Adidas Internal Analysis

2515 WordsApr 26, 201411 Pages
Table of Content 1. Introduction Competition and competitive markets are common in every industry. Especially since Globalization is influencing our economy, companies need to stay competitive in order to survive against new rising competitors, which are basically rooted in the Middle East Asia. Analyzing own strengths and weaknesses and capturing new opportunities or avoiding threats, are one of the most important factors for reaching this goal. This paper is dealing with the German apparel “Adidas”, which is one of the world’s largest manufacturers for sportswear and sport utilities. But why are they one of the leading global players in this certain industry? There are some key factors, which influenced their…show more content…
CNC machines are used in the assembly line for the mass production of shoes, which is more or less their cash cow and keeps them successful. The Research and Development departments are equipped with CAM. Software’s for creating cutting edge designs. The main manufactories are located in Vietnam and China and the bases for the organization are based in Portland, Oregon (U.S) and in Herzogenrauch, Bavaria (Germany) (AdidasGroup, 2013). Patents, partnerships, sponsorships and cooperation’s with universities are intangible assets, which Adidas owns. 3.2. Capabilities Especially in times where raw materials and resources are gaining more and more value, companies need to use their assets and resources in the most efficient way, in order to stay competitive. These opportunities are called “capabilities”. Capabilities can be described as organizationally embedded non-transferable firm-specific resources. (Crook, T. R., et. al., 2008). Capabilities can be divided into distinctive and threshold capabilities. On the one hand, Threshold capabilities or resources are fulfilling the general criteria a firm has to provide, in order to survive on the market. Regarding our example of Adidas, the threshold criteria for their certain industry are buildings, land, workforce, several departments and outsourced manufactories. But on the other hand, there are distinctive capabilities, which should not just keep the company alive, but deliver a competitive

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