NIKE AND REEBOK

Nike and Reebok

Nike and Reebok

Introduction

This study is related to comparison between two companies that is Nike and Reebok. Nike is considered as the leading distributor, designer and marketer of athletic accessories, equipment footwear and apparel for a variety of fitness and sports activities. The company employs about 38000 people and has its head offices in Oregon and Beaverton. Nike recorded revenues of $ 20862 million in 2011 which shows 9.7% increase from 2010. This increase in revenue was mainly because of the major input from the Brand that is NIKE and also other businesses segments of the company. In comparison, Reebok is considered as comparatively small shoe business. With the competitors like Adidas and Nike, Reebok has been focusing on the market of aerobic shoe because of the emerging demand of aerobics among the customers. In 2011, the company established a long term strategic alliance with CrossFit. This strategic alliance focuses on a movement which eradicates the obscurity of the big gym as it entails fun and motivating the community, which delivered positive results. Moreover, the key purpose of the study is to focus on the following three main points:

Innovate to serve the athletes;

Innovate to inspire the world;

Innovate to grow the company.

Discussion

Nike and Reebok are about innovation; however, it is observed that Nike is more diverted towards innovation in comparison to Reebok. That is how Nike serves the athlete, reward its share holders and carry on to lead the industry where competitors like Reebok competes. Sport has been a desired way for individuals to relax or entertain. If you are not actively involved in it, you are sure to participate as a spectator and like everything in life, sport has rules and regulations including the clothing (Bibey and Vibe, 2006). Each person or team has different clothing consisting of trousers, shirts, shoes and accessories. In this context, Reebok and Nike are the most accepted and trendy manufacturers of accessories, sportswear and sports equipment.

Both Nike and Reebok are the major competitors in the athletic footwear industry, though the two companies have enjoyed immensely different success. Nike continues to expand its profitability and sales during a time when Reebok has made effort and lost market share as well as suffered financial downturns.

Reebok is the second largest sportswear manufacturer in the world, it manufacturers sunglasses, bag, T-shirt and other products related to athletics. In comparison to Nike, the company is distinguished ...