Adidas Strategy Essay

‘Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through it’

Strategy is a set of complicated tactics formulated by the executives of a company directed towards the achievement of company’s goal (Salmela, 2002). It is about all the path ways that a company would follow to reach its ultimate goal. It is a company’s strategy which helps to identify what it does better than the other companies in the industries, which may be different from what it does best. For successful strategy formulation and implementation, a company should know the needs of customers and should have knowledge of its competitors. Through a good strategy a company would identify that opportunity which makes it different from the others (Thompson, 2005).

The whole plan is to be able to gain the support of high quality staff, who will strengthen the capability to achieve and obtain company and personal goals. There are a few things that need to be taken into consideration and they are review of current or new position, reference always to operational plans of the company, preparation of all information including draft

decisions clear and concise, have support from our top management team, have a product with

However, assets can be categorized into fixed assets and intangible assets. Fixed assets are tangible assets acquired by the business used in operations like property, plant and equipment. Intangible assets are assets of value without physical substance that are used in business such as licenses, patents, trademarks, copyrights and ect. The intangible asset is defined as ‘an identifiable non-monetary asset without physical substance’. (Deegan 2010) An asset meets the identifiability criterion when it is separable i.e. is capable of being divided from the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract,

Strategy: an organizations long term course of action designed to deliver a unique customer experience while achieving its goals.

Inspired by the heritage, Adidas know that a profound understanding of the consumer and their journey in sport is essential to achieving this goal. To anticipate and respond to their needs, it continuously strives to create a culture of innovation and creativity. By harnessing this culture together with their insights and knowledge of sport, Adidas push the boundaries of products, services and processes to drive a long-term strategic advantage. This, in turn, will drive value creation for their company and

Alfred Chandler(1963) defines strategy as ‘ the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals’. And Michael porter(1996) sees it as ‘Competitive strategy is about being different. It means deliberately choosing different set of activities to deliver a unique mix of value’.

Adidas wants to achieve the flexibility strategies which shorten creation and production lead times by continuously improving our infrastructure, processes and systems to react quickly to consumer

1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the

Strategy: Strategy is the plan of action an organisation prepares in response to, or anticipation of, changes in its external environment. Strategy is differentiated by tactics or operational actions by its nature of being premeditated, well thought through and often practically rehearsed. It deals with essentially three questions (as shown in figure 2): 1) where the organisation is at this moment in time, 2) where the organisation wants to be in a particular length of time and 3) how to get there. Thus, strategy is designed to transform the firm from the present position to the new position described by objectives, subject to constraints of the capabilities or the potential (Ansoff, 1965).

Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.

These areas are very well polished in Nike. The owners know the correct trigger points of every class of consumer, and thus, the motivating push is given to the exact point. Emotional branding is used by Nike in several instances and this has been one of the vital areas of its operations. Nike’s position in the market is such that consumers upon hearing the name of Nike are sure that they shall be getting state-of-the-art products. Though there is no scale of comparison to say that Nike is better than the competitors, yet the marketing strategy of Nike is such that consumers and buyers automatically believe that Nike happens to be the best in shoes (RamnathJk, 2015). It has motivated the buyers by getting deeper

A strategy is said to be a plan that is made for the long term success of a product or brand. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. Formulating effective strategies is a considerably long process in itself that combines analysing several factors, situations and issues that are already present in a company and looking to improve on them alongside trying to implement various innovations and ideas to collectively create a direction towards which they can move and direct the resources available to them.

Adidas is the second largest sportswear and apparels manufacturer (Dogiamis & Vijayashanker, 2009). By far, Adidas holds a market share of 22% (Dogiamis & Vijayashanker, 2009). Adidas had also registered the infamous ‘3 stripes’ as its trademark (Berntson, Jarnemo & Philipson, 2006). The founders of Adidas, Adolf and Rudolf Dassler had the vision of providing athletes with the best suited pair of shoes for their respective sports (Dogiamis & Vijayashanker, 2009). In efforts of achieving that, Adidas is had used the strategy of collaborating with important athletes to gain their insights on the products offered (Berntson, Jarnemo & Philipson, 2006). This contributes to the fact that Adidas had earned