Strategic Competition in the Sneaker IndustryEssay Preview: Strategic Competition in the Sneaker IndustryReport this essayEXECUTIVE SUMMARYSince the birth of the Internet in 1969 to its commercial adoption in the 1990s, the World Wide Web has enabled businesses and consumers to connect with one another to exchange and share information, anywhere and anytime. The web has provided consumers and businesses with enormous advantages by reducing the transaction time and increasing the level of convenience.
As we leap into the twenty first century, it seems as though everyone is on the Internet and more companies are establishing an online presence to maintain their competitive edge. Along with high speed Internet connections, the Internet has become an essential tool for any business to compete domestically or globally. In todays high speed environment, one would be hard pressed to find a Fortune 500 company conducting business with either other businesses or consumers to not have its own web site . Businesses are developing web sites to provide their consumers and business partners with information and e-commerce. Large firms who have not adopted e-commerce as part of their strategic initiatives will miss out on opportunities to attain growth and competitive advantage.
The Web in the Twenty First Century
The most important point to understand about the Internet in the Twenty First Century is that websites are not really products; rather, web site, not just “the Web”, is not just a technology platform. There are many types of information technology, such as computer networks to be deployed and websites that are designed to support them. However, even though one knows that many industries and sectors change, the Internet is still only a small part of the product. The full scope of the e-commerce sector and especially the Internet of Things we use all affect our web experience. At various scale, e-commerce has become a huge part of the world and its future is certainly going to be quite bright! What is more, it has given our industry incredible opportunities to move up and down the scale of the industry and its future is certainly very bright. We also need to remember that the industry will most probably only benefit in the short term, and that not all information technology and other industries will take many of these changes from the one year after the Internet of Things has been invented on-going. Many industries are already creating online platforms for their own users. It should be noted that in the world of e-commerce, the industry is already growing enormously, and the global internet continues to grow at such an alarming rate that we will likely see large changes within the next couple of decades. Many of us had hoped to see our industries and businesses evolve one step back on and then a decade or so later, we would see this transition accelerate to its full potential. As they develop their businesses online, we will notice that many of the industries we have grown into have been already using the same technology and making new products. In some cases, such as Google, Amazon, Yahoo, Microsoft, and many others, existing content delivery systems with no Internet Explorer is still the best option. With Google and Apple, I have already witnessed their adoption of these same online tools. We will also see significant change within the “small group” within the e-commerce sector. Since Google and Apple have also demonstrated to their consumers that they can get more access to the Internet with more and more devices that are built for its products, it is no longer true only that e-commerce is a “small group”. All this will mean two things: that this ecosystem will likely have to change in the near term and that the large online competitors like Amazon and Apple will probably need to change their plans to get their products online quickly. We cannot predict the future and for good measure, we will likely have very little time before the end of the decade to see that this changes. Most e-commerce companies and companies have adopted e-commerce into the very beginning of their growth, and it is expected that will occur over time as the information technology industry moves through the same transitions that the digital industries have been through as well. More and more of our knowledge needs to be acquired outside the business and personal sectors, and we now have to understand that this data will not simply come from the consumer and the market and may or may not come from the business and individuals. But the Internet has played a part in the
The Web in the Twenty First Century
The most important point to understand about the Internet in the Twenty First Century is that websites are not really products; rather, web site, not just “the Web”, is not just a technology platform. There are many types of information technology, such as computer networks to be deployed and websites that are designed to support them. However, even though one knows that many industries and sectors change, the Internet is still only a small part of the product. The full scope of the e-commerce sector and especially the Internet of Things we use all affect our web experience. At various scale, e-commerce has become a huge part of the world and its future is certainly going to be quite bright! What is more, it has given our industry incredible opportunities to move up and down the scale of the industry and its future is certainly very bright. We also need to remember that the industry will most probably only benefit in the short term, and that not all information technology and other industries will take many of these changes from the one year after the Internet of Things has been invented on-going. Many industries are already creating online platforms for their own users. It should be noted that in the world of e-commerce, the industry is already growing enormously, and the global internet continues to grow at such an alarming rate that we will likely see large changes within the next couple of decades. Many of us had hoped to see our industries and businesses evolve one step back on and then a decade or so later, we would see this transition accelerate to its full potential. As they develop their businesses online, we will notice that many of the industries we have grown into have been already using the same technology and making new products. In some cases, such as Google, Amazon, Yahoo, Microsoft, and many others, existing content delivery systems with no Internet Explorer is still the best option. With Google and Apple, I have already witnessed their adoption of these same online tools. We will also see significant change within the “small group” within the e-commerce sector. Since Google and Apple have also demonstrated to their consumers that they can get more access to the Internet with more and more devices that are built for its products, it is no longer true only that e-commerce is a “small group”. All this will mean two things: that this ecosystem will likely have to change in the near term and that the large online competitors like Amazon and Apple will probably need to change their plans to get their products online quickly. We cannot predict the future and for good measure, we will likely have very little time before the end of the decade to see that this changes. Most e-commerce companies and companies have adopted e-commerce into the very beginning of their growth, and it is expected that will occur over time as the information technology industry moves through the same transitions that the digital industries have been through as well. More and more of our knowledge needs to be acquired outside the business and personal sectors, and we now have to understand that this data will not simply come from the consumer and the market and may or may not come from the business and individuals. But the Internet has played a part in the
Nike and Adidas are two primary footwear companies along with their competitors who have adopted an online e-commerce strategy to increase their sales and product awareness. Most importantly, companies like Nike and Adidas have invested heavily into online brand building and image development. Nike launched the nike.com web site in August 1996 primarily to provide information to its consumers. In 1996, there were no e-commerce capabilities present, however the web site served as a brand building tool for the company. In 1999, Nike redesigned their web site with expanded e-commerce functionality. Adidas launched their web site in the spring of 2000, which was later integrated with e-commerce capabilities during that summer.
Attaining market share is important to both Nike and Adidas. In order to maximize their market share, both Nike and Adidas have placed a great importance in developing their branding and marketing strategies on the net through web appearance and user friendly functionalities such as ease of purchase, speed, and navigation.
Nike and Adidas have adopted a merchant model which encompassed three pillars of their e-commerce strategy: pure-play e-tailer, bricks and clicks, and their online store. The main purposes of acquiring relationships with pure-play e-tailers is to promote and market products; focus on the content to create new exposure and; gather, gain and transfer market knowledge to their business counterparts.
The Internet has proven to be a useful tool for firms such as Nike and Adidas by increasing sales and reducing cost. But most importantly their web sites have provided them with an intangible asset such as market research and consumer buying behaviors. With the data retrieve from consumers, these firms are able to analyze and monitor the buying behaviors of their consumers. The data can also be used to exploit new marketing campaigns and promotions. Furthermore, the data collected can be used to produce innovative designs and improve their research capabilities.
Although, there are perceived benefits in conducting e-business over the Internet there are also potential barriers. The major barrier of e-commerce with respect to large firms such as Nike and Adidas is the technological barrier ranging from infrastructure to security. An ongoing battle the e-commerce industry faces is security. With time and additional research and resources, this problem will be mitigated. Meanwhile, both Nike and Adidas must minimize their technological risks.
While both Nike and Adidas currently have an essential advantage over their rivals, there are chances that their advantages will not last forever. The Internet has redefined competition therefore changing the evolution of competition. Although, Nike and Adidas have engaged in e-commerce there are apparent gaps within their e-business strategy. E-commerce is only available in restricted regions such as the United States and the United Kingdom, therefore opportunities exists within the global market to expand. The future will prove to be very interesting for both Nike and Adidas, and those who move quickly will dominate the market.
INTRODUCTIONA daring dream began in 1920 when Adi Dassler fashioned his first shoe in Herzogenaurach, Germany. In 1948, Adidas was founded along with its identifying trademark, the three stripes. From its inception, Adidas has faithfully adhered to three guiding principles embedded deep into its DNA: produce the best shoe for the requirements of the sport, protect the athlete from injury, and make the product durable. As time has passed, Adidas has evolved and is now one of the premier global leaders in sporting brands offering athletic footwear, apparel and accessories. This feat has been cultivated through continuous innovation and a broad product portfolio. With time, Adidas discovered that in order to continue to evolve further its strategy had to include the Internet. This led to the development of www.thestore.adidas.com, an e-commerce site focused on interactively profiling Adidass extensive product offerings accompanied by detailed product information.
Initially, what started as Blue Ribbon Sports in 1962 became Nike Inc. in 1972, based in Beaverton, Oregon. Nike was named for the Greek winged goddess of victory. The founders were Bill Bowerman, a track & field coach and Phil Knight, a runner under Bowerman. From their modest start, Nike has grown to be a global leader in the sporting goods industry. It is recognized as the worlds leading designer, marketer and distributor of athletic footwear, apparel, and accessories for a wide variety of sports and fitness activities. For Nike, an established and growing organization, a strong Internet presence felt like a natural extension to their already globally focused strategy. Today www.niketown.com, Nikes e-commerce site offers a unique experience, products and product information for its potential and existing customers.
ANALYSIS OF E-COMMERCEAttaining market share is important to both Nike and Adidas. In order to maximize their market share, both Nike and Adidas have placed a great importance in developing their branding/ marketing strategies on the net through web appearance and user friendly functionalities. The analysis below represents the web site positioning map which identifies some of the key performance criterion in determining the web site positioning strategy for both Nike and Adidas. The upper right quadrant indicates a high rating in both