Both Nike and Adidas are interested in attracting profitable investors who might provide significant support for further extensions and new projects.



In spite of the fact, that Nike and Adidas are involved in the same industry, these two companies offer different levels of profits, as well the rate of possible risks. So, Nike is considered to set premium standards in the market, and perfect for long term investments. On the other hand, Adidas has endured major reorganization during 2006, and managed to become market share leader after the acquisition of Reebok. So, Adidas would be a good choice for those investors who aim to receive short term profits.

Certainly, each companies has certain disadvantages, which might affect the choice of investors. Particularly, Nike, with its stable ratios and premium quality, is often accused of conservatism, as well as lack of transparency. Moreover, Adidas, with its shareholder orientation and effective management, can be rather risky project to invest. The purchase of Reebok was rather risky decision, but it has definitely contributed to the overall performance of Adidas, it was worth taking this risk.

Finally, certain recommendations for potential investors of each company should be worked out. It is recommended to postpone investment in the group of Adidas in order to wait for the minimal stock price. On the other hand, Nike should be chosen by those investors who value security of their investments on the first place, and are willing to sacrifice profits, but minimize potential risks.