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Comparing and contrasting of

strategies of Nike and Adidas


Similarities in Strategy
1) Innovation:
Continuous focus on innovation
Emphasis on R&D

2) Process of manufacturing
Use of private contractors as supplier in low wage
countries
Great deal of power over suppliers

3) Pricing
Premium pricing strategy
Price of Nike is overall higher than Adidas
Adidas follows market skimming strategy
Cont.
4) Differentiation
Broad differentiation strategy

5) Distribution
Concentrating its products and resources where
there are clusters of customers
Online stores

6) Environment friendly approach


Focus on environment friendly products
Reducing waste during production
Differences in Strategy
1) Target Market
Nike: American market
Adidas: European market

2) Outsourcing Policies
Nike: Outsourcing from low cost countries
Adidas: Self production but recently shifted to
outsourcing
Cont.

3) Marketing campaign
Nike: Sponsoring Popular sportsmen and teams
Adidas: Sponsoring big events and organizations

4) Product endorsement Vs High performance


Nike: Focus on high endorsement of product
Adidas: Focus on high performance of product

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