Adidas: Changing Trends of Online Platforms and Investment in Innovation

This report analyzes the changing trends of online platforms and investment in innovation as a solution for Adidas. It includes a PEST analysis, SWOT analysis, research question, recommendations, and conclusion.

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Table of Contents
INTRODUCTION...........................................................................................................................3
PEST analysis:........................................................................................................................3
SWOT analysis:......................................................................................................................3
Research Question: .........................................................................................................................4
Recommendations:...........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Consumer trends are changing very fast in the external environment because of many
external factors that are affecting this process. Present report deals with Adidas as a global brand
managing the term with development of perspective solution to deal with the impact of such
changing external environment (Busco and Quattrone, 2018). There is analysis of then trend of
continued trend of growing online platforms and the prospective solution is investing in
innovation to deal with its impact.
Analysis:
External analysis:
PEST analysis:
Political: Adidas is affected by the taxation system, supply chains, political pressures while
selling the products online.
Economic: Adidas is affected by continuous challenges related to high importing & exporting
regulations (Ghauri, Grønhaug and Strange, 2020).
Social factors: Adidas have to deal with the continuous changes in the gender, lifestyle and age
of their target segment of customers. Their core focus is in health conscious buyers who are
having preferences for sports and according to that they have to keep a pace with preferences and
trends.
Technological factors: Adidas has a opportunity to optimize the performance of professionals
and coaches in the sports industry for development of durable solution to athletic problems.
SWOT analysis:
Strength: Adidas is one of the premium sports brand that is recognized in every corner because
of relatively high quality products.
Weakness: Adidas outsources production to eastern manufactures this strategy does not allows
the brand in having cost cutting.
Opportunities: Adidas has a opportunity to enhance their online presence by having a
opportunity to the growing industry.

Threats: Adidas have to deal with high threat of competition. For Adidas and Nike there is no
differences in qualities or product lines.
Research Question:
“To analyse the changing trends of online platforms and investment in innovation as a basic
solution to it”. A case study on Adidas.
Research methodology:
Research approach: It is a plan or a procedure that includes the steps of broad assumptions with
detailed methods including data collection, making its analysis and further interpretation is
drawn. Research approach is divided in two categories that is collecting of data and further data
is analysed.
Research philosophy: It is a belief that is the way about which data can be gathered, further
analysed and then used in a particular report.
Quantitative: It is a type of Data where the value is measure in form of counts and numbers
where a unique value is associated with each set of data (Strydom and Rudansky-Kloppers,
2016). It is used for describing the numeric variables.
Qualitative: Qualitative information is the data that approximates the characterizes. It is the data
that is observed and recorded it is non numerical in nature generally collected through one to
one interviews, focus groups, similar methods.
Primary data: It is the data that includes the first hand information collected by researcher by
use of various means such as interviews, experiments and surveys. It is collected in presents
research by analysing the response of the target segment of respondents. Presently there is use of
questionnaire by collecting information from 10 respondents that includes the customers for
evaluating their responses (Boeuf, 2019).
Secondary data: It includes the information that is already existing and is not a new source. It
consist of existing sources from newspaper articles, journal, books etc.
Sampling: The whole target population cannot be selected so there is need of small sample in
present report there is a sample of 10 respondents of customers is used for making he required
analysis of the research topic (Meier and et. al 2019).
Questionnaire:
Question 1) Do you have preferences for online platforms or Frequency

offline platforms while making purchases of sports related
products?
a) Offline 3
b) Online 4
c) Depending on feasibility 3
Interpretation: From the above mentioned graph it can be interpreted that majority of
respondents that is 40 percent have preferences for offline availability of platforms. 30 percent
have for online and rest believe that it depends on their feasibility.
Question 2) Do you believe that online purchases provide
more convenience as compared to offline mediums?
Frequency
a) yes 5
b) No 3
c) Sometimes 2
3
4
3
a) Offline
b) Online
c) Depending on feasibility

Interpretation: It can said from above mentioned graph that 50 percent of respondents believe
that online mediums provide more convenience to users. 30 percent feel that no it is not the case
and 20 percent believe that sometimes it provides convenience.
Question 3) Do you believe that there is need of timely
innovations for Adidas to cope up with the changing
customer requirements?
Frequency
a) Yes, strongly agree 2
b) No, disagree 3
c) Not always 5
5
3
2
a) yes
b) No
c) Sometimes

Interpretation: According to view of respondent Adidas needs to have timely innovations as 20
percent of respondents agree to this fact, 30 percent disagree that they do not need innovations
and rest 50 percent felt that not always but sometimes Adidas is part of timely innovations.
Question 4) Do you feel that present online range of
products of Adidas is sufficient or there is need of higher
range as compared to their physical outlets?
Frequency
a) Yes wide range is needed 4
b) No, there is sufficient product range 3
c) Offline and online have similar range 3
2
3
5
a) Yes, strongly agree
b) No, disagree
c) Not always
4
3
3
a) Yes wide range is needed
b) No, there is sufficient
product range
c) Offline and online have
similar range

Interpretation: From the above graph 40 percent of respondents believe that there is need of
wide range of products in Adidas. 30 percent felt that they already have the sufficient product
range and rest 30 percent have a believe that online and offline have similar range.
Recommendations:
From the above made analysis there are some of the recommendations that are drawn as
mentioned below:
 Adidas can enhance their preset market share by investing in manufacturing nutrition
supplement on online platforms. There can be approaching to new developing Asian
market segments in order to approach to a complete new market (Guderian and et. al
2020).
 Timely innovation is a tool that can be used by Adidas for he purpose of attracting
customers. Such as there can be adoption of minor sensors & processors that can be used
for enhancing the capacity of their stores.
 There is lack of advertisements that is one of the major reason for low competitive
advantage for Adidas. So there is need to enhance their advertising procedures there can
be use of digital marketing tools and also different Social media platforms for the purpose
of attracting customers. There can be developing campaigns to involve customers.

CONCLUSION
From the above discussed analysis it can be said that the external environment is
changing very fast that is leading to creation of timely innovations in organisations for the
purpose of increasing the present market share.

REFERENCES
Books and Journals
Busco, C. and Quattrone, P., 2018. Performing business and social innovation through
accounting inscriptions: An introduction. Accounting, Organizations and Society, 67,
pp.15-19.
Ghauri, P., Grønhaug, K. and Strange, R., 2020. Research methods in business studies.
Cambridge University Press.
Nambisan, S., Zahra, S.A. and Luo, Y., 2019. Global platforms and ecosystems: Implications for
international business theories. Journal of International Business Studies, 50(9), pp.1464-
1486.
Strydom, J.W. and Rudansky-Kloppers, S. eds., 2016. Introduction to business management.
Oxford University Press Southern Africa.
Guderian and et. al 2020. Innovation management in crisis: patent analytics as a response to the
COVID‐19 pandemic. R&D Management.
Boeuf, B., 2019. The impact of mortality anxiety on attitude toward product innovation. Journal
of Business Research, 104, pp.44-60.
Meier and et. al 2019. Unlocking innovation in the sport industry through additive
manufacturing. Business Process Management Journal.