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CPM Matrix

Major competitors of Nike in Malaysia are Adidas and Under Armour.


Adidas who is the leader of sporting goods industry in Malaysia market was
founded in 1924 in Germany by two brothers, Adi and Rudolf Dassler. The company
was first named Dassler shoes and later became Adidas in 1948. Adidas consists of the
Reebok sportswear company, Taylor Made-Adidas golf-company, 9.1% of FC Bayern
Munich and Runtastic a former-Austrian fitness company. Besides sports footwear,
Adidas also produces other products such as bags, shirts, watches, eyewear and other
sports and clothing-related goods.
The permanent passion for innovation, to give athletes the best products to
support their ambitions, has turned Adidas into a global powerhouse, making them one
of the worlds most widely recognized brand symbols, the three stripes of Adidas. With
the incorporation of Adidas Malaysia in 1994, and over the years, the Adidas brand
continued to go through major product introductions, technological advancements and
on enhanced brand positioning, making the three stripes brand a credible and premiere
sports brand in the world. Adidas Malaysia has its head office in PJ Trade Centre and a
warehouse in Shah Alam and a staff strength of over 150 employees. The brand attitude
of All In or Nothing encapsulates the vision and goal of Adidas Malaysia in maintaining
the essence of being the leader in the sporting goods market in Malaysia.
Under Armour, Inc. is an American sports clothing and accessories company.
The company is a supplier of sportswear and casual apparel. Under Armour began
offering footwear in 2006. Under Armour was founded in 1996 by Kevin Plank, a then
23-year-old former special team captain of the University of Maryland football team.
Under Armour trademarks include the UA Logo and UNDER ARMOUR , registered in
several countries including the United States, Canada, Mexico, the European Union,
Japan, and China. Other patent registrations include UA , ARMOUR , HEATGEAR ,
COLDGEAR , ALLSEASONGEAR , PROTECT THIS HOUSE , I WILL , and other
trademarks that incorporate the term ARMOUR such as ARMOUR39 , ARMOURBITE
, ARMOURLOFT , ARMOURSTORM , and ARMOUR FLEECE .
Under Armour's mission is to provide the world with technically advanced
products engineered with our superior fabric construction, exclusive moisture
management, and proven innovation. Every Under Armour product is doing something
for you; it's making you better." Recently, Under Armour has been experiencing rapid
growth in Malaysia market and has been one of the Nikes main competitor.

Nike
Critical Success Factors

Weig
ht

Rati
ng

Consumer Loyalty
Brand Recognition
Price Competitiveness
Product Quality
Product R&D
Market Share
Technology
Advertising
Public Perception
Product Diversity
New Product Lines

0.08
0.10
0.09
0.07
0.10
0.08
0.09
0.10
0.10
0.10
0.09

3
4
3
4
4
3
4
2
2
3
3

Total

1.0

Weig
ht
Scor
e
0.24
0.40
0.27
0.28
0.40
0.24
0.36
0.20
0.20
0.30
0.27
3.16

Adidas
Rati
ng

3
4
3
4
3
4
3
3
3
4
4

Weig
ht
Scor
e
0.24
0.40
0.27
0.28
0.30
0.32
0.27
0.30
0.30
0.40
0.36

Under
Armour
Ratin Weig
g
ht
Scor
e
3
0.24
3
0.30
4
0.36
3
0.21
3
0.30
2
0.16
2
0.18
2
0.20
2
0.20
2
0.20
2
0.18

3.44

2.53

Among the three main players in sporting goods industry in Malaysia, Adidas is
known to be the leader of the market. Adidass total weighted score is the highest. And
according to CPM Matrix, Nike is known as the market challenger who is trying to
overtake Adidas in Malaysia market, and Under Armour is the follower.

Adidas is a well-known and an established brand which enable Adidas to be the


market leader in Malaysia. According to Michael Porters Generic Strategies, the main
strategies of Adidas are differentiation and focus. Adidass commitment to product
innovation either on designs or products variety has successfully differentiate the brand
from its competitors. Adidass differentiation product strategy helps it in gaining a
competitive advantage over its competitors. Adidas basically focuses on a specific

target groups of consumers which are athletes, sports lovers, age group of 20-29 year
old people and high school athletes of 14- 19 year old teenagers.
Under Armour is selling high-performance products that cater mostly to
professional and college athletes. Its products are manufactured by third-party
manufacturers, in collaboration with the in-house product development team. This
provides two benefits. First, it reduces the cost of production which enables Under
Armour to be get higher weighted score under product competitiveness. Second, it
enables the firm to concentrate on developing new products that will meet the needs of
a changing market.
Nikes main competitive advantages according to Porters generic strategies are
cost advantage and differentiation advantage. Products differentiation is able to help a
firm to boost its profit through the sale of different product. One of the Nikes strengths is
its superior product R&D and this is crucial for Nike to success in its differentiation
strategy. Nike has been struggled on its negative public reputation due to its poor
employment practices like employment child labor. Although these practices negatively
affected Nikes reputation but these practices indeed helped Nike to lower its cost of
production.

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