tapshoe.gif (9986 bytes) Comparison between Nike and Adidas tapshoe.gif (9986 bytes)

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Nike

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adidas-Solomon

Headquarters Beaverton, OR USA Herzogenaurach, Germany
Major Markets Basketball, Cross-training, Running, Women and Children’s shoes Soccer, Tennis, Athletics
Key Sponsorships Michael Jordan; Mia Hamm; Tiger Woods; Brazil Soccer New York Yankees; University of Tennessee; Kobe Bryant
Strategies

· Domestic market focus

· Shifted focus to soccer in order to gain international recognition

· Started athlete sponsorship frenzy

· Has created new look shoes to excite "bored customers"

· Nike Team Sports

· Changes shoe designs frequently to stay ahead of competitors

· Customized products (Nike ID)

· Uses overseas manufacturing factories to cut production costs.

· Perfected its internet site with custom footwear options

· Has lead the industry in advertising and marketing strategies

· European market focus

· Adidas dominates the world market, specifically the soccer market which is considered the "world’s sport."

· Sponsors professional athletes and athletic teams in response to Nike’s marketing technique

· Tries to cut production time and cost in order to be more efficient

· Uses low wage labor to cut production costs

· Has enhanced marketing and advertising budget

· Has recently tried to expand its market to sports equipment and apparel

Outsourcing

· Nike is not a production company; almost all shoes are outsourced; the home office in Beaverton designs, develops and markets the goods

· Subcontractors in Taiwan and Korea contract to other Asian countries for production

· Assembly factories in Taiwan, Korea, China, Indonesia and Vietnam produce the shoes.

· Nike’s trading company is the Nissho Iwai Corporation

· Adidas outsourced its production but the design and development process is based in Germany.

· In 1993, Adidas moved its production overseas to Asia in order stay competitive in the industry.