Last updated: April 25, 2019
Topic: BusinessMarketing
Sample donated:

 

In the world of sports, shoes and apparel are the most important things the athletes needed to have. Aside from talent and passion for sports, a quality sportswear is essential for athletes to perform well. All over the world different kinds of sports had reach its popularity and become influential in terms of having huge number of audience. Also, through sports the industry of sportswear was born to provide sportswear for athletes and people engaged with sports. It can be argued that leading manufacturer of sportswear is one of the major beneficiaries of the popularity of sports.

Over the years sportswear industry had reached its success as the sports continuous to become globally famous. Due to this the demand on the quality sportswear from all around the world had increased. Just like any other industry, sportswear industry is said to be affected by many different factor. One of it is the economy it is that status of sports wear industry is affected by the economy. Another one is that industry of sportswear varies with the demand of their market. Sportswear industry is a globalize industry in which its market covers different countries across the globe.

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It can be argued that sportswear industry is one of the most competitive industries that continuous to grow as the demand of the market for sportswear continuous to accelerate. On the other hand, Nike and puma are two of the most successful sportswear manufacturer in its industry today. These two leading sportswear manufacturer both share the market in its industry. However, Nike has the biggest share in the market than puma.

Puma as a sportswear manufacturer is a producer of quality sportswear for the athletes. According to the “History of Branding”, Puma Company was established by Rudolf Dassler in the year 1948 in Germany. As a sportswear company based in Germany, puma’s headquarter of is located Herzogenaurach Germany in which the founder of puma Rudolf Dassler is the brother of Adolf “Adi” Dassler who established another leading sportswear company Adidas. (History of Branding)

In the year puma was established, the company started to hit the market by selling new concepts in sports shoes. During the early 1970’s the German sportswear company had experienced huge growth in their market share after releasing new concepts of soccer shoes (Theshoegame.com). However, in the year 1974 Rudolf Dassler passed away that made a negative impact to the whole puma company, which Armin and Gerd Dassler had to take over on the management of puma that resulted to the 1989 announcement of the puma to open their company to public investors. (Theshoegame.com)

As manufacturer of sports wear, puma is known to be a producer of quality sports shoes used by many athletes around the globe. However, most of puma consumers are not in the market of United States. Huge numbers of puma collectors are in the European country and outside of America. In fact puma is the second largest sportswear company after Nike in Europe in which its share of market can be traced in European market, which the company has 3.7 markets share with market value of 4.10 billion euros as of 2005 (Fashion United).

Also most of the consumers of puma are soccer players and fanatics. The company use soccer as their field of specialization, which they sponsor soccer team and soccer league. Future growth for puma relies on the continuous support of the company to their leading soccer team and Fifa world cup. With this puma is able to get more sales for the years to come. Furthermore, continuous production of quality sneakers will help the company grow better and broaden their market.

Nike Company is one of the known to be a manufacturer of high quality sports gear. The history of today’s successful and competitive company can be traced in Oregon United States when Philip Knight established the Nike Company in the year 1968. Philip Knight is the founder, owner and currently the Chief Executive officer (CEO) of Nike Company. Knight was born in the United States, which finished his education in the University of Oregon. (enotes.com)

As an aspiring entrepreneur, Philip Knight founded his own company and started selling running shoes under the company named blue e ribbon sports, which he renamed as Nike when he decided to make his own line of sports apparel in 1970’s. The decision of Philip Knight to rename the blue ribbon sports to Nike is believed to be the start of something brilliant for his company. (Nike and American Body)

In the same decade, Philip Knight’s company had recorded huge increased in their revenue from $10,000 to $270 million after the launch of the new company name Nike. From then on the Nike Company had continued to innovate and improve as a company to increase their share in sportswear market from all around the world. (Nike and American Body)

Through efforts Nike Company had reached its popularity as reliable sports gear manufacturer, providing the athletes quality wears and accessories they used to play sports. By means of advertising Nike Company was able generate more sales in 1990’s and it was in the year 1996 when the “advertising age” named Philip Knight’s Nike Company as the “Marketer of the Year”. (Nike and American Body) This award of Nike Company is a clear indication that Nike has an effective marketing campaign to win the battle in the growing competition to sportswear industry, which allows the Nike Company to win the highest market share in sportswear industry. Furthermore, in the same year 1996 Nike Company had recorded another increased in their revenue after reaching $6.74 billion in sales and projecting $8 billion in the year 1997. (Nike and American Body)

According to CNET Networks, Nike Company dominates the competition in sportswear industry as they dominate the major share in athletic footwear market with 39.2% leading all other sportswear company. Unlike puma, Nike Company the focus of Nike Company is in the sport of basketball, which their market is all around the world. Future growth of Nike can be related to continuous support to major sports like basketball in able to grow bigger as a company. (CNET Networks, Inc.)

 

 

References

 

 

History of Branding (2006), History of puma: Retrieved April 10, 2008 from              http://www.historyofbranding.com/puma.html

 

Theshoegame.com (2008), History of Puma: Retrieved April 10, 2008 from             http://theshoegame.com/Puma-History.html

 

Enotes.com (2008), Chairman and chief executive officer of Nike: Retrieved April 10, 2008 from

http://www.enotes.com/international-business-biography/knight-philip-h

 

Nike and the American Body (2008), Nike Brief History: Retrieved April 10, 2008 from             http://xroads.virginia.edu/~CLASS/am483_97/projects/hincker/nike.html

 

CNET Networks, Inc. (2008), Athletic Footwear Market Share Report: Retrieved April 10, 2008            from http://findarticles.com/p/articles/mi_m0EIN/is_2000_April_7/ai_61368089