Question

In: Operations Management

How are Nike, Adidas and Fila positioned in their industry? Which would you consider the best...

How are Nike, Adidas and Fila positioned in their industry? Which would you consider the best and does that brand’s positioning provide any emotional or self-expressive benefits?

Solutions

Expert Solution

From manufacturing accessories to all kind of shoes Nike has excelled in a lot of good things. It would be a sheer shock if someone in sports and athletics has not heard about the brand Nike. In mid -80’s the first Nike shoe came into sight named Air Jordan, a shoe specialized in Basketball.

Adidas- It was 1800. The first ever sneakers were produced with a simple rubber sole. And soon it became popular amongst the western culture. Now in 21st-century sneakers are the best shoes that one can have. From casuals, training, fashion and dancing sneakers are all that you can think about.

Fila was created in Coggiola, Italy, by the Fila brothers in 1911. It originally started by making clothing for the people of the Italian Alps, now manufacturing sportswear for men, women, children and athletes.The company's primary product was originally underwear, before moving into sportswear in the 1970s, initially with the endorsement of tennis player Björn Borg. The brand got more popular after moving into sportswear.

Things are getting pretty heated between Nike and Adidas right now. If you were to look at the books, it would seem that Nike is absolutely crushing Adidas. Their inventory and assets is valued at $86 billion USD. That’s a staggering number, and it’s hard to believe that Adidas could even come close to touching it.

However, Adidas’s deal with Kanye West has been steadily rocketing them to the top. Adidas even snatched up Houston Rockets star James Harden with a $200 million USD endorsement deal, thus challenging Nike in a space that they’ve dominated for a long time: basketball. You better believe that these two giants are about to face off. With that thought in mind let’s take a look at the history of the two companies.

Recently, Adidas has surpassed Jordan Brand as the second most popular shoe company in the US. Of course, this is a direct challenge to the top dog as Nike actually owns Jordan Brand. From the beginning of this year to recently, Adidas has dominated by capturing 11.3 percent of the U.S. market share. That’s about double what it had last year which was 6.6 percent. It is true that their growth is unprecedented, but it still has a long way to go to catch Nike who sits firmly at the top.

STRENGTHS

1. It has high brand value among the consumer.

2. It has been sponsoring major sports events including Olympics and sports team.

3. Adidas products are available worldwide.

4. Producer of wide variety of products; sports footwear, Adidas,bags, shirts, watches, eyewear, and other sports and clothing related good.

5. Strong workforce

6. Customer retention ratio is high

7. Impactful marketing strategies attracting consumers to buy Adidas products.

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I hope I answered according to your requirement. Please do give it a read. :)


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