Athletic footwear is primarily used for sports and related physical activities. According to global information company the NDP Group (2016), the industry in the U.S. achieved sales revenue of $17.2 billion US in 2015 (para. 1). The rivalry in the sports shoes industry in the U.S is very high, especially among the largest three players of Nike, Adidas and Puma (Said, 2013, para. 3). The purpose of the paper is to analyze the entry mode into the American market and comparative advantages of the country. In addition, the drivers of globalization and key successful factors of athletic footwear will be discussed.
The Mode of Entry
1. Nike, Inc. Nike, Inc. was founded in 1964 in the United States and now it becomes a multinational corporation …show more content…
It is a multinational corporation that produces and sells sports shoes, apparel and accessories (SuccessStory, n.d. para. 1). Adidas American Inc. operates as subsidiary of Adidas North American, Inc., which is the holding company of Adidas Group (Bell, 2015, para 1 to 5). As stated in the annual report of Adidas (2016), the priority of the company is to “gain credibility in those categories that are important to authenticate our brand towards the US athlete” (p. 13). The sales revenue was remarkably increased by both retailers and its own stores in 2015 in the U.S. (Adidas Group, 2016, p. 13). Also, Adidas has online platform to support its …show more content…
has been recognized as one of the most efficient economic entities. The market itself makes the decisions of what to produce, whom to produce and where to produce (EconomyWatch, 2010, para. 2). Although the competition in the U.S. is intensified, both buyers and sellers are free to enter or leave any business as it is governed by the market well instead of any regulation or legislation issued by the government (Grigg, 2011, para. 6).
The United States has remained the home of innovation (Manyika, Pacthod & Park, 2011, para. 2). The country still owns its ability to translate innovation into economic growth because the living standards are improved by increased new jobs and better compensation (Greenstone & Looney, 2011, p. 3). In addition, the rapid pace of innovation and increases in productivity promote the efficiency of workforce and produce more goods and services at lower costs (Greenstone & Looney, 2011, p. 1).
Drivers of
The Mode of Entry
1. Nike, Inc. Nike, Inc. was founded in 1964 in the United States and now it becomes a multinational corporation …show more content…
It is a multinational corporation that produces and sells sports shoes, apparel and accessories (SuccessStory, n.d. para. 1). Adidas American Inc. operates as subsidiary of Adidas North American, Inc., which is the holding company of Adidas Group (Bell, 2015, para 1 to 5). As stated in the annual report of Adidas (2016), the priority of the company is to “gain credibility in those categories that are important to authenticate our brand towards the US athlete” (p. 13). The sales revenue was remarkably increased by both retailers and its own stores in 2015 in the U.S. (Adidas Group, 2016, p. 13). Also, Adidas has online platform to support its …show more content…
has been recognized as one of the most efficient economic entities. The market itself makes the decisions of what to produce, whom to produce and where to produce (EconomyWatch, 2010, para. 2). Although the competition in the U.S. is intensified, both buyers and sellers are free to enter or leave any business as it is governed by the market well instead of any regulation or legislation issued by the government (Grigg, 2011, para. 6).
The United States has remained the home of innovation (Manyika, Pacthod & Park, 2011, para. 2). The country still owns its ability to translate innovation into economic growth because the living standards are improved by increased new jobs and better compensation (Greenstone & Looney, 2011, p. 3). In addition, the rapid pace of innovation and increases in productivity promote the efficiency of workforce and produce more goods and services at lower costs (Greenstone & Looney, 2011, p. 1).
Drivers of