Athletic Shoes Industry - 4589 Words

Athletic Shoes Industry Strategy Comparison Report of Nike, Inc. and Adidas AG wei 4/30/2010 ABSTRACT This report is an analysis of the athletic shoes industry on both a global and U.S. market. This report is to analyze the external and internal issues facing this athletic shoes industry, and the companies that operate within it. This analysis includes a comparison of Nike, Inc. and Adidas AG who are footwear manufacturers in the world. However, Nike spent thirty years developing from the challenger position change to the challenged from Adidas. Rivalry among business firms grew more intense as the economy develops. This report will compare competitive advantages and distinctive competencies between two companies, and conclude†¦show more content†¦However, these countries also build their own athletic shoes brands to join to this big market. These athletic shoes companies have the cost advantage for basic need and these countries customer don’t have high consumption power. The local brand athletic shoes at low price are the best choice for them. Growth of industry The footwear industry includes the athletic shoes and non-athletic shoes. From 2004 to 2008, the athletic shoes market shares about 44% and keeps growing every year. (See Table 1) United States has more than twenty billions of dollars of athletic shoes market. Also global market has more than eighty billions of dollars. (See Figure 1) From 2003 to 2005, Athletic shoes market size-growth rate decreased from 12% to 6% in the global market. Furthermore in 2007, athletic shoes sales just had 2% increases from 2006. However, the athletic footwear market declined 3.2% in 2008 and dropped by 1.4% in 2009 in the U.S. market. The reason is the bad global economic environment happened at that time. Insert Figure 1 here Athletic shoes industry is highly competitive and has low growth rate in the U.S market. However, has been forecasted, the U.S and global athletic shoes markets will increase after 2009. (See Figure 1) The table shows that athletic shoes industry has 44% market share in all footwear market and keeps the low growth rate in every single year from 2009. In the U.S. market, the compound average growth rate (CAGR) (SeeShow MoreRelatedRyka, Inc.: Lightweight Athletic Shoes for Women995 Words   |  4 Pages( Ryka, INC.: Lightweight Athletic Shoes for Women Business and Industry Analysis ) Ryka is doing business of athletic shoes for women, which are made on the shape of a woman’s foot, and are designed and developed considering women’s unique fit needs. It is the only athletic footwear company, which is exclusively for women, by women, and now supporting women. 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