Nike Inc. was established in the 1960s. Today, Nike is one of the major players in the industry for sports shoes and clothing. According to the generic strategies, the generic strategy defines how can a company reach and preserves its competitiveness. The company’s growth strategy can show that the company is focusing on making an innovative change to the business. In order for Nike to keep its position and advantage in the industry, the company must make sure that its strategies are always well matched to the present business environments. The strategies that are used by Nike Inc.’s is the cost leadership strategy and the differentiation generic strategy. For the cost leadership strategy, Nike cuts production costs to offer consumers a lower price for all of their products. To compete with Adidas, this cost leadership strategy assisted the company gains back its competitiveness. For differentiation strategy, Nike Inc. keeps creating inimitable products for their consumers. The company mixes special cutting edge designs for their shoes. Both the cost leadership strategy and the differentiation strategies can help the company to improve as a whole. The goal of cost leadership strategy is to help the company to gain its competitiveness from present trends and lessen the costs. Moreover, the goals for differentiation strategy is to increase the company’s profit from shoes. Even though the company is trying to make changes to improve themselves, there are still some issues that can hurt them. The first issue would be the changes of the new lifestyle, such as the consumers are becoming more health and fitness conscious. That means Nike Inc. have to reposition themselves in the industry. Another issue is that the products might go out of style. The company needs to follow the trend as close as possible. Also, Nike needs to focus more on appeal the women consumers, since their purchasing power is increasing, and they tend to spend more time and budget for shopping than men. In addition, they need to beware of other strong competitors that are selling similar sports clothing to target women. Adidas is older than Nike, it was established in the 1940s. Adidas’s strategies are very similar to Nike’s. Adidas is also use the cost leadership strategy and the differentiation strategy, but Adidas focuses more on the differentiation part. Innovate and create new products to compete with other competitors in the industry is Adidas’s corporate level strategy. Moreover, Adidas uses a multi brand strategy to give them the competitive advantage. To keep an inimitable identity, the company has a diverse portfolio that helped them to cater all parts of the market. Adidas spends most of their money on marketing and distribution channels in different countries. The company also uses e commerce to make purchase much more convenient for customers. Their supply chain is closely communicated and hence it helps them to customize their products which appeal to a wide range of customers. In addition, Adidas’s culture forces employees to be innovative with the use of the latest technology to produce new products. By using technologies, they produce products that improve performances of players. The sports that the company focus on are football, basketball and training shoes. Sometimes small problems can turn into a disaster. The first issue that the company have would be making products without considering the American tastes. America has a very different mindset comparing to Germany. Adidas did not listen to the retailers’ and consumers’ feedback on what American prefers. The company is now working to bring more American trend of its products. Another issue is that Adidas lost endorsement deals to its competitor, Nike. Michael Jordan’s brand is still creating billions of dollars in profits for Nike. Today, Nike has endorsed more American sports players than Adidas does. In addition, the company’s product turnaround is very slow.