Produce a report on the performance and financial position of Adidas and Nike. Highlight, compare and discuss their financial strengths and weaknesses and indicate any threats and opportunities. Year on year comparisons of each company and then each other - Case Study Example

Download file to see previous pages This report seeks to explore the performance and financial position of the two companies. In addition, the report will dissect the strengths, weaknesses, opportunities and threats relative to these companies.
As a point of departure, these companies began as footwear makers for the contemporary athletes and due to their ability in design, innovation and technology; they have diversified into various areas, which include apparel, equipment and accessories. The corporations are among the top global companies that are attributed to the world presence. Consider the following logos of the corporations
In the case of market trends, the demand for the footwear has been on the decreasing note due to the increase in demand of alternate footwear and saturation of the market. This has made the market to be competitive and for these players to survive there is need for change of tactic in terms of quality, branding and marketing to the untapped market potential such as China, Russia and Brazil (JAEGER, 2005). In essence, the industry is hypercompetitive with fierce rivalry among the top players. The following graph helps in creating a general picture on the state of affairs in the two multinational corporations
Both corporations have enjoyed relatively good performance, however, a clear picture on the financial performance and position will be determined by consideration of various indicators. In addition, various financial ratios will help determine the state of affair so the corporations. These ratios include liquidity, profitability, efficiency, gearing and investor ratios.
In the case of Nike’s growth and financial performance, the corporation has been growing and performing well year in year out. For instance, the revenues grew from $25 billion in 2013 to $27 in 2014. In addition, the gross profit increased from $11 billion in 2013 to 12 billion in 2014. On the section of cost of goods sold, the corporation has been able to reduce the ...Download file to see next pagesRead More