Adidas case study from the article

1. Name: Nida Barros ID: 6019088 Section: 11
Case Study 1.3: Adidas
Compare and evaluate Adidas’s and Nike’s global competitiveness and global
strategies
Both Adidas and Nike are known to be the biggest in the sportswear industry
for many years. They have been a rival since forever. Even though both are big, the
number of product type and the number of sale in each region are quite close. Nike
still leads the market, making more money and share than Adidas. Adidas suffered
from an economic boycott in Russia and the recessionin 2015 because they heavily
invest in retail there. Fortunately, China came in and gain more retail network which
benefits Adidas a lot in many aspects. Nike may survive in Russia but they face
another economic crisis which Adidas has coped up better in 2010-2011. Due to how
Adidas try to retool its Reebok brand that is also under Adidas Company which make
they lost focus on maintaining pace with Nike in 2012-2013. Maintaining both brands
seem to be a little too much to handle consider Adidas that already been number 2 in
the industry and have to maintain Reebok as well. Adidas may suffer more than Nike
but still leading the market in its home market Germany. They definitely spend more
money on marketing because of Adidas’ strong brand equity.
In term of competitiveness, both are close to one another. For global strategies,
Adidas seems to be more stand out. Consumers on both brands are those who do not
always buy the product for exercise purpose. The competitive environment in
sportswear is intense. There is a high risk of substitution but still developing

2. differentiation is difficult so Adidas find a way in selecting in endorsement in term of
building the differentiation. However, Adidas tends to invest more in raising
awareness more than Nike. They sponsored uniform for a popular football team like
Real Madrid, AC Milan, and world Cup-winning Spanish team as well as the UK
Premiership football as a vital marketing tool to showcase product since the UK
football is the most in-demand and watched in a global market. They didn't only do
sponsorship within European countries but also China, an Asian country as well.
Meanwhile, Nike produces for FC Barcelona. Another thing about Adidas is that they
used fashion designer to work on fashion position for the brand as well. This indicates
that they would like to expand more in term of product line and how this could raise
awareness as well. Sports but also a fashion.
Recommended region in the next 5 years
Asia-Pacific is recommended region since they were in the top 3 regions for
Adidas in 2014. According to the article, they are set to overtake this going forward
within Asia-Pacific. China can be the starter point within the region since China was
number 2 in term of the strongest market growth and market share in 2014-19 after the
USA which is outside the Europe market. China generated 26% of value in 2014
compared to 19% in 2006 which indicate that the number has leaped forward a lot.
However, in China, Nike is the leading brand which makes it number one target for
Adidas. Beside from China, within Asia-Pacific, there are also India and Japan which
were also on the list of 7 markets outside Europe. The fact that China is the sportswear
manufacturer is the key why China has a lot of potentials. Adidas has developed and

3. sponsored a lot of sports events also the sports facilities in China just to raise
awareness like in other countries that Adidas have done before. Including the retail
operations and store in China. Hong Kong can easily follow China’s Adidas plan since
they are part of China in term of an opening store and retail shop. Another country in
Asia-Pacific like Japan, India could follow China’s plan as well. In the case of India,
Adidas is the number one brand in India. The market in India is expected to see a
growth of 5% over 2015-20 and will show the fourth largest growth of all global
market. Again, just like how they have done in another country. Marketing
opportunities in India are huge. Nike has yet to enter this country in term of
manufacturing. Adidas do the supplying of uniform to India Cricket football team and
to the India Premier League. Beside from supplying the uniform to India football team
that is a similar path from another country, Adidas can include more retail store just
like in China since Adidas itself is number one in India.
Also, the Reebok stores have been closed down for 1,000 stores in 2012. From the
list of 7 markets outside Europe 2014-19, India is on number 3 in the list so I believe
that India still has a potential on back to open reebok store again or Adidas store.
For Adidas to become No.1 in the global sportswear industry
By being number one in the global sportswear industry, Adidas may take a look at
Nike operate or market its business since they are currently number one in the
industry. As Adidas lost its pace with Nike in 2012-2013, this indicates that Adidas
couldn't focus on both 2 brands at the same time and with the expansion in term of

4. fashion position. At this point, they should only pay full-time attention to Adidas. As
we can see, Nike only maintain its brand with no any subsidies under them and they
have been doing very well globally. Regarding how they hire fashion designer from
H&M and Zara, it is good to expand more but as we know most of the consumer from
both brands who purchased the product doesn't use them to exercise. That’s mean
consumer prefer product in sporty rather than fashionable like Zara or H&M. That’s
why people bought them. Sportswear is already the fashion and trend itself among
consumer. Adidas have sponsored a lot of China and European football team, events,
and facilities. They may find a way to be a sponsored for America sports team.
Whether national team or not since Nike is from America and they are the world
power country as well. People there are familiar with Nike more so by being a sponsor
for America sports team, American would be able to see more Adidas product through
an athletic player. It can be any sports such as football, basketball or American
football.