Nike and World Cup

Nike and World Cup

Nike, Inc. (NKE) has been a successful company ever since its inception and introduction in the world of sports. The company was founded in 1964 which is gradually segmenting its business in a way that it caters the needs of sports athletes as well as casual wears etc. The company sales in the first year were worth $8,000 which rose up to $20,000 in the following year. Now, the company has reached to $27.07 billion sales as of February 28, 2014. Nike is one of the most successful and premier names in the world of sports. Mostly, the American consumers recognize Nike as a very big name, however, on the grand stage; Nike still has to compete with the rivals Adidas from Germany.

The stage has been set for Nike and Adidas to go on head to head at the World Cup. There is no doubt about the fact that both of the companies have heavily invested in the teams, players, and advertisements endorsed as well as new products being launched particularly for this big event, a grand stage is ready for a peculiar showdown in Brazil in front of thousands/millions of spectators.

Advertisements and Endorsements

Nike and Adidas, together, are sponsoring 19 teams out of the 32 playing in the World Cup. Both of the companies have dedicated their most of the time as well as significant amount of investment for the individual players as well as the teams playing in the World Cup. Nike has 10 teams in its roster which includes the hosting nation Brazil, whereas Adidas has 9 teams including the holders of the World Cup 2010, Spain.

Never ending innovation

Nike Company has a lead over Adidas in terms of bringing innovation in their products. All the devoted significant time and money would go in vain if there are no new products or innovative products. Apart from selling the official team kits extensively, Nike is promoting Magista, the new soccer cleats, since March. Nike has been so devoted to innovation over the recent years.

What is at risk?

The momentum of sales would be the most important thing from which either of these companies can become victorious. Nike and Adidas are capable as well as ready to generate extensive revenues from this grand event. Apart from the capabilities and everything in terms of generating revenues, Adidas is leading over Nike at the moment.

Conclusion

Hence in a nutshell, Nike and Adidas both have dedicated everything when it comes to sponsoring and promoting their endorsed teams and athletes. But as of today, Adidas has a competitive edge over Nike as the company sealed the deal with FIFA to become the official sponsor of the World Cup till 2030.