Competition in the sportswear industry

Competition in the sportswear industry This report is about a competitive analysis watch based on competition in the sportswear industry, dominated by Nike Inc., followed by Adidas and Puma. The article with the title, Competition comes to a Head for World Cup Sponsors was published on The New York Times on 6th June 2010. This report discuss about the competitive strategies adopted by Nike, as the market leader. Porters five forces of competition framework have been used to analyze the competitive advantage Nike has over its rivals. The objective is to understand the aggressive level of competition within the industry and also how firms try to dominate the market, through cost cutting and innovation. Company Background Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. When Nike co-founder Bill Bowerman made this observation many years ago, he was defining how he viewed the endless possibilities for human potential in sports. He set the tone and direction for a young company created in 1972, called Nike, and today those same words inspire a new generation of Nike employees. Nikes goal is to carry on Bills legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders. Along the way, Nike has established a strong Brand Portfolio with several wholly-owned subsidiaries including Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd. The mission of Nike is: to bring inspiration and innovation to every athlete* in the world. Nike maintains traditional and non-traditional distribution channels in more than 160 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States). They utilize over 20,000 retailers, Nike factory stores, Nike stores, Nike Towns, Cole Haan stores, and internet-based Web sites to sell their sports and leisure products. Nike Inc. attains their position through quality production, innovative products, and aggressive marketing. Nike acquired Umbro in 2007. This acquisition indeed became the first decisive marketing goal of World Cup 2010. Nike has 10 World Cup contenders including Brazil, Portugal, Netherlands, Australia, Slovenia, New Zealand, U.S.A, Korea Republic, Serbia, and the deal with England and Umbro, which Nike maintains as a separate brand. The England and Umbro deal is the most Lucrative in international soccer, valued 34 million ($ 40.7 million) a year according to Sport+Markt, a research firm. This deal was a new determination for Nike to challenge Adidas, the German soccer apparel powerhouse, on its European home ground. Nikes continuing relationship with Brazil is worth 22 million a year. Competitor Analysis Adidas and Reebok breathing down the companys neck, the heart of the Adidas product line is athletic shoes, but the companys iconic three-stripe logo appears on apparel and other jock accessories. As the No.2 maker of sporting goods worldwide behind Nike, Adidas has inked deals with football and basketball athletes, as well as the New York Yankees, and it serves golfers through its Taylor Made-Adidas Golf. The company operates some 2,200 retail locations under the Adidas and Reebok banners. Adidas, which boasts the official match ball (named Jabulani) for the 2010 FIFA World Cup, expanded its business and breadth when it bought Reebok for some $3.8 billion. Nikes rival PUMA is another leading sport lifestyle company that designs and develops footwear, apparel and accessories. PUMA starts in Sport and ends in Fashion. In soccer, PUMA is the official supplier to 7 world cup teams including defending world champion Italy, Uruguay, Switzerland, Ghana, Algeria, Cote dIvoire and Cameroon. PUMA Vision states that, we are committed to working in ways that contribute to the world by supporting Creativity, Safe Sustainability and Peace, and by staying true to the values of being Fair, Honest, Positive and Creative in decisions made and actions taken. PORTERS FIVE FORCES 1. Barriers to Entry The threat of new entrants to the profit potential of sports accessory and athletic shoe manufacturers is minimized through high entry barriers. Due to large scale production, high cost on research and development and extremely large capital investment on innovation, factories and stores has made Nike able to control its cost and retain performance advantage over emerging competitors. 2. Bargaining Power of customers Relative to the number of firms in the industry there are a large number of buyers in the market with high bargaining power. Therefore in order to increase sales and market share, firms need to continuously market their product and differentiate their brands against competitors. The recent emergence of e-commerce and online shopping has helped enhanced the accessibility and intimacy among consumers. For example, NikeiD allows customers customize and design their own footwear by permitting customers to specify the desired colours and options to personalize the footwear with their name. Brand identity plays a critical role in the buying behaviours, as it offers customers loyalty and trust. 3. Bargaining Power of Suppliers Abundant numbers of input suppliers are available in the sportswear industry. There is little differentiation among the suppliers which makes the suppliers bargaining power low or non -existence. Input items such as Leather, rubber, cotton and plastic are available in large quantities. Nike has a definitive advantage and power over these suppliers when they become dependent on these firms as their means to survive. Nike have standardized their input procedures pertaining to the materials used, their labour force, supplies, services and logistics. Due to global networks of cheap labour on various continents, firms are able to switch between supplies quickly and easily. 4. Threats of substitutes Due to little alternatives to switch between, within the sportswear and athletics footwear industry, buyers propensity to substitute is low. For example: Nike shoes are designed to improve comfort and personal safety during periods of increased movements. The possible substitutes for footwear could be boots, sandals, bear feet or dress shoes, which however cannot be replaced for sporting purposes or for athletics. Hence, there are no real substitutes. 5. Competitive Rivalry within the industry There is countless number of competitors in the global arena for Nike. However not all companies have the power to compete with Nike. But few major competitors such as Adidas and Reebok, Puma, Joma, Legea and Brooks exist. These companies signed up in the World Cup arena are more evenly matched than ever. With 32 teams participating in the world cup, 12 teams including Argentina, France, Germany and the host nation South Africa wore Adidas on them, and Adidas was the official sponsor of the world cup. According to Hartmut Zastrow, executive director of Sport+Markt Adidas is still slightly ahead of Nike, on awareness and they have defended themselves well, but Nike is pushing aggressively. The fat checks from Nike and Adidas have not entirely priced rivals out of the market. With Nike and Adidas playing the equivalent of a possession game, the third-biggest soccer sponsor, Puma, has exploited unexpected openings in its rivals defenses an opportunistic strategy modeled on the playing style of Italy, Pumas biggest sponsorship. Puma is spending an estimated 30 million this year to sponsor teams in the 2010 World Cup, compared with 104 million for Nike and Umbro together and 85 million for Puma was also forward-looking in its recognition of the marketing potential of aligning itself with African national teams, long before South Africa was chosen, in 2004, as the first World Cup host on the continent. In 1997, Puma signed up Cameroon, and it has strengthened its ties to Africa since then. Equipment manufacturers logos are the only branding allowed on World Cup soccer jerseys, in contrast with professional club soccer shirts, which generally also include another prominent sponsor, like a gambling, electronics or car brand. That means even lesser known labels can stand out. Joma, a small Spanish provider of athletic gear, has high hopes for its sponsorship of Honduras. The company expects its sales to rise 40 percent in that country this year and 15 percent in the United States, which has a large Honduran community, a spokeswoman said. Brooks, a U.S. maker of running shoes is supporting Chile. Legea, an Italian provider of sports equipment had signed an agreement to supply uniforms to the North Korean team, which is in the World Cup for the first time since 1966. Self-Evaluation: Nike has planted itself firmly on the global business arena and appears to be a role model for other sportswear rivals. They have proved to be innovative, smart, environmentally friendly, and consistent with their product effectiveness and differentiation. For the company to continuously grow and sustain its competitive advantage, it is essential to invest on innovation and new products development that creates a need for the consumers. Nike appears to be a stylish, comfortable, and a reliable giant supplier with varieties of product line. The most informative part of this assignment was learning about capital investment firm make in order to dominate the market. There is also evidence of Hypercompetiton or rather cut throat competition within the industry amongst the major market challengers. Nikes attempt to snatch Germany away from Adidas, a German brand and the lucrative investments on acquisitions and sponsorship are evidence of desperate challenge for sustaining its dominance i n the market. Conclusion: From equipping athletes with the finest sports equipment in the world to continuously improving their financial performance, Nike dominates its competitors. Despite a changing marketplace for athletic footwear, Nike continues to expand its product lines and marketing reach to become a more powerful global brand. Due to the product differentiation, brand identity has an immediate competitive advantage. Aggressive promotions and advertisements also contribute to the success of Nikes well establishment in the industry. Nike has signed France to a seven-year deal and it will pay the countrys soccer federation more than 40 million a year to maintain hard grounds on its position for the next tournament, in 2014 in Brazil. The agreement will leapfrog France past England, making its shirts the most lavishly sponsored uniforms in international soccer.

Evangelism and my Christian walk Essay

Evangelism is a passion of mine and this semester has helped me to develop more as a person and strengthen my passion for evangelism. Usually when you hear the word Evangelism most of the time, you will start to fear because of rejection. During my Christian walk, sometimes I have experienced the fear of rejection as it relates to Evangelism. However, this semester has taught me not to fear.† Evangelism is standing up for your faith even if everyone else remains seated 1(Earley and Wheeler p.32)†. This semester I have learned and developed new perceptions and challenges about evangelism, which has challenged my way of thinking. At first glance, when you hear or see the word evangelism you immediately think about sharing the gospel and that is true. That is only one part of Evangelism because listening is very important as well. This has caused me to think differently about Evangelism because now I understand how important it is to listen to people while witnessing. Evangelism can be challenging but the way I look at it now is that I have a part in fulfilling the great commission at all cost. Evangelism is about relationship building that involves changing a person ability to trust and receive the gospel. This course has reminded me that Evangelism does not come without great sacrifice. It requires you putting forth effort and work to share gospel with someone that does not believe. Anytime you deal with people and sharing the gospel you have to be patient. It has challenged me to become an effective witness for Christ because as I grow spiritually it is a reflection of Christ. This semester has reminded me that there has to be a balance between the incarnational and information Apologetics. Many people say that Christians are hypocrites because their lifestyle does not line up with what they are professing. My lifestyle should reflect what I am professing in my Christian walk. The scripture tells us in James 1:23-24 and it says: 23 For if any be a hearer of the word, and not a doer, he is like unto a man beholding his natural face in a glass:24 For he beholdeth himself, and goeth his way, and straightway forgetteth what manner of man he was. 2Therefore, many times people will not pick up a bible and read it but they will look at my lifestyle of a Christian. As you go through a course like this, it will cause you to look within to see if you are doing your part to help further the Kingdom of God. This semester has challenged me in so many ways to seek God more than ever and pay closer attention to the needs of others. God has called each one of us to spread the gospel whether it is in the workplace, community or other countries. Sometimes we forget the importance of evangelism and just leave it to the Pastor or other ministers. However, as part of the body of Christ, I have to be willing to hold myself accountable and be willing to meet the needs of others. Learning to love people where they are is very important and this course has showed me that I have to go where the needs are. Evangelism is investing your time to minister to others and there is a great reward seeing someone gives their life to Jesus. At times, I have taken the need to listen to others for granted but listening is important to the lost. â€Å"Never underestimate the role of listening in building an evangelistic relationship,†3 (Earley and Wheeler, p. 123).The scripture teaches us in James 1:19: Wherefore, my beloved brethren, let every man be swift to hear, slow to speak, slow to wrath. 4Through this course, I have found that barriers can hinder you from being effective in servant evangelism. As it relates to my Christian walk, I have found that I have to confront those barriers that hinder me in my serving. Sometimes we can think we are super Christians and do not have any problems or need help. Nevertheless, it is a good idea to be transparent to those that do not believe and let them know you can relate to them and love them where they are. This semester has been  a revelation for me in my spiritual walk and building relationships with others. I have taken what I have learned in this class to bless others and encourage them that they can make it because God loves them. During the times of witnessing and servant hood, I have found so, many people that just want someone to listen and love them. My perception of people has changed because now I feel that I am more compassionate now, sensitive to the needs of others, humble, loving, and willing to be servant. My Vision for Evangelism My vision for evangelism is denying self to serve and be reflection of Jesus as I minister and love others. I would like those attributes to be a part of my daily life and walk in the fruit of the Spirit so, that other people will feel the love of God. I have gained so much knowledge from this course that I can take what I have learned and apply it in my own life to become a better person and to help others. In my Christian walk, my vision is to look for ways to be a blessing to others and to make an impact in my family and community. Also, ministering the word of faith thereby, changing mindsets and lives. Therefore, to help equip the believer so that it will cause them to live according to the word of God. However, there are a few changes I feel that I need to make in my life to be more effective as a witness for Christ. Some of the changes include reading the word of God more, seeking God’s way, being obedient, and trusting God. I can make an impact in my family by living the word of God before them and loving people where they are. Sometimes reaching your family can be hard but I believe that if I will be sensitive to the leading of the Holy Spirit and trust God, I can make a difference in their life. Evangelism is a way of life for me and it is priceless. I count it an honor to take part in what God is doing in some else life because at some point I was where they were. I remember that someone took time out to witness to me and let me know that there is hope in Jesus. Therefore, I am thankful to God for allowing me another opportunity to change and get on the right course. Role as a servant Servant hood is about demonstrating the character and qualities of God. Taking on the heart of servant requires unselfishness, not looking for promotion or pay, honors God, and reflects Jesus. My role as a servant  requires humilty, sacrifice and it breathes the very heart of God. We can consider the humblest servant of all; Jesus despised, mocked, and rejected. Serving can be hard but it means I am putting God’s plans and purpose above my own. Being a servant can affect my ministry in so, many ways by having these characteristics making myself available to God to serve, do what is needed, even when it is inconvenient, see interruptions as an opportunity to practice serving others, pay close attention to the needs of others, and no task is beneath me. The scripture says in Matthew 23:11-12, 11 but he that is greatest among you shall be your servant.12 and whosoever shall exalt himself shall be abased; and he that shall humble himself shall be exalted.5My attitude as a servan t will determine how I see things and the effectiveness of my servant hood. You should be able to identify a servant with Jesus because of the lifestyle he or she lives. Another important Characteristic of a servant is that I need to be open and teachable and sharing the gospel with joy. â€Å"True ministry to others, ministry that was modeled by Jesus Christ, requires you to minister as a servant†6 (Leach and Wheeler, p.5) A servant must have a willingness and desire to serve so, do not miss an opportunity to serve and provide some immediate relief for someone else. Many hurting people need what God has placed inside of you so you can be a blessing to others. Vision for future ministry God has placed some abilities in me that I can contribute to ministry, community and the marketplace. My future vision is to teach and empower believers in the state, surrounding areas and the nation in making disciples for Christ. I must lead by example in order to make disciples and it should be the responsibility of everyone to make disciples. I envision more unity in the body of Christ so; we can make an impact as we allow the Holy Spirit to change people’s heart and mind. The Scripture teaches us to tell others about Jesus Christ. In addition, while sharing the gospel is wonderful, it is simply not enough. We should continue to encourage and invest in new believers because many do not know where to begin to seek God. Evangelism will always be a part of my ministry and should be for other ministries as well. The way I look at evangelism is that if we stop evangelizing then the church stops growing both spiritually and naturally. God has commanded each of us to be a witness for him and we should not hesitate at this opportunity  to do his will. Some of my plans for evangelism include going out in the community and building relationships with people and lead them to Jesus. I would like to start a small group that will meet on a regular basis and have a nice fellowship but encourage each other. Sharing the gospel requires us loving as Christ has commanded us to do. I believe I have to stay focus on what God has given me to do. Most people are busy but not effective due to a lack of focus. Therefore, I cannot let someone else negative opinions of me become my reality. That is very important in evangelism because you may not always be received everyone all the time but I must stay focused. In the book Family to Family, it put emphasis on the family and individuals developing their relationship with Christ through some basic principles such as; spending time alone with God, prayer life, studying the word of God, accountability, and discipleship (Pipes and Lee, p.13)7 In conclusion, evangelism is a joyful experience, telling the good news; meeting people and helping them exchange their religion for a relationship with Jesus. It is my desire to spread the gospel with a passion to reach the lost with confidence and love. I believe as I continue to follow Jesus and be humble I can make a lasting impression on someone. I truly, have been blessed by taking this class and interacting with my classmates. Bibliography Earley, Dave, and David Wheeler. Evagelism IS†¦How to Share Jesus with Passion and Confidence. Nashville, Tennessee: B&H Academic Publishing Group, 2010. Fay, William, and Linda Evans Shepherd. Share Jesus Without Fear. Nashville, Tennessee: B&H PublishingGroup, 1984. KJV Holy Biblbe. Grand Rapids, Michigan: Zondervan, 1987. Leach, Richard, and David A. Wheeler. Minister To Others. Nashville, Tennessee: LifeWay Press, 2009. McRaney Jr., Will. The Art of Personal Evangelism Sharing Jesus In A Chaging Culture. Nashville, Tennessee: B&H Publishing Group, 2003. Pipes, Jerry Dr., and Victor Lee. Family to Family Leaving A Lasting Legacy. Lawrenceville,Georgia: Jerry Pipes Productions, 1999.

Whatever They Told You About Ibo Extended Essay Samples Is Dead Wrong...And Heres Why

Whatever They Told You About Ibo Extended Essay Samples Is Dead Wrong...And Here's Why Although thinking up the correct questions can be challenging, your supervisor can help you in the practice. You have to do effective research and create every minute count. Continue the good work!'' Begin the research possible whenever possible. You have to remember a protracted essay format demands an article of 4000 words. Also, ensure your 300-word abstract is very clear and briefly summarizes your entire argument. This kind of essay isn't the easiest one to handle. If you're worried about formatting your essay and you aren't sure of some things, then do read on. There are various reasons for which you may be asked to compose a protracted essay. Much like with every other sort of essay, there are lots of IB extended essay examples obtainable for free internet. There's also a kind of write-up that is known as a protracted essay. The next point to discuss is an elongated essay format. 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How Martketers Use Nonverbal Communication to Influence...

Outline Purpose: †¢ I want to show how marketers use nonverbal communication to influence consumer decision making process Introduction: †¢ Consumers dont even realize how heavily their decision making process is influenced by nonverbal communication Body Outline: †¢ Main Idea Nonverbal communication as a an consumer decision making influencer †¢ Physical communication †¢ Signs of communication (mechanical communication) †¢ Aesthetic communication †¢ Symbols of communication †¢ Supporting Material †¢ Experiments performed †¢ Statistics †¢ Other researches information Conclusion: †¢ Consumer Decision making process and nonverbal communication directly connected. Bibliography: †¢ Babin/Harris CB5 †¢ Professor Constanzo.†¦show more content†¦The US consumer engaged in a conversation with an Armenian, for instance, will likely instinctively try to obtain some space in the conversation by leaning backward at the waist as if an escape were possible! The differing approaches to space have implications for sales approaches, the way other consumers are depicted in advertising, and the design of retail environments. Another important component of nonverbal communication is body language. Body language refers to the nonverbal communication cues signaled by somatic (uncontrollable biological) responses. Consumers may use certain cues of body language when discussing issues with other consumers or salespeople. These cues can be more telling than the words that are spoken. Service providers sometimes receive training aimed at making them better able to guess which consumers will complain out of anger long before any negative words are voiced. Thus, if a customer’s reaction signals anger, intervention may actually turn the experience into something positive through proactive measures to remedy the situation causing the anger. In Japan and similar cultures, managing the appearance of one’s emotions becomes very important because one needs to avoid doing something that may shame another. If a Japanese consumer gives a gift to another person, the reaction in written and verbal communication means a great deal to the gift giver. Marketers also use chronemics to

How Martketers Use Nonverbal Communication to Influence...

Outline Purpose: †¢ I want to show how marketers use nonverbal communication to influence consumer decision making process Introduction: †¢ Consumers dont even realize how heavily their decision making process is influenced by nonverbal communication Body Outline: †¢ Main Idea Nonverbal communication as a an consumer decision making influencer †¢ Physical communication †¢ Signs of communication (mechanical communication) †¢ Aesthetic communication †¢ Symbols of communication †¢ Supporting Material †¢ Experiments performed †¢ Statistics †¢ Other researches information Conclusion: †¢ Consumer Decision making process and nonverbal communication directly connected. Bibliography: †¢ Babin/Harris CB5 †¢ Professor Constanzo.†¦show more content†¦The US consumer engaged in a conversation with an Armenian, for instance, will likely instinctively try to obtain some space in the conversation by leaning backward at the waist as if an escape were possible! The differing approaches to space have implications for sales approaches, the way other consumers are depicted in advertising, and the design of retail environments. Another important component of nonverbal communication is body language. Body language refers to the nonverbal communication cues signaled by somatic (uncontrollable biological) responses. Consumers may use certain cues of body language when discussing issues with other consumers or salespeople. These cues can be more telling than the words that are spoken. Service providers sometimes receive training aimed at making them better able to guess which consumers will complain out of anger long before any negative words are voiced. Thus, if a customer’s reaction signals anger, intervention may actually turn the experience into something positive through proactive measures to remedy the situation causing the anger. In Japan and similar cultures, managing the appearance of one’s emotions becomes very important because one needs to avoid doing something that may shame another. If a Japanese consumer gives a gift to another person, the reaction in written and verbal communication means a great deal to the gift giver. Marketers also use chronemics to