Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: Return On Assets Operating Margin - 1,169 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

... e lagging on overall in web site appearance in comparison to Nike's web site. OVERALL COMPANY VALUE CONFIGURATION The value curve below illustrates an evaluation of Nike and Adidas's focusing on the company as a whole but with the focal point of e-commerce extension. Nike. com Adidas. com The inputs to the e-commerce value configuration for both Nike and Adidas are: Brand Image, Price, Web site design, Service, and Innovation.

Analyzing the graph, Nike. com has a slight edge over its arch rivals Adidas. Adidas with growing popularity has narrowed the gap from previous years. The brand image for both Nike and Adidas is immense; however Nike has attained a considerable competitive advantage due to its reputation for quality and innovation. In terms of e-commerce, both Adidas and Nike are analogous, however, Adidas' web site is a bit more user friendly and navigation is fairly easy. The functionalities are identical in both cases.

Overall, Nike's continued efforts in innovation coupled with its brand image, is a unanimous leader of the athletic footwear and apparel industry. In terms of the e-commerce portion of the industry, Adidas with its web site design and functionality has narrowed the gap between the market leaders and the market follower. Nike. com's value proposition is an easy to use web site that is highly interactive, secure as well as its reputation and brand image of their product. For Adidas. com, similar to Nike, the value proposition is an interactive web site that is secure and easy to use.

For the soccer industry, Adidas. com positions itself as the leading brand in apparel and footwear. The value chain configuration for both Nike and Adidas is supply chain. The value configuration has multiple components. To the right is a table which summarizes these components and the respective percentages for a $ 100 product (footwear). Because the operations of both companies are similar, the table below only lists Nike's value chain breakdown.

Adidas' value chain although slightly different, is similar in nature in comparison to the industry. Essentially, the breakdown of the value chain indicates for both Adidas and Nike that the cost to produce and sell an item over the Internet costs these companies almost 50 % of the price of the item. Item Percentage Material Cost 16 % Labour Cost 2. 6 % Administration and Overhead 4. 6 % Profit Margin 1. 9 % Net Factory Price 25. 1 % Shipping, Customs and Finance 3. 9 % Net Landed Price 29 % Warehousing and distribution 0. 8 % Royalties 0. 4 % Quality Costs 0. 3 % Direct Ship Allowance 0. 2 % Research and Development 0. 2 % Other costs of sale 0. 1 % Total Cost of Goods Sold 31 % Sales and discounts 4. 6 % SG& A 8. 3 % Corporate Overhead 1. 8 % Interest Expense 0. 2 % Income Taxes 2. 6 % Total Nike Cost 48. 5 % Financial Analysis of Nike and Adidas Below is the Nike and Adidas stock performance comparison in Euros. There is no question Nike is the market leader in not only the product aspect but also the financial aspect of this industry.

However, over the last few years, Adidas has been slowly eroding the market share from Nike. The financial comparisons of both companies indicate Nike having a substantial financial advantage over Adidas. The operating margin and return on assets is slightly lower for Adidas. This could be indicative of the market leader and market follower relationship. Adidas needs to improve in both operating margin and return on assets to gain ground on Nike. Nike Adidas MeasureNikeAdidasIndustry Employees 23, 30014, 71623, 000 Market Cap 16. 36 Billion 13. 97 Billion 240. 81 Million Revenues 10. 70 Billion 6. 523 Billion 482. 62 Million Operating Margin 10. 89 % 6. 71 %N/A Return on Assets 11. 97 % 5. 3 %N/A Return on Equity 20. 12 % 21. 1 %N/A Below is a figure extracted from a study conducted at Cornell University, which illustrated the distribution of market shares in the U.

S. and in foreign markets. This research was conducted in 1998, since this time, Adidas has comfortably moved to the second spot in this highly competitive industry. For Nike to successfully remain as the market leaders, it must continue to innovate and produce leading edge designs that attract the diverse markets.

One important point to highlight is the market share Adidas has gained since 1998. Adidas evolved from a minor player in the industry to the second biggest company in the industry. Footwear Market Share SWOT Analysis for Nike. com & Adidas. com Nike. com Adidas.

com Position Market Leader Market Follower STRENGTHS Strong management team and good corporate strategy in both North American and overseas markets First movers advantage in e-commerce Brand recognition and reputation Trademark "Just Do It" Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc. ) Strong control over its own distribution channel Strong customer base Strong financial position with minimal long term debts Innovative designs in footwear enabling consumers to design their own shoes online Brand reputation and recognition Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc. ) Adidas even offers items not available in its retail stores Emerging brand name Pricing strategy is competitive to Nike's Merger with Salomon will allow Adidas to gain a strong foothold in the Skiing Industry Secondary web sites (i. e. soccer evolution. com to simply promote soccer, Adidas leads the market in this sport) WEAKNESSES Negative image portrayed by poor working conditions in its overseas factories E-commerce is limited to USA The direct sale to consumers is creating conflicts with its own resellers Currently available supply chain, manufacturing, and fulfillment technologies aren't easily integrated with online build-to-order systems&# 61656; Not known for its research and development leading to innovative designs The e-commerce is limited to USA, however, has planned to expand to Canada and international in the near future Online customer service not "helpful" or easy to find OPPORTUNITIES Increasing demand in the industry for products available online Increase female participation in athletics E-commerce will reduce the cost of goods sold thus improving the "bottom line" New technology and innovation to stay on top of market needs Expand e-commerce to global markets Possibility of outsourcing the web development and e-commerce to a third party developer Growing interest in the sport of Basketball. Partnering up with other retailers to sell basketball footwear and apparel Growing reputation in non-basketball sports will boost e-business E-commerce will reduce the cost of goods sold thus improving the "bottom line" Expand e-commerce to global markets Collaborate with other online retailers to offer Adidas products THREATS Negative image due to "sweatshops" Economic downturn in North America and Asian Countries Increase in the price of providing technological solutions (e-commerce) Strong competition from some of its major challengers in all branches of the business Continuing challenges in import / export duties Negative image created by the spo...


Free research essays on topics related to: e commerce, goods sold, operating margin, value chain, return on assets

Research essay sample on Return On Assets Operating Margin

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com