Adidas: Expansion Strategy Report - Business Development Semester 1

The report analyzes Adidas's expansion strategy, focusing on the potential to enter new markets, particularly in Europe. It highlights the importance of market analysis, and the opportunities within the sportswear industry, including the growth of athleisure wear. The report discusses the benefits of international business expansion, such as market diversification and competitive advantages. Based on industry data, the report suggests that the European market presents a significant opportunity for Adidas. The report concludes by emphasizing the importance of the European market and its potential for growth. It references studies that indicate the sportswear market's continued expansion and the increasing consumer focus on health and fitness as key drivers for the brand’s success.

Decision making and problem
solving

INTRODUCTION
Problem solving and decision-making are important skills for business and life. Problem-
solving often involves decision-making, and decision-making is especially important for management
and leadership. The report is about a large sportswear retailer brand namely Adidas that is growing fast
in three countries UK, Spain, and Australia with 8500 people. They want to invest back in the business
in order to sustain the steady growth. The report will cover two possibilities for the brand to develop.
MAIN BODY
1. Expand into a new country to market and sell the existing product lines within a new
marketplace.
In this today’s global economy, companies of all size are introducing operations in foreign
markets for expansion. The sportswear company can expand its business in Europe as there is a big
scope for the brand and several advantages including greater opportunities for market growth and
diversification. Here are the five benefits of international business expansion:-
 New markets
 Diversification
 Access to talent
 Competitive advantage
 Foreign investment opportunities
It has been observed that, many business expand internationally to diversify their assets, a step that
can protect their company’s bottom line against unseen events. For instance, the Adidas Company
which is currently operating in UK, Spain and Australia can expand to Europe. For example, if it expand
in such market where its competitors do not operate often has a first advantage to create strong brand
awareness.
Today, more and more Europeans wear sportswear for casual and leisure activities as well as for
sports. For example, many customers wear sports shoes or designer sweat pants to work and this is
called athleisure or sports-motivated segment which is fastest growing in sportswear at the moment.
Hence, as the expanding sportswear brand is the supplier of developing, then Europe market offers good
opportunities. Based on a study by Global Industry Analyst estimates that the global market for sports &
fitness apparel will reach total value of over $230 billion by 2024. Moreover, the United Kingdom is the
fastest growing national market in Europe. In fact, many expertise marketers suggest that sportswear has
become the most crucial and influential segment in apparel. Europe is considered as the third-largest

market for this segment & is supposed to keep that place for the coming five years at least. In addition
health and wellness considered as a priority among European consumers. Therefore, customers are
engaging more than ever in athletics & fitness, while new sports are emerging up and niche sports are
developing to new regions or segments.
CONCLUSION
REFERENCES