SWOT Analysis Findings
Nike is the world’s leader in equipment, sportswear, and of course athletic sneakers. As golf was introduced into Nike endorsements were used. “The company continued this strategy in 1995 by signing budding superstar Tiger Woods…”(Brna). The sport of golf may be one of the newest additions to Nike, but they thrive to compete against companies such as Adidas and Under Armour. Like Nike, Adidas and Under Armour completed a SWOT analysis on their organization and competition. Strengths
Adidas and Under Armour each have similar strengths like Nike, but they also have other strengths that set each apart from one another. Adidas and Under Armour are both financially strong. Adidas is present in over 200 countries and have a very wide product line, while its largest market is in Europe. Adidas is well known in sponsorships with soccer team, and has had its ups and downs in basketball, but currently they have risen with the endorsement of Derrick Rose of the Chicago Bulls.
Under Armour is a strong brand that targets men in sports and have a strong endorsement deal with Carolina Panthers’ Cam Newton. Their mission is “To make all athletes better through passion, design and the relentless pursuit of innovation”( Plank). Under Armour have an innovation and technology driven through its sports performance clothing design. Also, Under Armour earnings have made a significant increase in profit due to sponsorships of school and university teams, and serves as a sponsor for the Wounded Warrior Project. Weakness
Adidas has limited exposure to the US market and few influential athletes to endorse sneakers in all sports. Under Armour is still relatively new. Under Armour’s mission has a narrow focus and it is male targeted. As Nike is expensive, Under Armour follows suit with no reduction in cost with other competitors and reduces sales. Other brands are now offering similar styles that made them unique. Opportunities Adidas and Under Armour both could take advantage by expanding the international market with new products and service-lines.
Technology is a major part of this century, so e-commerce will help with expansion into other markets. At the present time increase in endorsements for Adidas and Under Armour can help bring in more people in a targeted age group. Under Armour can make competitive prices by lowering and by putting more focus on women because there is an increase in women in the sports workforce. Even though Under Armour is the newcomer to its well established competition, Nike, it can make expansions into to the global market to possibly create recognition as a larger brand. Threats
Like any other competitor, there is new technology being created for sport improvement. It’s just the matter of who (company) creates it first, the style and look of it, and if the product works. Nike, Adidas, and Under Armour are all threats to one another because they all have a common target, athletes and having almost the same product line. Under Armour is not a Fortune 500 like Nike, who was ranked 136 in 2012 (Fortune). This pose as a great threat to Under Armour, but with rapid growth these past years they sat at #51 for Fortune’s fastest growing business (Under Armour).
Adidas suffered a threat with the regulatory body of tennis. “Tennis’s governing bodies, following the lead of the Olympics, banned Adidas’ iconic three-stripe brand as it now appears on the company’s apparel”(Shank 60). Upon carefully analyzing Adidas and Under Armour, they would focus on developing strategies. This will happen by using the strengths and opportunities presented in my findings on the SWOT of Adidas and Under Armour in terms of marketing and distribution through pricing, endorsing, use of e-commerce, and focus of all genders and ages.