Nike and Adidas

Nike and Adidas

Because the heavy competition in the sports industry, the two biggest sport companies Nike and Adidas have not could just focus on selling sportswear and equipments. Organisations have to make different with each other and focus on brand values when operating brand strategies. In the 1980s, Adidas suffered strongly competition from other sports brand such as Nike and Rebook. The design and appearance was older than competitors. Nike gripped this opportunity to market as Adidas had once done. However, Adidas realized it and started to release new strategies from 1990s. Therefore, it is interesting to analysis similarities and differences of their brand and design strategies.

Until now, According to Andria's (2011) report, Nike is the world's largest maker of athletic footwear and apparel with a market value of almost $50 billion. In comparison, Nike's second rival Adidas has market value of $12 billion.

Brand model: 4-D branding model

The 4-D branding model was announced by Thomas Gad who divided four dimensional models which are functional, social, mental, and spiritual. The purpose of using this model is to understand the strengths and weaknesses of brand. Furthermore, 4-D branding put forward a great way to test prototype brands against future scenarios, and this is why this model is so useful and powerful. It is as a dynamic modelling tool that it is most valuable. It can just easily be used to create a new brand as to analyze the strategic options for established brands (Thomas, 2001).

Own unique 'brand code' or 'mind space' of companies can be created by this model. The brand code represents an organization's unique corporate DNA , which can be used to drive every aspect of the business - from product innovation to recruitment (Thomas, 2001). For my analysis, because Nike and Adidas belong to sport industry, the question how do they make differences and innovation for standing out has been a significant issue that is needed to deal with. Therefore, this model would be appropriate for my analysis.

0Comparison Nike and Adidas by 4-D branding model

Functional dimension

Adidas and Nike both cover most of sport field such as football boots, basketball, tennis and so on. Adidas intergrates Predator and SprintSkin technology into its shoes. Anthony (2011) states that it enhance ball swerve and control. Also it increases ball-feeling while reducing the overall weight. In comparison, the most basic cushioning material is used in Nike shoes. It provides adequate cushioning for the casual wearer.

Beside these sport aspects, Nike collaborated with Apple to launch the Nike+ range, which help runners to monitor their performance. This platform allows Nike to have a personal conversation with customers. It also acts as a laboratory that lets Nike study its customers' behaviors and patterns (Scott, 2012).

For recommendation, if brands in the same brandscape, being different or unique through using technology and collaboration with stronger companies that would be a success design and brand strategies.

Social dimension

In the contemporary business, the distinction between "trademark" and "brand" is important and illustrative. The Nike swoosh can be recognized equally well with or without word Nike (Thomas, 2001). In comparison, Adidas with the three stripes also has worldwide recognition.

Nike encourages the target audience to hard work