Nike Analysis

Introduction

Nike is a leading provider of sportswear retailing in most parts of the world. Nike Company has about 20,000 retail accounts in the USA alone. The Nike Company has independent distributors in Asia, Africa, among other continents. It has contracts some 110 countries. It does this in a bid to increase its market presence in most parts of the world. Of course, the overall aim is to have a huge market share and compete with other sportswear companies such as Adidas and Reebok (Frisch, 2004). The company has endorsements with different companies and football clubs. All these are measures that the company uses as marketing strategies. The company has agreements with internet companies such as Yahoo and Google. It uses them as a marketing platform for its products. It operates within different companies and subsidiaries. It entered the market originally with different footwear designs. It also deals in apparel designs such jerseys for different football teams and designs sports gear for other games as well (Carbasho, 2010). The company produces running shoes with their trademark logo "Nike" inscribed most of the labels they produce. Today, the company's logo has grown to include a large range of leisure and sportswear. All this is endorsed by famous sporting personalities such as Tiger Woods.

The Company is recognized by the Federal Statistical Classification Agencies that classify business establishments in the United States. This is the body that is charged with collection, analysis and publication of statistical data relating to the businesses within the USA. According to North America Industry Codes, Nike has the code 316211. 31 denote Footwear manufacturing Industry. 62 denote Rubber while 11 denotes plastics. In short, Nike falls under Footwear Manufacturing industry according to NAICS Codes.

Products

Nike Company designs, develops and markets high quality and active sports equipment, apparel, as well as other accessory products. The company produces several brands of shoe styles every single day to keep up to speed with different needs of its customers. It deals in trends that appeal to different tastes of its customers. This is perhaps a critical success factor for the company. Different customers have a variety of products to choose from. They strive to meet current standards by studying the market and carrying out feasibility studies about new products, a measure that ensures they stay ahead of their competitors.

The management of the company ensures that they have closer working relationships foe effective deliberation of duties. The products are of high quality; guaranteed standards that ensure customer loyalty in their products. Nike ensures that it makes products that satisfy the needs of different segments of the market. For instance, it makes products for children, women and men. Presently, the company sells shoes for all ages; about 300 designs of athletic shoes; has 900 styles that target various sports market. It manufactures shoes for both males and females aged between 18 and 35.

Major Competitors

Nike faces stiff competition from sportswear giants Adidas, Reebok and TaylorMade. They sell the same products as Nike. This makes the competition stiff. The company has issues with the old continuous marketing. They have to do this is they have to assess the market. This will mean that they change strategy and tact in order to maintain their market share in the sports market. Originally, the company owed much of its success to the collaborations with other companies. To ward off competition, Nike expanded its sports and fitness industry into markets where it was not strategically placed. The management of the company decided to initiate more aggressive programs and review product partnerships. Below is a brief overview of the sportswear companies that compete alongside Nike.

Adidas

Purpose: To produce and distribute apparel, equipments for sport and footwear, adjoining field products and commercialization of the Adidas registered trademark.

Mission: To manufacture leading sports brands in the world. They have the attitude of "impossible is nothing". This is the attitude that drives their brand communication initiatives and helps to strengthen their bond with customers (Peng et al, 2007). It is the main competitor that Nike Company faces.

Reebok

Mission: The mottos "always challenge" and "lead through creativity" affirms their uniqueness in provision of different and unique products in the market. Focus: They focus to become a brand that is consumer-driven. They emphasize on the individuality of a buyer. So far, they have endorsed big names such as Alexander Ovechkin, Sidney Crosby and Allen Iverson (Reebok International Ltd & ICON Health & Fitness, 2004).

TaylorMade

Mission: To have the best golf brands in the world. They revolutionized golf by bringing metal-wood category of golf. Today, it has the biggest market share in this category. They strive to extend improve positions of their brands. They hope to develop and implement advanced technologies in all the products they deal in such as balls, clubs, apparel and footwear. Currently, they endorse a total of 55 professional golfers, some of who have been ranked number one in the world (Gibson & Gibson, 2004).

The three competitors control favorable share of the Sportswear market. According to reports released, Adidas controlled 10.1% share of the market; Reebok 9.9% and TaylorMade 0.8% of the Market.

Industry Structure

Overall, Nike has leading share of the market, but faces fierce competition from Adidas and Reebok, being its closest competitors. In terms of sales, Nike still controls the market by selling more of sports apparel, shoes and sporting equipments. It has the highest number of endorsements and can be considered as number one in the sportswear industry. Nike and Reebok were the companies that asset the standards with each competing with the other toe-to-toe. In the recent decades, Nike has grown in leaps and bounds. In the recent years the popularity of the competitors has risen. The Adidas group, under the leadership of Armour, has gained tremendous ground in terms of sales and release of new products into the sports market.

Nike achieved mush of its growth in the 1990s. This was due to the fact that the internet turned the world into a global village. It took advantage of the weakening sales in some companies and strategized to take advantage of the loopholes at the moment. The growth of technology also meant that they could produce new designs to meet various needs of customers. The company