Adidas operation management2 Operation management Adidas company product differentiation Adidas growth and development history has been a great insight and motivation for the workers and stakeholders in the business. In today's business environment, competition has been very tough. Therefore, the companies aiming to outwit other business in the market competition has to ensure there is uniqueness with their strategy to provide product differentiation(Yang and Luo, 2019). The company has been facing severe completion until the time it began to devise ways of winning the market(Tomlinson, 2005). The company has faced a generic competition which is not easy to overcome with weak strategies. With generic completion, the company has to create a market advantage by servicing ways to attract customers or making product differentiation. Adidas uses the following policy to create a market opportunity gap by ensuring product differentiation via the following procedures(Wright, 2019). All the above strategies require the company to use a sophisticated management team who conspire to ensure company growth. How Adidas uses the product differentiation strategy There are several factors considered by Adidas when using product differentiation. These factors help in the actualization of the company competition capability(Yang, 2019d). The company always ensures several innovative measures are taken. Adidas has been a bit company whose reputation is known worldwide. The company has arrived and mainly used several criteria
Adidas operation management3 to achieve its market competition(Yang, 2019a). The various considerations embraced when creating market opportunity through product differentiation is as follows. One of the most valued factors is to emphasize mostly on its unique product features. Despite the similarities in the product with those of other companies in the generic competition, the company products have their uniqueness(Yang, 2019b). Some of its product features are, therefore, relatively different. To create a Niche, the company has to put more effort into the uniqueness of the products. For example, Adidas shoe wear has the following unique features. First is that they are a comfort boost. All runners will always focus on the comfortability of the shoes. Under thorough research, the company has ensured that the shoes are very comfortable when running. And therefore, many customers have been moved to purchase and even spread the goodness of the products. Also, the shoe has a spring that boosts the arch. It has a lightweight bridge between the forefoot and front foot(Sköld and Dymek, 2019). The design helps the shoe to adapt to the running surface with ease and without straining. The boots are also of the upper class. It is now revealed that a new invention has been done. And shoe product has been developed that has knitted, seamless uppers that take a form of socks. The shoe is designed to have a soft upper that flexibly can bend during leg movement. It is also designed with an integrated three-dimension wireframe. The frame is said to provide a combination of support and adaptability to changes and temperature. The company has emphasized these new features, and therefore it has ensured attraction to the customers hence creating a market gap. The inventions and inclusion of the unique and integrated needs if the customers have enabled the company to come up with these unique features. Moreover, the company has extended its product line to fit its customers' needs. With insatiable human wants, everybody will want to have the best property than ever. The companies
Adidas operation management4 producing a particular product similar, may at one time find or realize a specific level of the product and be comfortable(Dibenedetto et al., 2019). However, it is always not enough to be good when able to be the best. Adidas has extended its line of operating products to meet customers' interest. Adidas has extended its product line to meet customer demand. Previously, Adidas was producing sport wears(KAL and ABED ALGHANI, 2019). However, today it has been a general dealer as it can create and sell the same product to all the customers worldwide. Adidas product was initially slated for the sports. Today Adidas can supply wears to the general public and hence increasing the market demand of the product. The decision has risen after the company has realized that the general public is the willing majority customers, and thus they need to purchase the products even under low prices. The company has planned and ensured to establish production centers to reach all the customers(Costa, 2019). The company is also working hard to factor in the demand of middle- class customers by designing products that can best fit them, and that can be of interest to them. The objective is met by regulating the prices. And it was ensuring that there is a way devised to suit their needs. The action has made it attractive, and hence the general public has now become the primary customer for the Adidas products. The company is also extending the line of production by making other wears for the general public. The products are not only designed for the game but also for formal dressing. The company has also maintained its reputation by ensuring the originality and materialism is kept at high quality. Extensive experience has been another factor that Adidas is using to ensure there is differentiation in production. Adidas has been operating under a slogan that is based on five performance criteria of more robust, smarter, more relaxed, faster, and more natural. The company has worked under this slogan for a long duration, which has been the future of the
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Adidas operation management5 business. It is more impressing for all the workers to operate in mind that what they shall produce is always good, more so to the customers(Yang, 2019c). The company ensures this objective by hiring the most qualified and experienced experts. The company also maintains its experienced personnel to ensure no downgrading. The company will always achieve its objective and win the most customers with a high product. The experience with the workers is based on the top quality products. The production typically has been tailored on the daily innovations. The innovations are also attached to the company product benefit slogan(Collister, 2019). The company also has impeccable experience in the market changes. And therefore, it always works to improve the taste of its products. The company has a wide range of expertise. It is now believed that Adidas has almost all the customer need options. The company has also enhanced product differentiation through substantial investment in product marketing, advertising, and celebrity endorsement. However, the company product may be serving the same purpose as that of the competitors, and the company has ensured popularity through massive advertisements. Marketing has also been a thing about the company. The company is now well known over the world(Aurel et al., 2019). The unique product features have boosted the company product marketing, and hence no customer wishes to make a different option from that of the Adidas company. The company products are well known, and therefore, they gain a difference in the market. The originality and uniqueness of Adidas products and top quality have been proven by most of the customers. The company has always been seeking the needs of the customers. And the production has been done regarding the customer tastes and preferences. The use of a lot of finances to vest on the advertisement gives typically back to the company financial inflows when the sales increase. The ad has been fruitful to the company as it has sold as many products as possible(Graham et al., 2020). The company has also used
Adidas operation management6 celebrities to make their products accessible. The company developed and grew through selling its products to the sportspeople who are known worldwide. The company has gained popularity through such people as they have been very loyal customers who are known worldwide as they are watched by their guns all over the world. The famous people in the world have been carrying their activities while putting on Adidas garments. Sportspeople have testified that Adidas products are the best in terms of comfort and even cost. The other factor is the company logo. It is designed with three ascending bars that speak the power of the company(Behar et al., 2019). The company has a very peculiar logo which is known all over the world. The company has been using the same logo in advertisement and product promotion hence the popularity. The company products are designed with the same logo, which is known to predict the love and its commitment to games and sports activities. The company typically has a necessary foundation under sports. It is the second after Nike. Adidas has unique product texture, which is very attractive and original with durable and perfect material to meet the purpose. It has specialized in both national and multinational trade. All its customers have firmly believed in its products. The company has also established product outlets and intermediaries, which help in reaching the customers' market. They have online-based stores that serve the international market and also have international marketing departments that help in dealing with customer tastes and interests(Torvinen et al., 2019). Every moment a customer acquires goods from the company, he or she is well appreciated. Due to the company's popularity, most people ensure to purchase and wear Adidas products to improve their status quo.
Adidas operation management7 Adidas ability to lower prices Adidas has been using a cost leadership strategy to increase its sales. Like any other business, Adidas has worked downs and ups to ensure there is the maximization of the profits. The company management team has been able to do a thorough analysis of the raw material. Therefore they have based their quotes on the bulky raw materials, which generally reduce the cost of the raw materials(Werner et al., 2019a). The company has been doing the investigation on the supplies which can source and provide raw materials at a favorable cost, which enables the company to predict a low price for the products. The company also has been doing price equilibrium. By ensuring that the level of the customer income determines estimates of the products. Customers of the middle class who are the majority have the products at a relatively low price that can give the company just a little profit per product. However, it is compensated through big sales, which are made under middle-class customers. The middle-class customers have been able to promote the company sales by purchasing a lot of products at relatively low prices. Within the financial period, the company can sell very many products to middle-class customers hence making profits at economical prices. The company has also been able to produce goods that can fit the financial position of middle-class customers(Lussier, 2019). The popularity of the company has enabled it to serve a wide range of multinational customers. The customers are very willing to purchase at high prices after realizing the goodness of the products. In some cases, the sales prices are based on the number of goods purchased per person or per order. The company can also choose to sell under low prices for the new customers and finally increase the costs. Due to the popularity of the company, the amount can be reduced since no much need for advertisement. The company can, therefore, choose to lower costs to the customer and ensure it is compensated using the amount aimed for the ad.
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Adidas operation management8 The company has also been able to lower the prices of some goods and increase rates of the other assets so that there can be compensation(Burich et al., 2020b). Some products are of high demand than others. The company will always ensure its products are sold depending on the urgency and age. Some products, for example, shows can be sold at a relatively high price but lower the price of the games kits to compensate for the price hence selling more goods. Goods produced at a low cost will also predict low prices. Therefore companies mostly ensure the sale of goods increased through lowering the prices while maintaining the profit margin. The most important thing when making sales is to do market research and strategize on keeps the product profit margin(Burich et al., 2020a). No matter the price of the product, the company should ensure the profit margin will either increase but not decrease. If the cost of production is high, it follows that the selling price has to grow, and the reverse is true. Adidas company has worked closely with their marketing departments from overseas, and therefore more customer feedback is availed. The company always is making product difference by reducing the prices at the relevantly little amount, which seems insignificant to the company but psychologically attractive to customers. The upper-class customers do not like cheap gods, and hence they will always vie for costly goods. The reason for upper-class customers to like expensive products is capable of improving their game and status quo. The upper-class customers also have very high levels of income, and therefore, they feel comfortable when dealing with expensive goods(Munson et al., 2019). All products supplied to upper-class customers are usually of high quality and prices. The company ensures it provides this kind of market with very high quality at high prices. The high rates and benefits are used to compensate for the lower costs and losses made when dealing with middle-class customers, among others. The company ensures the product uniqueness is
Adidas operation management9 manifested to these top customers who but products without bargaining the prices. The company provides no losses made when making sales to upper-class customers. Hence, the company has even many customers who have bee maintain from middle class to upper class after meeting their fortunate. The use of a cunning price strategy has been used by Adidas company. It has been taking advantage of the places where the market is favorable to its products(Kahn and Baum, 2020). The company can find that in some new areas, customers view their prices as if they are low when the company knows they are high comparing to the cost of production and sales. The company can, therefore, raise its prices to fit the customer's expectations. Some other times even customers would buy goods due to their quality without valuing the costs. The company can also use psychological prices to win customers. If the market price of a product is ten dollars, the company pricing strategy may be used to reduce the cost by reducing the amount to the lower limit of the amount. It is hence convincing the customers psychologically that they are going to purchase the price at a relatively low cost(Page et al., 2019). The company can also use the pricing war strategy to ensure that they win the market when the competition is high. The price war hurts the competitors but the advantage to the buyers; however, it can be solved. The company will always purpose in providing the best of its efforts to outdo the other competitors. The company can outwit the lower price effects by compensating during the peak season. After winning the market, the company can now regulate its prices to offset the uncured loses. The Adidas company has recorded the best pricing strategy; hence it is about to win the competitors. Adidas has ensured that there is low product and sales cost, which is brought about by proper allocation of the resources and production process by use of supper modern technology, which is of very high speed(Kahn and Baum, 2020). It is now well known that Adidas has closed its old
Adidas operation management10 factories and replaced with very high-speed factories which are doubling other companies production rate. The success of Adidas supply chain Adidas is one of the companies which has been noticed to have a high technological integrated supply chain. It is compounded by the robust network approach and high-speed factories(Junejo et al., 2019). The company supply chain management is characterized by an exceptional understanding of market trends and demand forecasting. Adidas has an agile supply chain that has been serving a wide area of operation. The company has a wide field of service, which is worldwide. The Adidas customers increase day by day and even in different points of the world. Therefore the company requires a highly strategized supply chain. Adidas has established production centers for areas that have high market demand for Adidas products. The company has also had very many warehouses all over the world to ensure maximum supply to the customers. Adidas has already established high-speed factories that generally serve the market under contractors and supply agents overseas. On its supply, Adidas has been focusing on the following factors to achieve its objectives(Kim et al., 2020). The company is aiming to become a fast sports company, which implies accelerating things up manifold. The company has ensured the achievement of this objective by using very speed factories which have been toping in production rate with minimum am latency. The factories e believed to produce several goods within a short period. The o eject can e improved by using warehouses to locate products near to the customers and also making the customers demand a perspective to ensure there is satisfaction. The company has been making a thorough research and demand prediction for sports activities. However, it is now awful that the demand may go down as a result of the current condition caused by the coronavirus, which is affecting sports worldwide(Welker and
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Adidas operation management11 Nikula, 2019). The company supply chain is based on creating a seamless consumer experience since business should be consumer-centered. The company is up to transforming the way the Adidas creates and produces. The company has been thriving under various considerations during its production processes. The company has been ensuring no running out of stock by using speed factories and also producing goods, considering the demand forecasting(Lanpher et al., 2019). It is also ensuring the production of goods through creating in seasons. The company has been looking for market trends and using such data to produce fresh products. The company is also prepared to respond to seasonal demand by creating supplies with a short lead-time response. The company has been manufacturing goods at very high speed and, therefore, able to react quickly to seasonal demand. The ability of the company supply chain to satisfy such yearly requirements is considered to be an excellent characteristic. The company can now reach the market broadly at the appropriate period(Zagel et al., 2019). The company has a minimal lead time, and hence it is considered the fastest company in the world. Distribution network The company has been concentrating on optimizing the speed of the company to supply goods to the stores. The company has recently opened new distribution centers in German and China. The new distribution centers are tailored to provide products to increasing new customers in China and German. It has numerous warehouses and distribution centers worldwide. The Adidas company is aiming at reaching the customers with minimum or no lead time. Therefore it has to improve its strategy, which has developed(Cauwood et al., 2019). The company has a highly sophisticated management team that is alert about the market demand tend s and has appropriate supplying network and distribution channels, which are finished through close
Adidas operation management12 market research and operational supervision. The company has a successful supply chain, which has been rooming in the market. The company is now known to have an approximate of 2500 retail stores and 13000 mono franchise brand stores(Cauwood et al., 2019). The company also has around 150000 wholesale warehouses(Manz et al., 2019). These warehouses help the company to quickly meet its increasing customer demands(Ellis and Schwartz, 2020). The Adidas company also has a well-coordinated chain of supply. The company also has technologized its chain of supply service to customers by creating an online portal for customers to check whether goods are available in store and or request for availability. The platform also allows the customers to order for the shipment and even pay online. The online service is paying attention to many, which can serve the customers across the world. Through this technology, the company has been supplying goods to the customers after ordering and paying online. The company also is for use on the sale of the product through wholesale and even small quantities. The packaging is done upon payment. All these efforts have made the Adidas supply chain successful(Werner et al., 2019b). The Adidas supply chain has a high-speed communication system that communicated to both the strategic department through the logistics department and to the other stakeholders to ensure the process is successful. Another robust activity that has empowered the company supply chain is strategic planning, which has been of great importance. The company's strategic planning department has ensured there is a minimal lead time in supplying products to the customers after placing orders. The company has minimized the cost of supply(Poegl et al., 2019). Transport the company is using a sensitive system of transport that is reducing the cost of transport. The company uses its premium means of transportation to transport goods to the stores. The company there requires the distributors now to use home-based means to reach the
Adidas operation management13 customers; hence no cost of shipping from distributors to the customers. The customers usually cater for the transportation of goods from the distributors' warehouse by picking the products from the nearby warehouses except for those making bulky orders(Blekanov et al., 2019). For such customers, the company typically give them after sales device by ensuring goods are taken to their stores. The successful effects of the Adidas supply chain have made Nike a competitor to lower its prices to cover its low market demand. Failures of the Adidas supply chain Based on the company's weakness, the company has been painted a bad image by the poor working conditions of its overseas factories. The companies have not been proofing the top name of the company that has been known all over(Madura, 2020). It has been caused by distance monitoring, which does not enforce seriousness in production. The overseas company management should be finished and restructured to portray the right image of the company. Due to the poor working conditions by offshore intermediaries, the company has not been recording good cash inflows through such branches. They have been recording a low-profit margin over a long period. The company should realize the importance of improving the condition of such companies to ensure quick supply of goods to the customers under the overseas market. These companies have such poor working conditions due to poor management. However, the product is of the same value and quality despite the poor working conditions in such companies(Xu, 2020). The company products are also getting increased market demand overseas, even with such working conditions. Secondly, the company has not established e-commerce in the united states of America. Since America is one of the superpower statuses, it should have things done with much
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Adidas operation management14 sophistication. The company has not been able to satisfy them German market due to poor resource allocation to such areas(Deepak and Jeyakumar, 2019). Finally, there is another nagging issue if the company production system breakage during the adoption of the new technology, which is going to be enhanced by launching the speed factories to the remaining production centers. And now, due to the coronavirus outbreak, it is most likely that there will be challenges when supplying products to the destination, and production activities may go down(Deepak and Jeyakumar, 2019). The company is aiming at introducing some robots which will perform duties under remote control to contain the current situation whose end is not easily predictable. Conclusion Adidas company has more strengths than weaknesses, and hence it is most likely to be the most efficient company to both customers and stakeholders. The company has a well laid down operational strategies and, therefore, is going to outwit the market worldwide. Adidas company has very many market advantages of logo, popularity, and ability, among many other factors. It has more capability to cover the losses and record a positive cash inflow. Adidas is one of the best companies that can be emulated by growing companies. It has well laid down operation strategies and proper resource allocation. The management departments are equipped with an appropriate system of communication, which ensures there are clarity and oneness hence promoting teamwork among the employees. The company has a good business culture than can be applied by other growing companies. Adidas has posed a challenge to its competitors in terms of production rate, among other factors.
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