Adidas Strategic Management

3754 Words Nov 14th, 2012 16 Pages
ADIDAS STRATEGIC MANAGEMENT
OBJECTIVES:
To identify the main strategic issues facing Adidas in maintaining their current global competitive position. To evaluate potential strategic options that Adidas should consider in order to sustain and develop their global competitive positioning. To discuss the implications of these options for the strategic management decisions of the company.
To make appropriate recommendations for the future.
Summary:
This report sets out the different aspects of strategic management at the Adidas group. Sometimes the two are used interchangeably, but there is a lot of difference between the two. They can partly be distinguished on the basis of different ways of financing them and partly by comparing
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It is now focussed on having various distribution channels and has a huge network of stores and outlets worldwide (Adidas Official).
Due to an extensive marketing infrastructure and advertising, Adidas has been able to undergo market penetration which helps them to draw more profits. According to Manzenreiter (2004:303), Adidas kept doing the advertisement campaigns with popular sports celebrities after the 2002 football World Cup like David Beckham, Hidetoshi Nakata, etc in order to gain more and more market share in the markets like Japan. Adidas also formed one of the pillars in 2006 football World Cup in Germany. Diversity and Variety:-
According to Adidas (Corporate Website), “We will remain committed to understanding, valuing and incorporating the diversity into the corporate culture of the Adidas Group.” This helps them in market penetration and gain competitive advantage. Adidas has a large number of products in a number of styles for both men and women (Runningshoes4u). The company has gained strong reputation in almost every part of the world due to its innovative technology and continuous introduction of new brands. Weaknesses:- Underperformance of Reebok:- The merger between Adidas and Reebok was basically an attempt of Adidas to gain more market share in US- the Nike’s own turf (Tribune LA). Adidas wanted to confront Nike on its own home land. The takeover was
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