ATHLETIC FOOTWEAR   

 INDUSTRY LEADERS

[HOME][Comparison between Nike/Adidas][Nike][Adidas]

Market Share of US Branded Athletic Footwear Market--1997

          Who is the Industry Leader?

• Nike is currently the most dominant athletic footwear company.

• Nike’s sales have grown from $2 million in 1972 to $270 million in 1980 to over $3 billion in 1991.

• In 1997, Nike’s footwear grossed nearly $3.8 billion in the US

How have the leaders changed over time?

• Before Nike’s rise to dominance in the mid-80’s, Adidas was the global leader in athletic footwear.

• Adidas has always been particularly involved with the production of soccer and tennis shoes.

• Since the 1980's, Nike has been the most successful seller of athletic footwear despite a sales lapse in the mid-'80's.

• In 1987, Reebok owned 30.1% of the footwear market compared to Nike’s 18.2%.

• In the 1980's Reebok's industry dominance was a result of Nike's inability to predict the popularity of women's athletics, most notably aerobics.

• Nike was able to regain its position atop the athletic footwear industry in the late '80's and early '90's with the introduction of its "Air Jordan" shoes. Nike sales now constitute nearly half of branded athletic footwear market.

How does the leader retain its competitive advantage?

• Nike has been able to ascend to the top of the footwear industry as a result of its innovative designs and marketing strategies.

• n order to catch Nike, Adidas has implemented many of the same strategies as Nike including the sponsorship of marquee athletes and teams, which include the New York Yankees and Kobe Bryant.

• Nike is extending its dominance into Europe and is starting to look towards penetrating the markets of Asia.

• International sales are an increasingly important part of Nike’s sale. In 1997, international sales accounted for 37% of Nike sales; in 1987 it was 27%.

 

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For comparison of Nike and Adidas Competitive Strategies