Nike, Pumas, Adidas Value Chains

Market Introduction

Football is the most popular sport in the world. Each year thousand million of jerseys are sold all over the world. This market provides a lot of opportunities because any person who likes football and local or/and a national team can buy a jersey. Furthermore, even a person who is not a big fan of football, can buy a football jersey to make sport like running or dance of gymnastic… without any consideration of age or gender. In a word, any sport lover from 7 to 77, male or female, can buy a football jersey. So there is a wide range of customers !

Moreover, football jerseys market offer is very diversified : each local or national team has its own jersey , so one person can buy several jerseys. In addition, each year, jerseys are changing, are redesigned and include better technologies. Thus, supporters have to buy their favorite team jersey at least once in a couple of years. For all these reasons we made the decision to choose this very successful market.

Let’s consider now, the main actors of that market : Until, 5 years ago there were 5 main actors on that market, namely Nike, Adidas, Puma, Umbro and Reebok . Nevertheless, in 2005 Adidas purchased Reebok for $3.8 billion and in 2007, Nike purchased Umbro for $585 million.

Therefore, today’s football jerseys market configuration is the following : we assist to a struggle between two giants Nike and Adidas, and we have Puma the « outsider » which tries – and manages – to exist between them.

More details about the three main actors of the market :

Nike

Based in Beaverton, Oregon, and employing approximately 33,000 people worldwide, Nike Inc. is the world's leading designer and marketer of football Jerseys. Nike sales regarding Football , with a revenue of 1.9 B represents a 10% of the firm global revenue, namely € 19.2 Billons for 2009. They operate in more than 160 countries over the globe.

Adidas

Adidas is based in Herzogenaurach, Germany and is employing approximately...