Strategic Management Assignment - Adidas
Added on 2020-10-22
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STRATEGICMANAGEMENT
Table of ContentsINTRODUCTION...........................................................................................................................3CASE STUDY OF ADIDAS...........................................................................................................3Company Overview....................................................................................................................3History.........................................................................................................................................3Vision And Mission Statement...................................................................................................3Strategic Choices Of The Company............................................................................................4Acceleration Plan........................................................................................................................4SWOT ANALYSIS OF ADIDAS...................................................................................................5Strengths......................................................................................................................................5Weaknesses.................................................................................................................................5Opportunities...............................................................................................................................6Threats.........................................................................................................................................6PESTLE ANALYSIS OF ADIDAS................................................................................................6Political Factors...........................................................................................................................7Economical Factors.....................................................................................................................7Social Factors..............................................................................................................................7Technological Factors.................................................................................................................7Legal Factors...............................................................................................................................8Environmental Factors................................................................................................................8PORTER'S FIVE FORCES MODEL:.............................................................................................8Bargaining Power Of Suppliers..................................................................................................8Bargaining Power Of Buyers......................................................................................................9Threat Of Substitutes...................................................................................................................9Threat Of New Entrants..............................................................................................................9Competitive Rivalry....................................................................................................................9RECOMMENDATION...................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
INTRODUCTIONStrategic management is a continuous process of planning, analysing, assessing andmonitoring every necessary activity that is required for an organisation to achieve its goals andobjectives (Hitt, Ireland and Hoskisson, 2012). In such dynamic business environment, for abusiness to sustain its position and competitive edge, it is crucial to implement strategic plansand take strategic decisions. Strategic management helps the firm to assess its present situation,plan out strategies, implement them and effectively analyse its effectiveness. The followingreport is based on strategic management of Adidas which is a German multinational firmheadquartered in Herzogenaurach , Bavaria. The report focuses on a detailed case study of thefirm, analysis of its strategic position, company's strategic direction and recommendation forimprovement (Doz, 2017). CASE STUDY OF ADIDASCompany OverviewAdidas AG is a global corporations that deals in designing and manufacturing of sportshoes, clothing and sport accessories. It is the second largest sportswear manufacturer in theworld, after Nike. The products developed by Adidas are accepted and worn by people all aroundthe world. The company focuses on developing high quality products that could sustain even inthe worst situations.HistoryAdidas (now Adidas AG), was founded by Adolph (Adi) Dassler in 1920. By 1924, heand his brother Rudolph Dassler started working together. The name by which they sell theirproducts was Gebruder Dassler Schuhfabrik which is translated to Dassler Brothers ShoeFactory). The firm equipped its first athletes at the 1928 Olympics in Amsterdam. The quality ofthe company's products at that time was so outstanding, that athletes wearing Adidas foot wearswon more than 800 medals and world records.Vision And Mission StatementVision: The vision of the company is to be a global leader in the sports industry andemphasizes on building brands with passion for sports and sporting lifestyles. The company iscommitted towards strengthening its products and brands to improve its competitive position.
Mission: The mission statement of the company states, “We are innovation and designleaders who seek to help athletes of all skill levels achieve peak performance with every productwe bring to market. We are consumer focused and therefore we continuously improve thequality, look, feel and image of our products and our organisational structures to match andexceed consumer expectations and to provide them with the highest value.”Strategic Choices Of The CompanyBusiness plan of Adidas is based on three strategic choices with emphasis on expandingits customer base (Grunig, 2013). These choices are described below:Speed: Adidas focuses on providing the customers the best possible products where andwhenever they desire. The aim of the company is to become first true fast sportscompany of the world.Cities: With rise in urbanisation, the company wants to implement its strategies towardsattracting more customers living in urban areas of the world. The firm wants to over-proportionally grow its share of market in selected cities of United Kingdom, Japan andmany other countries.Open Source: The firm leaves its gates open for consumers, athletes and partners to co-create sport culture along with the company. The firm through collaboration andinnovation aim to develop the culture of sports throughout the world.Acceleration PlanAdidas is formulating its plans to successfully implement these strategies and taking newinitiatives to effectively execute these new plans (Eden and Ackermann, 2013). These initiativesare as follows:Portfolio: The company is working towards sharpening the emphasis of its brandportfolio to achieve less complexities and more focus. Concentration of the companywould be completely on Reebok and other core competencies of the firm in apparels andfoot wears.Digital: With ongoing technological advancements and innovations, Adidas is planningto strengthen its online image with its relatively young workforce. The aim would not justbe limited to establishing a direct relationship with the customers, but to enhance theoverall performance of the firm.
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