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.