Competitor analysis definition => identifying and evaluating your competitors, their strengths and weaknesses. Nike’s target market is largely consumers ages 15–45. Or reformers who are against sweatshops & want freedom would be an indirect competitor because … Indirect competition is the conflict between vendors whose products or services are not the same but that could satisfy the same consumer need. The report includes information on our findings: Honda's direct and indirect competitors. Nike, Inc. Common Stock (NKE) Stock Quotes - Nasdaq offers stock quotes & market activity data for US and global markets. … It reported a return to growth there last July, when it revealed Q2 gains of 2 percent to $843 million. NIKE operates in the sports shoe and garment industry which is one of the most competitive marketplaces. Considering the WE-Bra would be a new and innovative product, it would not have any direct competitors, but there would be a wide range of indirect competitors. The company is positioned for further growth. Therefore, they are direct competitors. As such, Nike needs to tread extremely carefully to ensure it isn’t replaced by one of these, or — somewhat less dramatically — doesn’t lose out on potential revenue. Nike spent $3.5 Billion specifically on marketing and demand generation in fiscal year 2020. The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited …. Nike has focused its marketing efforts on the digital space in recent years. However, the company must address concerns regarding competition, labor practices, imitation and patent protection. Examples of indirect competitors are McDonald’s and Applebees or Nike and Timberland. A few reasons: Branding with celebrity endorsements and global ads is expensive. The main Starbucks competitors’ analysis consists of the following brands: Direct Starbucks Competitors 1.Costa coffee: This is one of Starbucks’ biggest competitors. Many sellers of substitute goods and sellers of substitute goods are in indirect competition. Nike’s market share stands at about 27.4% in 2019, ahead of its industry rivals Adidas and ASICS, making Nike the world’s largest company in the global footwear market. Competitor analysis is a driver of an organization’s strategy and effects on how firms act or react in their sectors. Substitute goods are at least two products that we could use for the same purpose, i.e., to satisfy the same need. With higher competition ratio, Nike has to spend more money on marketing and advertising. Whether on the field of play, on social media … (Nike’s Q3 comprises the 13-week period ended Feb. In basketball shoes, Nike provides cushion and lightweight materials to accommodate the sport. It has to be an essential part of your marketing plan. Indirect Competitors Lyft . There are not that many companies who are “real” competitors to Apple, but most of the competition is catching up. Nike was originally known as Blue Ribbon Sports (BRS) and was founded by Phil Knight and his coach Bill Bowerman in January 1964. Opportunities and threats are external—things that are going on outside your company, in the larger market. Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 3 quarter 2020 year on year by -0.62 %, faster than overall decrease of Nike Inc 's competitors by -7.43 %, recorded in the same quarter. The top 10 competitors in Nike's competitive set are Adidas, Anta Footwear Company Limited, ASICS, Li-Ning, Lululemon, PUMA, Under Armour, VF, Fila, Skechers Usa Inc. But this week, Under Armour said its Q1 sales in the States dipped 3% as it continued to work toward more consistent gains — experiencing excitement around its HOVR franchise and in the run category. As of 2019, Nike has over 5 billion dollars revenue through shoes, apparels, merchandise etc. For example, an organic cosmetics company that is popular in Europe but that has no sales capabilities in the United States represents a potential competitor for American cosmetic firms. But when it reported third quarter results in March, investors appeared unimpressed with Nike’s 7% gains to $3.8 billion in the U.S. — sending its shares tumbling on the heels of the results. PUMA. Under Armour, meanwhile, is knee-deep in a turnaround plan after losing its stride around 2017 following a sharp ascension to the No. In its first year of business, BRS sold 1,300 pairs of Japanese running shoes that grossed around $8,000. NIKE Brand Valuation. Nike competitors analysis Who is Nike biggest competitor? Competitor analysis is a driver of an organization’s strategy and effects on how firms act or react in their sectors. Forget the NBA; it’s the playoffs for athletics brands, and top labels are going toe-to-toe for bragging rights on their home turf. Indirect competitors can of course also be found in exactly the same way. Televisions and PlayStations are other indirect competitors as they offer people alternative entertainment platforms for playing games and watching movies and news which reduces the use of the iPhone and hence its market share. Nike is a company that designs, develops, and markets footwear, apparel, equipment, and accessory products. The largest of these competitors are Nike and Adidas. Nike has 76,700 employees and is ranked 1st among it's top 10 competitors. The fourth quarter of fiscal 2018, reported last June, marked Nike’s return to more impressive growth in the region after a short-lived slowdown. Transportation of products can add to global warming. This information should then be used to improve your company’s efforts and take the advantage. Well since Nike is made in China or Vietnam, any big company that's offering those Nike workers to work for them instead would be an indirect competitor. Both brands range between £20-30 for their standard range,… Of course you can also search for and analyze your competitors using software. Together they have raised over 11.0B between their estimated 293.7K employees. Pepsi-Cola and Fanta, hamburgers and cheeseburgers, pizzas and fried chicken, are substitute goods. Nike is the larger business overall and the market leader in the global sports footwear industry with revenues from their footwear of over $24.2 billion in 2018, compared to Adidas footwear revenue of $15 billion. Compare DICK’S Sporting Goods to its competitors by revenue, employee growth and other metrics at Craft. With all the strong competitors, Nike has managed to hold the position as the leading brand however this does not mean that Nike does not have constant competitive pressures to face and other businesses to look out for. ), After a nearly two-year period of blockbuster gains, Adidas appears to be having its own “what goes up must come down” moment. Nike’s indirect competitors are Converse, Sketchers, K-Swiss and Timberland. Some of them are direct competitors while others are indirect competitors. Want to read more articles like this one? New products will also reduce the defection of existing customers of NIKE, Inc. to its competitors. Competitor analysis begins with identifying present as well as potential competitors. Nike is the best sports company because they have great technology and equipment to boost performance. (These are the competitors you most often think about.). All rights reserved. After a nearly two-year period of blockbuster gains, Adidas appears to be having its own “what goes up must come down” moment. Tagline/ slogan Band and Of Ballers; All … ... Influencers BMW Tesla Nike. When you identify competitors, you have three types to consider: direct, indirect, and replacement. Both are older companies with higher total annual sales than UA. Example: Where can I buy sneakers from Nike in Münster? This company was founded in 1962 by Bill Bower man and Phil knight as Blue Ribbon Support and later on it became Nike in 1978 (Partlow, 2003). 28. Disclosure: I own shares of NKE For years, US sports gear maker Nike, Inc. (NYSE:NKE) has delivered superior sales and earnings performance, handsomely … Powered by Adidas is Nike's #1 competitor … With a rich history of corporate responsibility, Deckers Brands embraces a holistic approach to doing the right thing. Competition. McDonald’s and Applebees are both restaurant chains, but McDonald’s is a … The level and intensity of competition in the sports shoe industry has grown very high driven by digitization and changing consumer trends. (Kernan also raised his price target to $23 noting improving innovation in footwear and apparel along with improved full price selling.). It is ranked as the second largest coffeehouse in the world after Starbucks and it is the largest in the United Kingdom. Adidas has the marketing power to expand its brand and positive brand standing within the industry: the company will sponsor the 2012 Olympics in London (London 2012 Olympic Partners). Nevertheless, in the hard-to-win North America market, Adidas has been riding the waves of a megaresurgence that started around 2016. Nike. Share Price. Strengths and weaknesses are internal to your company—things that you have some control over and can change. It was … Adidas, Nike, and Under Armour are competitors in the lucrative market for athletic wear. Counterfeiting. Although the latter spent an estimated $100m on the World Cup, many fans thought Nike was in fact the official sponsor . Incorporated in 1968, Nike has built a brand that has strengthened over the decades. Nike has 76,700 employees and is ranked 1st among it's top 10 competitors. Nike’s top competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, Puma, Under Armour, Skechers and New Balance. One of the biggest competitive pressures that Nike faces is the placement of their stores. Nike delivers innovative products, experiences and services to inspire athletes. Have a look at the sources of competitive advantage that have helped Adidas retain its leading position in the global markets. 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