What Is Adidas’s Corporate Strategy?

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Mary Jane Quinn BUS –421 CSA 4 TESC 0432752 Oct 2009 1. What is adidas’s corporate strategy? Was there a common strategic approach used in managing the company’s lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring? “Adidas’s corporate strategy has been all along to improve on athletic footwear so as to give athletes an edge in competitive events (Sunset, 2009).” Their common approach has been to merge and divest other sporting goods, and apparel and footwear entities, to implement a marketing strategic tool of matching their product line with famous athletes and sporting events according to their product line. Adidas’s goal has been to…show more content…
8.0 6.5 5.5 7.5 5.2 INDUSTRY ATTRACTIVENESS 3. Does adidas’ business lineup exhibit good strategic fit? What value-chain matchups exist? What opportunities for skills transfer, cost sharing, or brand sharing are evident? Prior to its divestiture, what kind of strategic fits existed between adidas’ core business and its Salomon business unit? “Adidas’ business lineup of footwear and apparel exhibits good strategic fit. “The combined businesses make adidas the second largest sportswear manufacturer in the world, a place neither company alone could hope for. Value chains present opportunities for cross-business transfer; lower costs for value chain activities and cross business collaboration. Also the use of powerful and well-known brand names. Adidas is the serious shoe for the serious athlete, while Reebok is the leisure shoe at middle price points. The mix complements each company’s offering. Prior to the divestiture of Salomon and Mavic the companies did not exhibit good strategic fit. Mavic the bicycle company was quite different from the footwear industry. Brand sharing was not evident and no skill transfer allowance. No good resource fit existed between 1998 and 2004. Difficulty to cross train
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