestingly, the founder of Adidas and the founder of Puma were brothers. However, they had falling out long back in 1948, which gave rise to two major footwear brands – Adidas Prepared by: El Mahrouk RosePage 9
Strategic ManagementNikeand Puma. It is quite clear that Adidas is far ahead then Puma. But globally, Puma is still one of the strongest Nike competitors. It lacks for an equal level of sports sponsorships which Adidas and Nike have. But it is evident from the revenue generated by Puma that the brand is loved by many. Fila is also one of the largest manufacturing companies of Sports footwear and is one of the top competitors of Nike. However, Fila is not as premium as Nike and its products are known be cheaper than the top three brands. It is more into penetrative pricing and promotes products which are good in quality at lower prices. It is known more for its cost advantage then its design or differentiation advantage. Fila originated from Italy but in 2007, it was taken over by Fila Korea, resulting in the complete Fila group operating from South Korea.•Revenue 3.7 billion dollarsNew Balance is a premium sports shoe manufacture which is much costlier then Adidas, Reebok or Nike. It is a strong Nike competitor in the US and the UK, from where it derives its major revenues. New balance shoes are costlier because it carries out all its manufacturing within the US or UK, and does not export the manufacturing like Nike or Adidas group.Prepared by: El Mahrouk RosePage 10
Strategic ManagementNikeExisting StrengthsNike has a significant amount of brand equity in terms of recognition and appeal around the world tied to its status among celebrities and sports professionals. Its ongoing sponsorship of events also has built brand recognition for the company, including being known for quality, performance, reliability and innovative style.It has a recognisable tag line of "Just Do It," which continues to inspire consumers.The company is highly profitable due to its strategy to outsource all of its production overseas to keep manufacturing costs as low as possible whilst focusing on design, research, and development in the U.S. to create the most efficient labour cost structure possible.Existing WeaknessesNike is focused on its footwear business, which can be somewhat risky considering that market trends change and most companies sustain themselves through a product diversification strategy.The overall high prices of Nike products often positions it as a premium brand that is out of reach for many.
- Fall '19
- Athletic shoe, Nike, Inc.