Practice 3 - Adidas vs. Nike PDF

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Comparison between Nike & Adidas...

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23.09.2021

Practice 3 – Adidas kicks off US drive to close in on Nike

1. Why is Adidas focusing on the US market? Adidas decided to focus more on the US market due to the fact that the US is the epicenter of the global sneaker and athleisure market. For instance, North America represents 40% of the worldwide sports market. In addition, Adidas is far behind his number one rival Nike in the US in terms of sales. Therefore, the company need to focus on the US market in order to beat his competitor on a global level and to increase sales. https://www.businessinsider.com/why-adidas-is-focusing-on-the-us-market-2017-3

2. Why has Adidas seemingly lost ground to Nike? As mentioned before, on a global scale, Adidas is far behind Nike regarding revenue. For instance, in 2020 Nike made 33.6 billion € sales, while Adidas made only 19.8 billion €. A reason for this gap could be that the perception among younger consumer is much higher for Nike than for Adidas. Additionally, Nike is not only present in its home market North America, but it is also far ahead of its rivals in all the big European markets. https://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/

3. Should Adidas only benchmark itself against Nike? What steps should it follow when conducting benchmarking activities? Although Nike is clearly the main rival of Adidas, I don’t think the German company should only benchmark itself against Nike. There are several other brands who are competing with

23.09.2021 Adidas. For instance, last year the American sports brand Under Armour sold more trainers, tracksuits and T-shirts than Adidas in the US. Benchmarking activities: In order to compete against Nike, Adidas must win over the millennials. This can be achieved for example by thinking about innovative ideas, being more present on social media and putting extra effort in analyzing and considering the interests of the younger generation. Source: “Adidas struggles to catch up with Nike’s runaway success”, Financial Times, 07/08/15 (Whipp, L. and Shotter, J.)...