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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 world’s 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 Nike’s main competitor.

18 2 0.36 0.10 0. Adidas is known to be the leader of the market.44 2.09 0.36 Under Armour Ratin Weig g ht Scor e 3 0.30 4 0.27 0.08 0.16 Adidas Rati ng 3 4 3 4 3 4 3 3 3 4 4 Weig ht Scor e 0. Adidas’s commitment to product innovation either on designs or products variety has successfully differentiate the brand from its competitors. Adidas’s differentiation product strategy helps it in gaining a competitive advantage over its competitors.30 0.36 3 0. the main strategies of Adidas are differentiation and focus.0 Weig ht Scor e 0.10 0.27 0.10 0.28 0.20 2 0.07 0.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 0.10 0.40 0.30 2 0. According to Michael Porter’s Generic Strategies.30 0.18 3.20 0.24 0.30 0.30 0.16 2 0.20 2 0.27 0.24 0.27 3. 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.53 Among the three main players in sporting goods industry in Malaysia.28 0.08 0.09 0.40 0.40 0. Nike is known as the market challenger who is trying to overtake Adidas in Malaysia market. And according to CPM Matrix.32 0.24 0. Adidas’s total weighted score is the highest.20 2 0.10 0.21 3 0. Adidas basically focuses on a specific .20 0.09 3 4 3 4 4 3 4 2 2 3 3 Total 1.40 0.24 3 0.

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