Essay on Comparison of Nike and Adidas

4847 Words May 25th, 2013 20 Pages
Executive summary
This report provides an analysis and evaluation of two of the biggest companies Nike and Adidas in athletic footwear industry. One of the most popular products is selected from each of the company to investigate. The report is conducted by analysing detail into the athletic footwear industry and both companies’ background, macro and micro environment forces, market segmentation, target markets, targeting strategies and position strategies. Many secondary researches which will be in the appendices to are done to finish the report. The results show that Adidas and Nike have similar market segmentations and targeting market. Their targeting strategy and positioning strategy are also similar, although the major parts of
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The industry annual revenue is up to 48 billion while the sale of shoe stores grows slowly each year. However, the growth stoped and even started falling recently due to the economic recession. The prolonged world economic recession has taken its toll on the world footwear market with sales witnessing erosions in developed countries and growth slowing down considerably in developing countries. (Jose, 2011) Consumers have less willing to spend money on footwear and clothing. Rather than the luxurious footwear, they prefer to purchase footwear that is more economic and valuable which can be used long.

The footwear industry can be divided into three major markets segments: the outdoor footwear market, the athletic footwear market and the leather footwear market.
The outdoor footwear market has been growing as consumers prefer footwear that is more convenient, cheap and economic compare to other kind of footwear. According to the Outdoor Industry Association, outdoor footwear grew over 14% year-on-year to over $990 million for the first five-months of 2011. (Footwear Industry: Market Research Reports, Statistics and Analysis, n.d.)
For the athletic footwear market, it is more likely to be dominant by few large companies. According to the Athletic Footwear

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