Review of related Theories
This report is an analysis of Nike studio Wrap shoes to Adidas. In this report I will be using model concepts such as porter’s five forces and market structure.
I will be comparing how well Nike will succeed in comparison to Adidas and how Nike can overcome certain boundaries that may bring to a halt to the sales of their shoes.
I will be analysing what makes both of these brand work separately and what market each of these brands are in. As well as comparing these brands, I will be comparing how well the Yoga wear has done with their companies. I will be analysing why yoga wear has done so well and why sales have increased for yoga wear.
I will be comparing how well Nike has done in the market in comparison to Adidas and why each company has done well. I will be looking at why they are in competition with each other’s brands, and how Nike can use external influences and SWOT analysis to help them in the market.
Analyse the market and service/product using any appropriate models or concept [e.g. those covered in Business Environment / Marketing modules] and aim to reach a conclusion about the services / product’s likely success. Use secondary data and other evidence to support your analysis.
Nike is a very established company with stores all over the world it is known for its branding and advertising. It is a very popular company as it has succeeded over the years to make its own name. By people wearing their shoes all over the world not only for fashion but for sport purposes Nike has been able to develop into a colossal company. With main offices all over the world and different markets for different countries Nike is a well known and respected brand. Nikes Studio Wrap shoes are designed specifically for a niche market of sports using a mat such as yoga and Pilates or dance which needs specific shoes, in order to give the user a bare foot feeling. It is designed for a non-slip feel which you don’t get with wearing socks and it is hard to do such sports with shoes on as they are too heavy for it.
According to The Telegraph report (2012) which shows Nike is currently the present market leader with an 18% with £4.3 billion of the sportswear market. As stated by PRNewswire (2012) demand for yoga by women has increased with over 20.4 million participants over the last four years. It is also targeted at women though recently men are classified as yoga practitioners.
Studio Wrap shoes are in a very niche market and Nike needs to have a specialised marketing strategy to be able to bring these out as Adidas have recently brought out similar shoes to the Studio Wrap. Using basic marketing strategy Nike will be able to tell whether these shoes will succeed in the market. Nike needs to look at the strengths, weaknesses, opportunities and threats in order to tell whether these shoes are going to thrive in the market. Adidas’ yoga shoes have been able to evolve over the year’s allowing their company to bring more ideas into their shoes design. This is a massive threat to Nike as even though Nike is a recognised company Adidas already have a devoted market for their yoga shoes. By Nike brining in new shoes into the market this is a massive threat of entrance for Adidas.
Adidas and Nike have always been in competition as they have similar market they are always in competition on sportswear. Nike has other competitors but Adidas is their biggest as their company is as big as Nike.
Nikes strengths as a company are very vast and they maintain a high profit as an organisation. Weaknesses in Nike are slight as they have such recognition around the world the only thing that would bring their company down are social responsibility and the scale of the economy. Nike are known for not being very social responsible and are known for sweat shops in less economically