Question

Difference in Nike and reebok (writing a paper for both companies so please be expansive with answers)

1) Comparison with the companies

2) Porters Five Forces Model

3) Porters Competitive Strategy

4) Business Processes

just basic questions based on the companies overall. no case study

Answer 1

1) Comparison with the companies

Nike, a brand known for the ''high performing'' shoes built for professional sportsman, is sustaining its market share in that area. It is making effort in the popularizing of shoes for the design-fascinated consumer - an area where Reebok is leading. Reebok, products are still famous but experienced a slight dip following man other competitors in the market, is trying to revamp its sales with a new segment of shoes and other sports accessories built for enthusiastic athletes. Both the Reebok and Nike is known for their apparel, shoes and other products in common, however Reebok is slight ahead of the competition with a better segmented product line for example Cricket accessories (bats, balls, gloves, pads etc.), Tennis accessories, Badminton and even Kayaking, trekking tools and so on where Nike is behind this product line competition. In sports footwear alone, Reebok had around 26 % of the market share compared to Nike having around 23%. We may say that larger part of Reebok's issue is that unlike Nike, the company needs to master high performing footwear, as well as the fashion-driven end. There has been a considerable improvement in Reebok's strategy, however chasing to make upto Nike's image in light weight footwear for professionals. Nike's advertising strategy, by contrast with Reebok, has been widely appreciated for its transparency and clarity. Mostly all the ads covers serious athletes engaged in sport. Reebok's one of the athletic footwear, for example, is the sneaker having a bunch of artificial pipes in the shoe's sole claiming to rejuvenate if worn. Commented by some of the professional runners, though retailers showed interest in the technology for attempting to R&D the product, but looks a bit of a marketing gimmicks to them. Reebok and Nike change look and feel, cosmetic looks of shoes, fashion accessories every 6 months, following the same strategy the fashion world revamps to improve sales. Some comparison of popularity of brands:

Reebok: 57% POSITIVE OPINION, 8% NEGATIVE OPINION, 31% NEUTRAL OPINION - 96% HAVE HEARD OF

NIKE: 60% POSITIVE OPINION, 19% NEGATIVE OPINION, 19% NEUTRAL OPINION - 99%HAVE HEARD OF

2) Porters Five Forces Model

Category	Reebok	Nike
Industry rivalry There are multiple competitors in an industry, Nike and Reebok, firms have to race aggressively to keep up the popularity share and as a consequence, profits may decline.	High	High
Threat of entry There are few blocks to enter a high marginal profit line. Since higher the competitor lower would be the profits. Reebok and Nike will try to make a low state under this area.	Low	Low/Moderate
Bargaining power of suppliers Since the bargaining power of suppliers is low, buyers are required to pay less or buy higher quality of raw materials, which directly impacts profits.	Low	Low
Bargaining power of buyers Since Nike has a bargaining power as High, buyers can demand lower prices or higher quality for their product line. Reduced prices and stronger demand for good quality products results in lower profits for Nike. In contrast, Reebok has a better edge.	Low	High
Threat of substitutes Consumer can easily get a substitute product for Reebok or for a better price, or switch from one product to another, this result can be very threatening to Reebok, compared to Nike which is Low.	Medium	Low

3) Porters Competitive Strategy

Nike as a company has a moderate cost leadership strategy in its area. Some of the options it has in the industry for consumers to provide professional footwear, clothes and other accessories. Nike's product line are unique because it enable them to generate easy profit from other area rather than simply regulating costs. However, the hyper competitiveness of the few rivals like Reebok, Nike has ways that it does not have to do their high level to reduce costs as to increase their brand value and profit margins. Nike has substantial economies of scale. As the world's biggest owner of professional textiles and accessories, Nike is ahead of the competition.

Reebok's way to achieving long-term, consistent growth to produce brand story into life with their unique and iconic product line. Today, they are focused on key sports goods that create a variety in their consumers’ lives. From the gym to the roads - the important business is to win customers with these value add products along with rich storytelling and oath to be found wherever consumers are. Finally, Reebok will grow across business area. They will continue to grow apparel segment by producing the new icon of fitness.

4) Business Processes

Both Reebok and Nike are striving to simplify the business process is one way to increase process efficiency and cut down cost of production and management of product line. Reebok has identified the factor processes to check essential processes from a "checklist" and was able to improve business outcome. Nike on the other hand regularly redesign, modify, and rethink business processes to achieve cost, quality, speed at production, new product design, etc. Both the companies have their R&D team and centers where new product is designed, released to production. A slight advantage of Reebok is that when it was acquired by Adidas, their business process multiplied at multiple levels improving their product line and business process significantly. However, Nike is still a strong player in maintaining their product line, business process rolling efficiently. SOP development is important to business growth and popularity and that is the reason Reebok is master in this area. Nike on the other hand has a strong presence of business process management to help them streamline, and effectively manage key business functions - this is done for years.