Adidas case study pdf. (PDF) Case Study - Nike vs Adidas, market and comprehensive | Ankit Shah - broadfoot.biz
With Nike being first to the punch there was no room for mistakes and experiments. The upper right quadrant indicates a high rating in both web site appearance and user friendly functionalities. Through its initiative to be the first to market with its e-commerce web site launch back inNike was able to understand early on what its 14 million visitors demanded and enabled itself to become established while competitors scrambled to join, simultaneously creating a temporary competitive advantage as a result. Strong control over its own distribution channel Strong customer base Strong financial position adidas case study pdf minimal long term debts Innovative designs in footwear enabling consumers to design their own shoes online Brand reputation and recognition Diversity and variety in products offered on the web footwear, apparel, sporting equipment, etc. Adidas needs to improve in both operating margin and return on assets to gain ground on Nike.
They could even redirect the adidas case study pdf web site traffic to another adidas case study pdf site similar to the case of Nike in June All this online success has not come without a price. From their modest start, Nike has grown to be a global leader in the sporting goods industry.
The upper right quadrant indicates a high rating in research paper on voting behavior web site appearance and user friendly functionalities.
Adidas needs to improve in both operating margin and return on assets to gain ground on Nike. Adidas's approach to e-commerce was that of a follower since Nike was first. For Nike, an established and growing organization, a strong Internet presence felt like a natural extension to their already globally focused strategy.
InNike redesigned their web site with expanded e-commerce functionality. In essence, there is very little differentiation among the suppliers which makes suppliers' bargaining power non-existent. Adidas evolved from a minor player in the industry to the second biggest company in the industry.
August 30, 2017
With Nike being first to the punch there was no room for mistakes and experiments. The functionalities are identical in both cases. The operating margin and return on assets is slightly lower for Adidas. Through its initiative to be the first to market with its e-commerce web site launch back inNike was able to understand early on what its 14 million visitors demanded and enabled itself to become established while competitors scrambled to join, simultaneously creating a temporary competitive advantage as a result.
Brand identity plays a critical role in the buying behavior; strong identity will offer consumers trust and loyalty. Very similar to Nike, for Adidas to overcome some of the potential threats they must continue to improve their strategic position in the industry by increasing their e-commerce reach to the global markets.
Today www. Analyzing the graph, Nike. Currently all retailers are already nervous of how this will affect their ability to sell Nike and Adidas products online.
They could even redirect the company's web site traffic to another web site similar to the case of Nike in June
Adidas signed an agreement with SportsLine. The major barrier of e-commerce with respect to large firms such as Nike and Adidas is the technological barrier ranging from infrastructure to security.
Threats of Substitutes - Low Buyers' propensity to substitute is low. Almost every large firm has a web site, and most of these web sites contain virtual stores which provide convenience to consumers. Nike was named for the Greek winged goddess of victory. Their global reach has expanded through all continents; this is attributed to the emergences of the Internet and e-commerce.
Hackers may potentially lacerate into the site and could retrieve sensitive data such as consumer profiles, credit card numbers, and other corporate data. From its inception, Adidas has faithfully how to write an application letter for nsfas to three guiding principles embedded deep into its DNA: With time more firms that deal with athletic footwear and apparel will join the Internet rush providing customers with more choices.
That's why it included adidas. Nike and Adidas seem to follow similar online strategies but Adidas experienced a greater transformation from being a minor, insignificant player back in to adidas how to write an application letter for nsfas study pdf number two position in the athletic footwear and apparel industry.
Meanwhile, both Nike and Adidas must minimize their technological risks. With time and additional research and resources, this problem will be mitigated. Online selling has enlarged the reach for these firms allowing them to increase sales while minimizing operating costs.
Their web sites are more sophisticated and enticing to browse, both contributed to their large marketing budgets. An interesting issue with such development is the increased channel conflict it presents. Nike has landed a deal with Fogdog Sports which will sell their entire Nike product line on its web site.
Adidas in Part of this success is due to Adidas's ability to thoroughly leverage the Internet as a marketing and e-commerce medium, most of it at the expense of Reebok. As a result, Adidas relentlessly pursued innovation and refreshing content to differentiate itself from Nike. Additionally, Nike and Adidas have standardized their input procedures pertaining to the materials used, their labor force, supplies, services, and logistics.
The final product had to be attractive and able to compete. The future will prove to be very interesting for both Nike and Adidas, and those who move quickly will dominate the market. The Internet is a medium that is redefining competition and markets in sectors that previously did not embrace it.
The capital requirement for setting up an online shop is comparatively lower than setting up a traditional bricks and mortar establishment. Although, Nike and Adidas have engaged in e-commerce there are apparent gaps within their e-business strategy.
Nike and Adidas will also operate their traditional bricks and mortar establishments, while selling their specialty products on their e-commerce web sites. For Nike, to overcome the potential threats, they must continue to be innovative and explore opportunities globally. The final result is a web site that successfully portrays Adidas's product portfolio in an interactive and informational manner.
The financial comparisons of both companies indicate Nike having a substantial financial advantage over Adidas.
Consumer substitutes for athletic footwear products are low because there are little alternatives to switch, some substitutes for athlete footwear could be boots, sandals, dress shoes or bear feet. Primary Activities Adidas operation in production of enough products at a low cost and distribution of products to the market on time is done by its efficient supply chain management initiative.
Adidas even offers items not available in its retail stores Emerging brand name Pricing strategy is competitive to Nike's Merger with Salomon will allow Adidas to gain a strong foothold in the Skiing Industry Secondary web sites i. However, over the last few years, Adidas has been slowly eroding the market share from Nike.
Final Adidas case study
Figure 4 Financial Analysis. Consumers are not likely to substitute due to the performance specification of the product. Adidas launched their web site in the spring ofwhich was later integrated with e-commerce capabilities during that summer. Furthermore, the data collected can be used to produce innovative designs and improve their research capabilities.
Final Adidas case study | Adidas | Strategic Management
Along with high speed Internet connections, the Internet has become an essential tool for any business to compete domestically or globally. Nike and Adidas are two primary footwear companies along with their competitors who have adopted an online e-commerce strategy to increase their sales and product awareness.
There are many proprietary product differences in the industry therefore brand identity has an immediate competitive advantage. This program is the first time a company has offered such mass customization of footwear. Both Adidas's and Nike's strategy seem to be well ahead of their competition contributing to their e-commerce success.
This led to the development of www.
By continuously relying on innovative companies to redesign the site, Nike acquired the luxury of owning a site that's every bit as inspirational as it is informational, an important milestone for a market leader. Inthere were no e-commerce capabilities present, however the web site served as a brand building tool for the company.
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At this point in time both Adidas and Nike are not slowing down with their continuous web site innovations setting a high standard for the rest of the industry. Adidas with growing popularity has narrowed the gap from previous years.
Because the operations of both companies are similar, the table below only lists Nike's value chain breakdown.
InAdidas was founded along with its identifying trademark, the three stripes. The Internet has redefined competition therefore changing the evolution of competition.
Integrating e-business to its existing line of business is a key advantage to both companies relative to its competitors. Large firms who have not adopted e-commerce as part of their strategic initiatives will miss out on opportunities to attain growth and competitive advantage.
This is done by building and managing the blonde salad harvard case study pdf free chain that responds rapidly to changing market needs and demands. Strong control over its own distribution channel Strong customer base Strong financial adidas case study pdf with minimal long term debts Innovative designs in footwear enabling consumers to design their own shoes online Brand reputation and recognition Diversity and variety in products offered on the web footwear, apparel, sporting equipment, etc.
Another major barrier is security. Switching cost is low for the consumer, and may occur frequently depending on consumer preference and other factors affecting consumer buying decision, i. Firms are able to switch between suppliers quickly and cheaply, due to the globalize networks of cheap labor on various continents.
Significant amounts of money were involved and a constant chilled reaction was received from its channel partners like Footlocker and Sports Chek with each site redesign as latest design contained e-commerce - leaving some companies without Nike products to sell online. In terms of the e-commerce portion of the industry, Adidas with its web site design and functionality has narrowed the gap between the market leaders and the market follower.
The main purposes of acquiring relationships with pure-play e-tailers is to promote and market products; focus on the content to create new exposure and; gather, gain and transfer market knowledge to their business counterparts.
Most importantly, companies like Nike and Adidas have invested heavily into online brand building and image development. The brand image for both Nike and Adidas is immense; however Nike has attained a considerable competitive advantage due to its reputation for quality and innovation.
(PDF) Case Study - Nike vs Adidas, market and comprehensive | Ankit Shah - broadfoot.biz
The use of online tools has helped to enhance the accessibility and intimacy among users. This feat has been cultivated through continuous innovation and a broad product portfolio. Nike experienced a hijacking of its web site. But it is a fine balance as the larger retailers would not want to be eliminated and could combine efforts to ensure that they are not eradicated from selling athletic footwear form main firms.
The e-commerce presence required Adidas to adjust internally to be able to fully support and commit to this initiative. Case Title: The value configuration has multiple components. Attaining market share is important to both Nike and Adidas.
The value chain configuration for both Nike and Adidas is supply chain. Selling footwear online is highly competitive; however, barriers to enter into this e-commerce industry are quite low.
The capital injection into web site development is high and must be updated frequently with new promotions and added features to attract online shoppers. For example, Nike's "nikeid. New York. Bargaining Power of Suppliers - Low There are many suppliers in this industry. Nike launched the nike. For Nike to successfully remain as the market leaders, it must continue to innovate and produce leading edge designs that attract the diverse markets.
Although, there are perceived benefits in conducting e-business over the Internet there are also potential barriers. In today's high speed environment, one would be hard pressed to find a Fortune company conducting business with either other businesses or consumers to not have its own web site. Nike holds a lot of leverage because of its significant market share and could choose to exclude certain retailers without suffering decreased sales.
It will be full of successes, failures and partnerships between suppliers and retailers. Many online buyers are price sensitive and switching cost is low for the buyer. Businesses are developing web sites to provide their consumers and business partners with information and e-commerce.
Nike and Adidas have adopted a merchant model which encompassed three pillars of mark my sat essay e-commerce strategy: Rivalry among Existing Competitors - High The rivalry among existing competitors in the footwear the blonde salad harvard case study pdf free is quite high.
Today, Nike's store enables online consumers to design key elements of the master thesis astronomy they purchase.
The analysis below represents the web site positioning map which identifies some of the key performance criterion in determining the web site positioning strategy for both Nike and Adidas. Additionally, inputs are readily substituted and there are an abundant number of suppliers available. Adidas' value chain although slightly different, is similar in nature in comparison to the industry.