Nike And Adidas Case Study
There are several sportswear companies in the united kingdom for example, Pentlands group which owns a portfolio of sports brands such as Speedo, Berghaus, Mitre and the controller of JD sports retail chain and sports direct, other famous brand as Dunlop, Slazenger and Kangol. Like Nike and Adidas, they produce all of entire sports product outside the United Kingdom to save the manufacture cost. As a result, United Kingdom sportswear market entirely depends on imports, mostly from Far East, where the people’s republic of china is currently the largest exporters of textiles.
In recent year, the global recession and economic uncertainty have been the greatest threat for sportswear as the market suffering a decrease in sale in 2009. After 2009, sales have increased as customers are buying the sportswear more cautiously due to fear of another recession. Besides other factors which have affected the sportswear market such as the sportswear cost, global shortage of cotton, mounting the transportation cost, import and labour cost etc. (lussier and …show more content…
The BCG matrixes suggest a way of testing and making sense of a company’s portfolio of product and market interest. The idea of BCG matrix based on the product life cycle theory that can be used to decide business priorities. The BCG matrix makes it easy to analyse the product range and helping to take decisions about products internal strategic analysis. The main idea behind the BCG matrix is that it is better for the company to get the bigger market share a product or the quicker market growth.(stern and …show more content…
In this level business have a high market share in a low growth market where business is profitable and a generator of cash. Because of profits, the business can be milked on an ongoing process. However, Businesses still have to spend money for advertising in cash cows level to increase the market share. Profits from the business can be used to support other products, which are in their development stage. In the cash cow level business have to follow standard strategy to defend strongly against competitors. (Stern and Deimler,2006)
Dogs: In the Dog level, A product that has a low market growth in a less market share. In this stage, business is not profitable. It is very costly and risky to cultivate the product to increase the market share because of low growth market. Therefore if the Dog stage has been identified as part of a portfolio, the business is often stopped or disposed of.
BCG matrix for NIKE footwear: Nike has come up with new product idea- casual footwear for the youth market, which is quite revolutionary in terms of style and comports. The BCG matrix for Nike (casual footwear) are described