The web has provided consumers and businesses with enormous advantages by reducing the transaction time and increasing the level of convenience. As we leap into the twenty first century, it seems as though everyone is on the Internet and more companies are establishing an online presence to maintain their competitive edge. Along with high speed Internet connections, the Internet has become an essential tool for any business to compete domestically or globally. Businesses are developing web sites to provide their consumers and business partners with information and e-commerce.
This research was conducted insince this time, Adidas has comfortably moved to the second spot in this highly competitive industry. For Nike to successfully remain as the market leaders, it must continue to innovate and produce leading edge designs that attract the diverse markets.
One important point to highlight is the market share Adidas has gained since Adidas evolved from a minor player in the industry to the second biggest company in the industry. Strong control over its own distribution channel Strong customer base Strong financial position 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.
Integrating e-business to its existing line of business is a key advantage to both companies relative to its competitors. For Nike, to overcome the potential threats, they must continue to be innovative and explore opportunities globally.
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.
Furthermore, the information, such as demographics and preferences, collected from directly selling to the end consumers should be used to market new goods and products.
Their web sites are more sophisticated and enticing to browse, both contributed to their large marketing budgets. The capital injection into web site development is high and must be updated frequently with new promotions and added features to attract online shoppers.
There are many proprietary product differences in the industry therefore brand identity has an immediate competitive advantage.
The Nike and Adidas brand is well renowned globally and plays a major role in consumer decision making. Selling footwear online is highly competitive; however, barriers to enter into this e-commerce industry are quite low.
The capital requirement for setting up an online shop is comparatively lower than setting up a traditional bricks and mortar establishment. Therefore, the online footwear industry is highly abundant with hundres of online merchants.
Switching cost is low for the consumer, and may occur frequently depending on consumer preference and other factors affecting consumer buying decision, i. Another major barrier is security. Although, Nike and Adidas have invested millions of dollars into their web site, there is an industry wide problem of securing data over the Internet medium.
Hackers may potentially lacerate into the site and could retrieve sensitive data such as consumer profiles, credit card numbers, and other corporate data. Nike experienced a hijacking of its web site. The traffic from www. Therefore, companies like Nike and Adidas must continuously market their product and differentiate their brands against competitors, in order to increase sales and market share.
The use of online tools has helped to enhance the accessibility and intimacy among users. Brand identity plays a critical role in the buying behavior; strong identity will offer consumers trust and loyalty. Many online buyers are price sensitive and switching cost is low for the buyer.
Bargaining Power of Suppliers - Low There are many suppliers in this industry. Leather, rubber, and cotton are commodity items and are available abundantly in the market place. Conglomerates such as Nike and Adidas have a definite advantage and power over their suppliers. These suppliers become dependent on these firms as their means to survival.
Additionally, Nike and Adidas have standardized their input procedures pertaining to the materials used, their labor force, supplies, services, and logistics. Firms are able to switch between suppliers quickly and cheaply, due to the globalize networks of cheap labor on various continents.
Additionally, inputs are readily substituted and there are an abundant number of suppliers available.
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.
Consumers are not likely to substitute due to the performance specification of the product. For instance, a basketball player would not wear boots to play basketball. Therefore, there are no real substitutes for athletic footwear.
Rivalry among Existing Competitors - High The rivalry among existing competitors in the footwear industry is quite high. Large firms such as Nike and Adidas have grown immensely over the last two decades. Their global reach has expanded through all continents; this is attributed to the emergences of the Internet and e-commerce.Download-Theses Mercredi 10 juin Answer: Task 1.
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 This mini case study was first published in de Kluyver and Pearce (), chap.
8. Global Competition’s Changing Center of Gravity The rapid emergence of a number of developing economies—notably the so-called BRIC countries (Brazil, Russia, India, and China)—is the latest development shaping the global competitive environment. Gmail is email that's intuitive, efficient, and useful.
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It took place in Russia from 14 June to 15 July It was the first World Cup to be held in Eastern Europe, and the 11th time that it had been held in Europe. At an estimated cost of over $ billion, it. Read this essay on Nike vs Adidas. Come browse our large digital warehouse of free sample essays.
The competitive environment Nike is in is an intense environment featuring Adidas, Under Armour, Reebok, and others. The key to succeeding in the competitive environment is customer satisfaction.
Adidas nike case study - .