Nike’s and Adidas’ Marketing Strategy and Corporate Responsibility

Name 1 Name: Instructors Name: Essay Essay Nike and Adidas are both top multinational corporations with comparable brands, that is, athletic gear, shoes, and leisure apparel that are appealing to similar populations (Dominguez 37). In addition, Nike and Addidas have different marketing strategies and corporate responsibilities that may be associated with the success or criticism of the organizations. Therefore, the marketing strategies and corporate social responsibility of Nike and Addidas and their cause and effects are compared and explored in this paper. Nike’s Marketing Strategy and Corporate Responsibility Nike is an international organization specializing in athletic gear, shoes, and apparel. Nike brands are divided into six categories, including training and sportswear, NIKE basketball, running, football, and Jordan Brand (United States Securities and Exchange Commission [USSEC] 1). In addition, Nike sells a line of equipment and accessories such as socks, bags, eyewear, timepieces, digital devices, sports balls, bats, gloves, and protective equipment. Thus, Nike creates and markets various products to meet individual consumer needs while re-aligning and simplifying the business to accelerate its growth opportunities (USSEC 1). Also, the company offers sponsorship to many athletes globally. In addition, Nike offers information on its investors, sustainability policies, and corporate social responsibility actions on its website (Dominguez 39). Nike’s corporate social responsibility initiatives and policies are aimed at promoting a healthy lifestyle among children, helping to fund educational programs in various countries, and supporting local community grassroots organizations. The company’s commitment to innovation and high-quality construction has placed it at the top of the market. Name 2 Nike has also entered into license agreements permitting it to unaffiliated companies to produce and sell certain apparel, digital devices and applications, and other equipment designed for sports activities using Nike-owned trademarks (USSEC 2). The strategy has allowed Nike to meet market demands and produce and sell increased numbers of products; thus, generating more revenue. In addition, Nike has improved its interactive consumer services and experiences by using digital platforms such as fitness and activity apps (USSEC 2). However, Nike has struggled to maintain its reputation due to poor working conditions if employees are in the organization’s sweatshops (Martinez 2). Nike was criticized for exploiting its workers and discriminating against women. For instance, Nike paid its staff in Indonesian factories about $0.87 per day, which only catered for 68% of an individual’s basic needs and was far below the minimum necessary to maintain dependent family members (Martinez 2). Nike has also been criticized for not upholding its corporate social responsibility to developing countries, as it only works with European countries. To avert the critics, Nike published the wages of its staff at 552 factories globally to demonstrate that the company was paying above the minimum wage in all its sweatshops. Addidas Marketing Strategy and Corporate Responsibility Alternatively, Addidas offers a breakdown of its responsibilities for the” entire life cycle of sport” and provides a numerical and visual breakdown of sales, employees, shares, research, and development (Dominguez 42). The organization’s strategic focus is improving health, empowering people, and inspiring action. Unlike Nike, Addidas partners with women empowerment programs in Pakistan. Addidas aims to help women in Pakistan refine their skills and advance their education to find new jobs. Addidas reaches and helps more people in more countries than Nike as they understand their influence and responsibility as an organization (Dominguez 45). Addidas aims to assist communities where they sell and Name 3 produce their products. For instance, Addidas offers financial aid to the Global Aid Network (GAiN) to help establish sports facilities in Nigeria, Uganda, and Armenia (Dominguez 42). As much as Addidas promotes a positive image of corporate social responsibility, the organization’s practices have still been criticized. Addidas was criticized for its brand marketing and labeling its clothing “gangster chic” (Dominguez 43). Also, the association of Addidas with the elite and not the middle class further destroyed the company’s image. Compared to Nike, it is easier to navigate the Addidas website, offering many breakdowns of who they work with and what they do. On their website, Nike indicates nonprofits and organizations they support but does not state why or how they do it. However, while Nike and Addidas are successful in the global markets, they must ensure communities are knowledgeable about their social impact to remain profitable (Dominguez 44). Conclusion Nike and Adidas are top mult