Nike Inc. and Adidas Group: Business Direction and HR Planning

Industry Background

The sporting gear industry occupies a significant place in the business environment in Canada. The industry’s code, according to the North American Industry Classification System (NAICS), is 339920, which refers to sporting and athletic goods manufacturing (“NAICS Code Description”). The reason for choosing this business field is because it embraces a wide range of products and business entities that attracts more and more people each year.

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The perspective growth of the business amplifies its importance and defines the relevance of some entities of the field to human resource (HR) planning analysis. In Canada, sporting manufacturing is an important constituent of economic and business processes which has its associations. Indeed, the Canadian Sporting Goods Association is a non-profit association that provides an opportunity to sport businesses to introduce their goods and information to the public of trends and the best gear in that specific field (Canadian Sporting Goods Association).

The industry includes the entities engaged in manufacturing different types of athletic and manufacturing goods, excluding footwear and clothes (Government of Canada). Thus, the breadth of the entities related to sports manufacturing provides multiple economic and labor market opportunities.

The scope of the chosen industry’s importance in Canada includes its contribution to different realms of business. More specifically, the sports gear sphere rapidly grows and increases the rates of shipments and exporting. According to the data presented on the official website of Government of Canada, the “total exports and apparent domestic market increased at average annual rates of 5.8% and 8.3% respectively” (para. 5). The rise in shipment is caused by the high demand both in domestic and export markets.

Overall, the trends in the industry are marked by the preferences of the customers, which vary from exercise, fitness, and hockey equipment to fishing, camping, shooting, pools, and other types of gear (Government of Canada). Such an array of products manufactured by a single industry contributes to its prospective development and the increase in diverse employment positions. The two companies that occupy a predominantly leading place in the sphere are Nike and Adidas.

Competitive Environment Scan

In order to analyze the issues related to human resource planning within the industry, it is necessary to review the business environment in which the entities operate. More specifically, one should define some crucial factors that contribute to the trends in the sphere. As for the sporting goods manufacturing industry, the most influential factors that define the direction of the businesses within it include cultural, socio-economic, and labor market. The analysis of the articles covering the issues related to the business environment in the designated sphere demonstrates that this industry is highly competitive and is continuously growing depending on the trends in society.

The first crucial factor is social trends, which emerge based on people’s preferences in leisure time spending. Indeed, since sporting activities become more relevant in a health-oriented society, sporting equipment is more likely to have higher demand (Heroux 320). Although the overall trend of popularized sports activities improves the economic scope of the industry, the mere reliance on the “changing tastes” of the consumers imposes some difficulties to the industry’s growth (Heroux 320).

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Also, the particularities affecting local cultural factors might define the direction of the industry, For example, in Canada, hockey is one of the most popular kinds of sports, as well as other winter activities, such as snowboarding and skiing alongside with other informal leisure types (Heroux 320-321). Culturally, people in this country are more likely to purchase gear for hockey; thus, more businesses target this kind of product as the most profitable ones. Thus, the implications of the cultural factor on human resource planning might mean that a higher employment rate is expected in the industry. It is explained by the annually growing interest of the public in a more diverse array of sports activities.

Another important determinant of Canadian sporting manufacturing is socio-economic. It is apparent that the revenues of an entity that produces goods depend on the economic situation in the country. The level of income of the target population defines the scope of operation and the human resources requirements (Mahdi et al. 168). Also, such socio-economic determinant as the competition with other industries that occupy the leisure goods sphere, including books, films, video games, and others, influence the growth of sporting gear production industry (Government of Canada). Therefore, the trends in human resource planning align with the economic stability, income rates of the population, and the ability to succeed in the competition with other leisure industries.

Finally, the labor market that is changing toward the creativeness and soft skills prioritization define the direction of the industry’s development of human resources-wise. With the growing demand for creative approach, problem-solving, personal growth, and technological advancement in various fields, sports gear manufacturing industry might meet the requirements by following the tendencies of creative solutions, customer orientation, and innovation.

This factor relies on some pedagogical implications retrieved from the article by Sokolowski (166). The research found that the majority of university students do not receive necessary practical skills in sporting goods design, thus limiting such individuals to the choice of employment positions that do not require particular technical qualifications (Canadian Sporting Goods Association). Thus, human resource planning is designed around the idea of inclusion of the individuals who have creative thinking and are willing to adopt specific skills via training and development programs.

All the above-mentioned factors constitute the competitive environment of the sports gear sphere in Canada. The scan shows that there are both opportunities for growth of the businesses engaged in the manufacturing of sporting equipment and the issues that might impede rapid development. Thus, the external environment that defines the development of sporting gear manufacturing in Canada affects specific entities and should be used when choosing their business strategies.

Business Strategies of 2 Companies Within the Industry

Nike Inc.

Nike Inc. is one of the leading companies that work internationally and produces high-quality products for an array of sports activities. The company’s global revenue from the operations on a global scale reaches the point of $6/3 billion (Heroux 320). According to the company’s website, its mission is to “bring inspiration and innovation to every athlete in the world” (“About Nike” par. 1).

The company is following a growth strategy by pursuing such strategic priorities as innovation, building a diverse and inclusive team of employees, making social and community impact, and provide business sustainability (“About Nike”). All the designated strategic issues are anticipated to contribute to the ability of the company to win the competition and obtain a leading position in the market.

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Adidas Group

Adidas group is a corporation that occupies the leading position in the global market of sporting goods manufacturing. The company’s strategic plan under the title “Creating the New” prioritizes the achievement of the best result in goods production, customer and stakeholders’ feedback, and leading in the competition. The strategy is designed such strategic choices as Speed, Cities, and Open Source (“Strategy”). The global revenue of the company is $8.2 billion, which saves Adidas the leading position in the global sport manufacturing market (Heroux 320). The entity prioritizes commitment as a stepping stone of successful teamwork.

The two companies are similar in the choice of their strategies for growth. They also share the same patterns of prioritization of the quality of their products, as well as their applicability to a variety of customers. Also, both companies emphasize the importance of innovation as a driving force of their operations. However, Adidas is more transparent about the strategic goals and the plan of actions that designate the corporate mission. Nike, on the other hand, is more dependent on the commitment to communities, diversification, and inclusiveness as a way to reach the widest range of athletes.

Overall, both companies align with the factors that define the environment of the sports gear industry. Nike and Adidas prioritize the safety of their employees, their professional growth, and potential development. The training programs provide an opportunity for obtaining the necessary skills to contribute to the company in the future. The wide range of facilities that spread across the country and beyond provides more opportunities for promotion and open more space for personal development.

S.W.O.T. Analysis

Nike

The S.W.O.T. analysis of the company’s human resources is carried out on the basis of the data retrieved from the company’s official website and the scholarly article by Mahdi et al..

Strengths Weaknesses
  • the employees are experienced due to the long and successful history of the company;
  • the workforce is inclusive and diverse;
  • all employees adhere to the corporate culture requirements and exchange experience for better business outcomes;
  • professional designers use innovation to meet the customers’ requirements.
  • limited opportunities for promotion without specific qualifications;
  • non-sufficient working conditions in facilities outside Canada;
Opportunities Threats
  • the improvement of customer needs’ analysis might facilitate the scope of employment opportunities;
  • technological advancement could attract more specialists.
  • overall trends of workforce aging might endanger the company;
  • the lack of potential employees with specific technical skills for working in manufacturing;
  • the growing industry implies the emergence of new competing entities that might impose the strategic growth of the company.

Adidas

The S.W.O.T. analysis of the company’s human resources is carried out on the basis of the data retrieved from the company’s official website and the scholarly article by Mahdi et al..

Strengths Weaknesses
  • the leading position on the global sports gear market provides an array of promotional opportunities;
  • the staff is highly competent;
  • the innovative and strategy-driven development process is based on the commitment of all employees;
  • teamwork is prioritized both within the company and in its joint performance with other entities.
  • the lack of staff that has specific technical skills obtained in educational facilities;
  • outsourcing is one of the main employment ways.
Opportunities Threats
  • global demand for sporting goods might provide more opportunities for the company’s growth and higher employment rates;
  • the high level of brand recognition contributes to the continuous growth of the company’s operations.
  • the growing sector of sports gear industry presents more competition and staff flow;
  • economic instability in the developing countries where the company has its facilities might impede the performance.

Works Cited

“About Nike.” Nike, 2020. Web.

Canadian Sporting Goods Association. “Canada’s Sport Industry Hub.” 2018. Web.

Government of Canada. “Sporting and Athletic Goods Industry Profile.” 2017. Web.

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Herouz, L. “Sports Outfitters’ Marketing Strategies: A Comparative Exploratory Study in the U.S. and Canada.” Advances in Economics and Business, vol. 5, no. 6, 2017, pp. 320-327.

Mahdi, H. A. A., et al. “A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with Special Reference to competitive advantage in the Context of a Dynamic and Competitive Environment.” International Journal of Business Management and Economic Research, vol 6, no. 3, 2015, pp. 167-177.

NAICS Code Description.NAICS Association, 2018. Web.

Sokolowski, S. L. “Sports Industry Meets Academia: The Pedagogical Development of an MS Degree Program in Sports Product Design.” Technology and Innovation, vol. 20, 2019, pp. 165-177.

“Strategy.” Adidas Group, n. d. Web.

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StudyCorgi. (2021, June 22). Nike Inc. and Adidas Group: Business Direction and HR Planning. Retrieved from https://studycorgi.com/nike-inc-and-adidas-group-business-direction-and-hr-planning/

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