Nike is one of the most successful manufacturers of athletic footwear, competing with Reebok, L.A. Gear and Adidas, as well as with manufacturers of casual footwear. In recent years, the company has expanded into the apparel market, to lessen its dependence on the highly fickle athletic footwear market, and has also seen significant opportunity in the international arena. Nike survived the stagnation in the industry of the early 1990s well, and is now one of the strongest companies in the industry from a financial standpoint. Adidas is a much older brand than Nike, and has suffered through a rift between its founders as well as intense competition from companies such as Nike, but it emerged at the end of the twentieth century as a strong brand in the athletic shoe market. Both Nike and Adidas have brands which are easily recognized around the world. Nike's "swoop" and Adidas' three stripes are protected and enforced by vigilant marketing groups at both companies. However, both companies have also been tainted by the recent labor issues in Asian factories which were brought to light in the late 1990s. This research examines the competitive position of the two companies, their labor issues, and how each company should proceed in coming years.
Nike was begun in 1964 as Blue Ribbon Sports; the name was changed to Nike in 1978. It began as a partnership between an MBA candidate and a former track coach who had manufactured running shoes in his spare time. The company built its reputation on its technological breakthroughs in athletic shoes, and helped to introduce specialized shoes for different sports. Prior to companies such as Nike bringing forth this concept, most athletes used general purpose athletic shoes regardless of the sport in which they were participating, or the strains it put on their feet.
In addition to technology, Nike also brought comfort and fashion to the industry, although Reebok, a competitor, was more...