Nike Case Study

...

Six Terms Pertaining to Case

Six terms that are implicitly connected to the case are as follows. Pride, Hughes, & Kapoor state (2016) “An oligopoly is a market (or industry) situation in which there are few sellers. Generally, these sellers are quite large, and sizable investments are required to enter into their market.” This is exactly what the soccer apparel industry is, there are a few big companies that compete for almost of the soccer fans in the world. Pride et al., state (2016) “In business, a conflict of interest results when an employee takes advantage of a situation for his or her own interest rather than the employer’s interest.” Messi and Renaldo both two of the top 10 highest paid soccer players in the world wear either Nike or Adidas for the jersey of the team they are playing for and are then wearing the opposite brand on the shoe. This is a major conflict of interest for both Adidas and Nike, one which has yet to be resolved. Pride et al., state (2016) “Recruiting is the process of attracting qualified job applicants.” Recruiting valuable, well known soccer players is a huge selling point for both of these companies. Buying either brand is not so much about the brands itself but the famous soccer player who is wearing that brand. Levy states (2014) “A fan of U.S. Soccer might be more inclined to shop Nike, but if Jozy Altidore is your favorite player, maybe Adidas is your move.” Pride et al., state (2016) “Innovation is any product improvement that customers value over existing choices.” Nike and Adidas are constantly trying innovate their products to beat one other as well as other brands around the world. This is a huge strategy in trying to sell more products, such as lighter shoes that will make you run faster, or jerseys that have a cooling technology. Pride et al., state (2016) “Personal selling which is personal communication aimed at informing and persuading customers to buy a company’s products.” Personal selling is the main way the Nike is able to stay so competitive during the World Cup even though Adidas is the only sponsor. Nike gets thousands of people working for them to go to all of the places the games are playing to interact with the fans on a personal level. Nike also utilize this time during the World Cup for Pride et al., state (2016) “sales promotion which is the use of incentives to encourage purchase of a product.” Such as handing out free samples of their products to fans as well as coupons to get discount off of future purchases. All of these terms are important in different ways to help companies succeed if done right.

Communication Connection

The following is a fictitious scenario in which a manager is to draft an email that is to be sent to a Nikes representative whom will from now on will be referred to as Bob. The manager and Bob have a good personal relationship as well as an informal agreement to feature Nike’s products in the highly visible front window. This email is to inform Bob that the manager is planning on displaying Adidas in the front window for the upcoming 2010 World Cup.

Dear Bob,

It has always been a pleasure doing business with you. I am excited for the opportunities of increased sales, with the advent of the 2010 World Cup. In light of Adidas being the exclusive sponsor the 2010 World Cup, I would like to let you know that we will be featuring Adidas during the World Cup in the high visibility front window area.

However this is only a temporary change in display during the World Cup. Due to our long standing personal and business relationship, I have made special efforts in displaying Nike products in prime locations throughout the store. Rest assured, there will be continued prime visibility of Nike products throughout the World Cup.

I look forward to hearing ideas and suggestions you may have to make the 2010 World Cup even more rewarding and profitable for the both us.

Sincerely,

Lauren Taylor

Conclusion

For me Adidas will always be on top in the soccer world because they started as a soccer company and still today are mainly focused on soccer. However at the end of the day personally to me it doesn’t matter if Nike or Adidas is on top in the soccer world. Why, because both of them are going to sell and promote to millions of people around the world gear for the game of soccer, therefore getting more people interested in the game itself. As long as both companies are following proper laws and staying as ethical as possible, I say game on. More competition leads to better prices for consumers, which in turn gets more people interested in buys the products, which really is the end goal of both companies, is it not?

---------------------------------------------------------------

References

Barnes, S. (2014, June 27). The World Cup of Marketing Part 1: Nike Vs. Adidas. Retrieved April 13, 2016, from http://blog.marketo.com/2014/06/the-world-cup-of-marketing-part-1-nike-vs-adidas.html

Katje, C. (2014, June 09). Adidas Looks to Beat Nike for Soccer Dominance in 2014 World Cup. Retrieved April 12, 2016, from http://www.thestreet.com/story/12736727/2/adidas-looks-to-beat-nike-for-soccer-dominance-in-2014-world-cup.html

Levy, D. (2014, June 4). Which Apparel Co. Has Most World Cup Talent? Retrieved April 12, 2016, from http://bleacherreport.com/articles/2080442-adidas-vs-nike-vs-puma-who-has-the-most-talented-roster-at-2014-world-cup

McDuling, J. (2014, July 12). Adidas won the World Cup battle, but Nike is winning the soccer wars. Retrieved April 12, 2016, from http://qz.com/233611/adidas-won-the-world-cup-battle-but-nike-is-winning-the-soccer-wars/

Parker, S. (2014, November 7). Nike vs Adidas: A league of their own. Retrieved April 12, 2016, from http://www.worldfinance.com/home/a-league-of-their-own-nike-vs-adidas

Pride, W., Hughes, R., & Kapoor, J. (2016). Business MindTap. Boston, MA: Cengage Learning.