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Mission StatementsMission Statements

NikeNike

To bring inspirationTo bring inspirationand innovation toand innovation toevery athlete* inevery athlete* inthe worldthe world

* If you have a* If you have abody, you are anbody, you are anathleteathlete

AdidasAdidas

To be the leadingTo be the leadingsports brand in thesports brand in theworldworld

*Impossible is*Impossible is

NothingNothinghttp://www.youtube.chttp://www.youtube.com/watch?v=EPO20Pkom/watch?v=EPO20PkSztESztE

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HistoryHistory

NikeNike

1964:1964:BowermanBowerman/Knight/Knight

1970: Waffle Iron1970: Waffle Iron

1972: Swoosh1972: Swoosh

1980¶s: Sport1980¶s: Sport

CelebrityCelebrityEndorsement & Endorsement & GrowthGrowth

1989 1989 Ind.leaderInd.leader

AdidasAdidas

1948:1948: DasslerDassler

1954: Soccer

1954: Soccer

1960: 31960: 3--StripeStripe

1984: Summer1984: SummerOlympics & Olympics & 

MainstreamMainstreampopularitypopularity

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Key LeadersKey Leaders

NikeNike

Chairman of theChairman of theBoard: Phil KnightBoard: Phil Knight

CEO Nike: MarkCEO Nike: MarkParkerParker

CFO: Don BlairCFO: Don Blair

President Nike Brand:President Nike Brand:

Charlie DensonCharlie DensonGlobal Operations:Global Operations:Gary M.Gary M. DeStefanoDeStefano

AdidasAdidas

CEO AdidasCEO Adidas--group:group:HerbertHerbert HainerHainer

Finance AdidasFinance Adidas--group:group:Robin J. StalkerRobin J. Stalker

CEO Adidas brand:CEO Adidas brand:ErichErich StammingerStamminger

Global OperationsGlobal OperationsAdidasAdidas--group: Glenngroup: GlennS. BennettS. Bennett

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Industry / ProductsIndustry / Products

NikeNike

Athletic ShoesAthletic Shoes

ApparelApparel

Sports EquipmentSports Equipment

AccessoriesAccessories

AdidasAdidas

FootwearFootwear

SportswearSportswear

Sports EquipmentSports Equipment

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Business StructureBusiness Structure

NikeNike

Five SubsidiariesFive Subsidiaries

±± ColeCole HaanHaan

±± ConverseConverse

±± Hurley InternationalHurley International

±± NIKE Golf NIKE Golf 

±± UmbroUmbro

AdidasAdidas

Two SubsidiariesTwo Subsidiaries

ReebokReebok

±± TaylorMadeTaylorMade

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Market SegmentsMarket Segments

NikeNike

RunningRunning±± FootwearFootwear

±± ClothingClothingGolf Golf ±± FootwearFootwear

±± ClothingClothing

SoccerSoccer±± FootwearFootwear

±± ClothingClothing

AdidasAdidas

Sport PerformanceSport Performance

±± FootwearFootwear

Sport StyleSport Style

±± ClothingClothing

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Competitive StrategyCompetitive Strategy

NikeNike

Premium PricePremium PriceStrategyStrategy

SponsorshipSponsorshipAgreementsAgreements

No ManufacturingNo Manufacturing

AdidasAdidas

Premium PricePremium PriceStrategyStrategy

SponsorshipSponsorshipAgreementAgreement

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Core CompetenciesCore Competencies

NikeNike

OutsourcingOutsourcing

AdidasAdidas

Implementation of Implementation of Joint OperatingJoint Operating

Model in EuropeModel in Europe

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Industry Trends / Key IssuesIndustry Trends / Key Issues

Nike / AdidasNike / Adidas

Sales are FlatSales are Flat

Low Consumer Confidence in the EconomyLow Consumer Confidence in the Economy

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Global IssuesGlobal Issues

NikeNike

2008: Trade with2008: Trade withChinaChina

China: Child LaborChina: Child Labor

AdidasAdidas

2008: Global2008: GlobalSports PartnershipsSports Partnerships

2009: International2009: InternationalDay of PeaceDay of Peace

2009: DJSI Winner2009: DJSI Winner

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Sales StrategySales Strategy

NikeNike

www.nike.comwww.nike.com

United States:United States:25,000 Retailers25,000 Retailers

International:International:Distributors,Distributors,

Licensees, andLicensees, andSubsidiariesSubsidiaries

AdidasAdidas

www.thestore.adidwww.thestore.adidas.comas.com

www.adidas.comwww.adidas.com

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Key CompetitorsKey Competitors

NikeNike

AdidasAdidas

New BalanceNew BalanceAthletic Shoe, IncAthletic Shoe, Inc

PUMA AG Rudolf PUMA AG Rudolf DasslerDassler SportSport

AdidasAdidas

NikeNike

AmerAmer Sports CorpSports Corp

Callaway Golf Callaway Golf CompanyCompany

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SWOTSWOT-- StrengthsStrengths

NikeNike

Swoosh LogoSwoosh Logo

InnovativeInnovativeTechnology FocusTechnology Focus

LIVESTRONGLIVESTRONGCampaignCampaign

NiketownNiketownConservativeConservativeFinancesFinances

AdidasAdidas

33--Stripe LogoStripe Logo

Purchased ReebokPurchased Reebok

to gain presence into gain presence inNorth AmericaNorth America

Leader in CorporateLeader in Corporate

Responsibility & Responsibility & SustainabilitySustainability

Buyer LoyaltyBuyer Loyalty

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SWOTSWOT-- WeaknessesWeaknesses

NikeNike

Male DominateMale DominateExecutive BoardExecutive Board

Labor CostsLabor Costs

AdidasAdidas

Male DominateMale DominateExecutive BoardExecutive Board

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SWOTSWOT-- OpportunitiesOpportunities

NikeNike

Growth in Men¶sGrowth in Men¶sFootwearFootwear

Recent Growth inRecent Growth inUS Market ShareUS Market Share

AdidasAdidas

Grow Reebok menGrow Reebok men

Continue PartnershipContinue PartnershipDevelopmentDevelopment

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SWOTSWOT-- ThreatsThreats

NikeNike

UnderUnder ArmourArmour

EconomyEconomy

AdidasAdidas

EconomyEconomy

US Market shareUS Market shareshrank 2009shrank 2009

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CORE COMPETENCY CORE COMPETENCY 

ADIDASADIDAS

TechnologyTechnology

Customer focusCustomer focus

Brand recognitionBrand recognitionSupply chainSupply chain

CollaborativelyCollaboratively

competitivecompetitivelaunches every sixlaunches every sixmonths between 600months between 600and 800 new designsand 800 new designs

in footwear.in footwear.

NIKENIKE

TechnologyTechnology

Customer focusCustomer focus

StrategicStrategicOutsourcingOutsourcing

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Financial AnalysisFinancial Analysis

NikeNike AdidasAdidas

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Global market sharesGlobal market shares

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AcquisitionsAcquisitions

NikeNike

1995: Bauer1995: Bauer

2002: Hurley2002: HurleyInternationalInternational

2003: Converse2003: Converse

2004: Starter2004: Starter

BrandsBrands2008:2008: UmbroUmbro

AdidasAdidas

2005: Reebok2005: Reebok

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Current EventsCurrent Events

NikeNike AdidasAdidas

2009: Cirque de2009: Cirque deSoleilSoleil

2012: London2012: LondonOlympic andOlympic andParalympicsParalympicsPartnership(upPartnership(upcoming)coming)

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Strategic Direction / ChangesStrategic Direction / Changes

NikeNike

2007: LIVESTRONG2007: LIVESTRONGChallengeChallenge

http://www.youtube.cohttp://www.youtube.com/watch?v=RDfCTJQm/watch?v=RDfCTJQTpXsTpXs

2009: Profitable Stock2009: Profitable Stock

Split 2 for 1Split 2 for 1

AdidasAdidas

2008: Beijing2008: BeijingOlympic PartnershipOlympic Partnership

2009: Business2009: BusinessRealignmentRealignment

2009: Sold $15.7 2009: Sold $15.7 million shares of million shares of 

stockstock2009: Cirque du2009: Cirque duSoleil PartnershipSoleil Partnership

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Customer survey report««Customer survey report««

0

2

4

6

8

10

12

Quality Durability Price Comfort Style Advertising Innovation

Nike

Adidas

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RecommendationsRecommendations

Nike AdidasNike Adidas

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Adidas NikeAdidas Nike

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BibliographyBibliography

AdidasAdidas ±± Impossible is Nothing. (2006, May 10).Impossible is Nothing. (2006, May 10).YouTube video posted by sktube. RetrievedYouTube video posted by sktube. RetrievedNovember 27, 2009 fromNovember 27, 2009 fromhttp://www.youtube.com/watch?v=EPO20PkSztEhttp://www.youtube.com/watch?v=EPO20PkSztE

Fredeen, B. (2000, Feb. 1). Knowing Nike¶sFredeen, B. (2000, Feb. 1). Knowing Nike¶sCustomers. Retrieved November 18, 2009, fromCustomers. Retrieved November 18, 2009, from

Fool.com.Fool.com.

Footwear Industry in USA. (2008). RetrievedFootwear Industry in USA. (2008). RetrievedNovember 22, 2009, from http://www.infomat.comNovember 22, 2009, from http://www.infomat.com

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BibliographyBibliography

Hoover¶s Inc. (2009). Company Discriptions.Hoover¶s Inc. (2009). Company Discriptions.Retrieved November 22, 2009 fromRetrieved November 22, 2009 fromhttp://www.hoovers.comhttp://www.hoovers.com

LIVESTRONG Challenge 2007 Video. (2007, JuneLIVESTRONG Challenge 2007 Video. (2007, June

1). YouTube video posted by livestrongarmy.1). YouTube video posted by livestrongarmy.Retrieved November 27, 2009, fromRetrieved November 27, 2009, fromhttp://www.youtube.com/watch?v=RDfCTJQTpXshttp://www.youtube.com/watch?v=RDfCTJQTpXs

Mehta, S. (2009, March 5). Fortune. Under ArmourMehta, S. (2009, March 5). Fortune. Under Armourreboots. Retrieved November 28, 2009, fromreboots. Retrieved November 28, 2009, from

http://www.money.cnn.com/2009/01/20/technologhttp://www.money.cnn.com/2009/01/20/technology/mehta_underarmour.fortune/index.htm?postvery/mehta_underarmour.fortune/index.htm?postversion=2009012613sion=2009012613

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BibliographyBibliography

40 under 40. (2009, October 22)40 under 40. (2009, October 22) FortuneFortune, Retrieved, RetrievedNovember 28, 2009, fromNovember 28, 2009, fromhttp://money.cnn.com/galleries/2009/fortune/09http://money.cnn.com/galleries/2009/fortune/0901.40_under_40.fortune/index.html01.40_under_40.fortune/index.html

Pienciak, M. (2009, September 2009). The MotleyFool. Nike¶s still got no bounce. RetrievedNovember 28, 2009, fromhttp://www.fool.com/investing/general/2009/09/

30/nikes-still-got-no-bounce.aspx?source=isesitlnk0000001@mtt=1.00

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BibliographyBibliography

Conerly, B. (2008, February 5). Seeking Alphawebsite. Nike strategy: divide and conquer .Retrieved October 19, 2009, fromhttp://seekingalpha.com/article/63099-nike-strategy-divide-and-conquer

Burke, M. (2008, January 17). Forbes Magazine. Onthe run. Retrieved October 19, 2009, fromhttp://www.forbes.com/forbes/2008/0211/082.ht

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