Media Management Report: Adidas

This report analyzes the success of Adidas, a German-based company, in media management. It uses a report format with sections on introduction, methodology, analysis, findings, and conclusions/recommendations. The analysis employs the BCG matrix, Ansoff's matrix, and Porter's five forces to examine Adidas's growth strategies. The methodology involves a deductive approach with secondary data analysis from various sources like case studies, articles, books, and journals. The report details Adidas's history, recent developments, and application of the chosen frameworks. Findings highlight Adidas's success in various aspects of media management, including strategic, marketing, human resource, production, procurement, and organizational management. The conclusion summarizes Adidas's achievements and offers recommendations for further improvement, focusing on customer satisfaction and adapting to market changes.

University
MEDIA MANAGEMENT
Name:
Lecturer’s Name:
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Executive Summary
The below study represent the success of a reputed organisation situated in Germany. The study
is presented in a report format and thereby follows the structure of a report. Five basic sections of
the study have been highlighted which are- Introduction, Methodology, Analysis, Findings and
Conclusion and recommendation. The Study focuses on analysis the success or the growth
achieved by the organization in the past years through several growth strategies such as BCG
matrix, Ansoff’s Matrix and Porter’s five forces. Based on this analysis, fruitful recommendation
has been provided for the development of the company.
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Table of Contents
Introduction......................................................................................................................................4
Methodology....................................................................................................................................4
Analysis...........................................................................................................................................5
Findings.........................................................................................................................................11
Conclusion and recommendation..................................................................................................11
Reference.......................................................................................................................................13
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Introduction
Media management is considered to be a discipline of business administration which identifies as
well as describes operational and strategic problems and phenomena within the leadership of the
enterprises connected with media. It consists of the operational functions within a business
organisation such as procurement management, organisational management, production
management and strategic management. Media management is basically the management style
that focuses on two key functions- ability of supervising and motivating employees and ability
for operating facilities as well as resources in a cost-effective way. Media enterprises which act
as a source of media management are considered to be strategically organised institutions whose
prime work has been to generate and promote media.
The study deals with portraying of the business success achieved by a company in the field of
media management. The concerned study follows up a report format which consists of the
analysis and discussion of the business success achieved by the company. A critical analysis on
the chapters of media management of a selected organisation is being carried ou5t for better
understanding of the learner. After carrying out the analysis and discussion, it follows up to the
recommendation part which consists of fruitful suggestions that the company must incorporate
for facilitating operations and functions properly and achieve higher growth and development.
Methodology
The study is being carried out through developing a critical analysis of the success achieved by
the company in every aspect of development. Research is done considering a company named
Adidas headquartered in Germany. According to the words of Jin et al. (2014, p.90), there are
generally four kinds of research paradigm based on which the research could be conducted which
are as follows- pragmatism, positivism, realism and interpretivism. Entire research is done
considering a positivity philosophy which enable the researcher consider real and authentic
sources for researching the relevant contents for reaching the depth of analysis. As per the words
of Chua and Banerjee (2013, p.240), positivism allows to gather positive values and science
based realistic research which helps the learner attain appropriate knowledge about the
concerned matter.
The research approaches which guide the researcher for conducting a specific research include-
deductive research approach and inductive research approach. The researcher selects deductive
research approach and even conducts a secondary data analysis. The study is a descriptive one
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and hence descriptive design is to be followed throughout. As per the statements of Tsimonis and
Dimitriadis (2014, p.340), the secondary data analysis is conducted on gathering secondary data
sources such as case studies, articles, books and journals. This enhances the research skills of the
researcher since various journals and articles are searched for doing a particular project.
Secondary data sources are at times irrelevant since the contents of the journals and articles
might not be wanted by the researcher and it consumes enough time to gather information on a
particular topic.
After the data collection procedure, the researcher focuses on analysing the data with the
available facts and details on the research topic using tables, graphs and charts. Since this is a
qualitative research analysis, hence the chosen data must be from appropriate journals and
articles and no us of any primary data is supported. The qualitative representation of the data
gathered is supported through diagrammatic representation of Ansoff, BCG matrix and porter’s
five forces. Relevant theories and models of business success under media management are to be
followed for analysing the provided data and information.
After the analysis is being conducted, the researcher discusses the findings that are derived
through the analysis of the study. Relevant findings are being extracted through the analysis of
the study. Then based on the discussion of the study, a conclusion is derived and few basic
recommendations are suggested which would be utilised to improve the conditions of the
business or the selected organisation.
Analysis
The study is being conducted based on the case study of Adidas and how it has achieved
business success overcoming the loopholes. In the field of media management, it has achieved
potential success in strategic management, marketing management, human resource
management, production management, procure management and organisational management.
Background and history of Adidas
According to the observations of Aral et al. (2013, p.10), in the year 1924, an individual named
Adi dassler, who was by profession a cobbler along with a ken sportsman commenced a shoe
company with the support of his brother Rudolf (strategy-business.com, 2016). He kept simple
methods and principles for running the shoe company. He used to observe athletes, conversed
and communicated with them regarding their needs and based on that conducted an experiment
their problems by providing novel views. As per the opinions of Munar et al. (2014, p.50),
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innovation was the key concern of Adi while his brother focused on the selling criteria and
technique. Both of them began to achieve success from the very beginning. In the year 1925, Adi
started to begin submitting almost hundreds of sports shoe patents. They became the first to
produce hand-forged studs along with soccer boots with studs of nailed leather. The company
Adidas is headquartered in the Herzogenaurach in Germany.
According to the views of Pfeffer et al. (2014, p.120), the company was ranked in the position of
61th brand amongst the most valuable brands of the world which are the leading forerunners
across the entire world. It consists of innovative companies more than 92 in number and had
successfully positioned itself as one of the leading sports companies in the global market.
According to the observation of Mergel (2013, p.125), it is basically known for selling and
manufacturing sports-related products such as shoes, bags, watches, shirts, eyewear, clothing and
several other accessories. Both the brothers aimed at forming two distinct organisations - Adidas
and Puma. They started with nothing and today in this world; they are the owner of €14.88
billion and thus has ranked it to be the second largest or biggest sportswear company for
manufacturing products of sports across the entire world in the year 2012 (successstory.com,
2016). As per the discussion of Hays et al. (2013, p.230), the acronym for Adidas had been “All
Day I Dream about Sports”.
In the early years, a frightful rivalry grew among Puma and Adidas since both are owned by two
of the brothers. No sign of reconciliation has been observed in the past years whereas the rivalry
or the competition has grown with the success received by both the companies. As per the
perspectives of Trainor et al. (2014, p.1205), in spite of the frightening rivalry among the
competitors including PUMA, Adidas had been still flourishing with new, distinct and innovative
strategies and ideas which is helping to design new products. This has, in turn, supported the
company in maintaining its reputation against the leading brands such as Taylormade Golf,
Rockport and Reebok.
Recent developments
The company along with the slogan goes simultaneously which states ‘Impossible is nothing’.
The company has been in harmony for few decades in the present time along with its clubs and
sports figures. According to the notion of Ngai et al. (2015, p.40), the athletic prowess and
sporty attitude had been an identity from the dawn of its establishment. The company has grown
much in its creation of brand awareness and ensuring loyalty to the customers along with
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devising of new strategies for marketing. Recent developments eventually include the
improvement of the company by selling the products to biggest identities and in the games of
Football, Rugby, Cricket and so on. The company has gained successful achievements in the area
of media management especially in its human Resource management.
Porter’s five forces
The analysis of the company is eventually done through the Porter’s five forces which consists of
five prime components- bargaining power of the suppliers, bargaining power of the seller's,
threat of entrants, threat of substitution and competitive rivalry. In the field of human resource
management of Adidas, these five forces are required to be determined. As per the findings of
Moretti and Tuan (2014, p.130), the prime focus of the HR department of Adidas had been to
recruit finest and greatest human capital or talents from any corner of the world. They look for
the diversity and uniqueness in order to recruit extraordinary individuals with proper knowledge
of values, cultures and morals. According to the opinions of Mergel (2013, p.330), the prime
focus of the HR department of Adidas is on defining individuality through intercultural and
interdisciplinary aspects. Hence, the power of the company as a supplier lies within the
determination of price in the market and attracting customers across the world through ensuring
brand loyalty and image.
Figure 1: Porter’s five forces
(Sources: Fan and Gordon, 2014, p.80)
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Being a supplier, the company determines the level of supply and stock to be created within the
organisation. In the views of Fan and Gordon (2014, p.80), the company has the authority to
bargain since they themselves are the manufacturer of their products. The bargaining power of
the buyers could be determined when the company would have large number of buyers and their
demands are quite observable by the company in matter of reducing price. The company faces
threat of new entrants or the firms producing identical products such as Reebok, Nike and so on.
Depending on their moves, the firm needs to maintain and devise new strategies of pricing which
basically defines the structure of an oligopolistic market. In the ideas pertained by Van Iddekinge
et al. (2016, p.1830), the company maintains few unique strategies such as innovative culture,
posing challenges to themselves for breaking with the convention and embracing changes in
order to push the circumference of services and products. The company emphasises on
possessing strengths for facing market competitiveness and maximising the financial and
operational functions of the company. New employees are to be recruited for strengthening the
supply base of the company. Ample new entrants could be focused upon to deal with the
immunity power of Adidas to compete with them and hence it determines of a perfectly
competitive market.
Threat of the substitutes is one of the most powerful forces that help to analyse the functioning of
the HR department of the company, Adidas. In the perspectives of Ramchandani et al. (2015,
p.100), there are loads of substituted companies present in the market which are a threat to the
leading company Adidas. The substitute companies could attract customers from the entire world
and devise new strategies of innovation and setting up their prices. In order to overcome the
threat, the company Adidas is supposed to create a specific work environment which stimulates
passion, team spirit, achievement and engagement. The company is eventually focused on
expanding culture based performance upon a strong and powerful leadership.
As per the statements of Grünig and Morschett (2017, p.60), competitive rivalry is another most
powerful forces that could be analysed for determining the power of the company’s media
management. Measuring the degree of the competition is particularly considered to be the most
dominating force operating in the market. Hence, through the Porter’s five forces, the market
determination of Adidas is done or performed.
Ansoff matrix
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According to the suggestions of Hussain et al. (2013, p.205), the Ansoff Growth matrix is
considered to be another specific tool for marketing which helps the business for determining its
product along with the growth strategy of the market. The four quadrants of the Ansoff matrix
contain market penetration, diversification, product development and market development.
Market penetration focuses on increasing the market share of recent products which can be
achieved through devising competitive strategies of pricing, sales promotion and advertising
along with resources that are dedicated to the personal selling. According to the perspective of
McDonald and McDonald (2016, p.965), other objectives of market penetration are securing
dominance of growth markets as well as increasing usage by the existing customers introducing
brand loyalty schemes. Market development on the other hand, is based on few ways such as
new and extended geographical markets, new channels of distribution and several policies for
attracting distinct customers and creating segments of new market. In the views of Vignali (2014,
p.80), product development is based on focusing on innovation and research & development and
gaining detailed insights into the needs of customers. It is the growth strategy to be followed up
by any company for introducing new products into the market.
Figure 2: Ansoff matrix
(Sources: Hussain et al. 2014, p.75)
As asserted by Hussain et al. (2014, p.75), diversification is considered to be an inherent risk
strategy of growth where the business markets innovative and new products within the new
markets. This is because the business moves into the markets where it has no or little experience.
Getting clear idea about the Ansoff matrix, it could be stated that Adidas could be put in all the
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three quadrants except diversification since it does not follow such strategy. Therefore, the media
management of Adidas focuses on market penetration, market development and product
development. All these strategies are vital for Adidas to achieve growth and peak of success.
BCG matrix
As per the discussions of Zeschky et al. (2014, p.25), the BCG growth matrix is to be regarded as
a planning portfolio model that is developed by Bruce Henderson in the year of 1970. It depends
upon the observation of any particular company’s business unit which can be classified or
categorised into four prime sectors- stars, question marks, cash cows and dogs. The framework
of BCG matrix assumes necessary conditions that increase in the relative share of market would
effectively result in sustainable increase in the cash generation of the company. In the notions of
Craciun and Barbu (2014, p.69), further assumptions include that a growing market is under need
of assets investment for increasing capacity and hence results in cash consumption. This implies
that the business position on this growth-share matrix offers an indication of cash generation as
well as cash consumption.
Figure 3: BCG growth-share matrix
(Source: Shoham and Paun, 2015, p.555)
Dogs reveal low market share and relatively lower growth of market and hence neither generate
nor consume cash in a large amount. Question mark, on the other hand, depicts rapid growth in
the market share by consuming cash in large amounts. However, due to their low market share
they are not observed to generate cash in a lump sum amount. According to the views of Shoham
and Paun (2015, p.555), a question mark potentially gains market share and tends to become a
star and apparently becomes a cash cow at the time of slowing down of the market. Uncertainty
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of question mark for becoming a leader potentially raises the probabilities of degenerating cas
and become a dog in the market.
Stars comparatively are the best market position of any company, an organisation would want to
achieve. As per the ideas of Zeschky et al. (2014, p.26), it includes generating huge amounts of
cash due to strong market share and consumes cash in bulk amount due to their high growth rate.
Maintenance of market share within the market is probably necessary condition of being a star in
the market but it can reach the stage of cash cow with the declination of the market.
Cash cows being the last to elaborate imply the fact that being a cash cow exhibits necessary
returns over the assets which are greater than growth rate of the market and thereby generate
more cash as compared to their cash consumption. Each of the sectors signifies distinct features
and characteristics and based on these features, it could be stated that Adidas belong to the sector
of stars since; it has high growth rate and high market share. Adidas relatively contains higher
market share and penetrates higher growth in the market which is therefore making the company
outreaching and outsourcing its services.
Findings
From the above report of Adidas it is evident that the use of the smooth operation in the
organization has been in its height with all the clear management of the organisational report and
management skill. Adidas have managed to maintain the success of the organization in the
society with the satisfaction level of the customers and the managers of the organization. In the
above report of Adidas it has been clear that the organization have developed all the changes in
the organization with efficiency. The efficiency of the organization has mentioned top notched in
the organization. It is evident that observation of the management of the Adidas has greater
viewpoint and long term decision. The director of the organisation have smoothly developed the
organization and managed the amendments in the organisation for the smooth development of
the society and the satisfaction level of the organization. It can be said that the use of the
managerial support of Adidas have managed to get in the better of the customer satisfaction. The
lack of loopholes in the organisation management has managed to make the organisation one f
the best sport brand of the world.
Conclusion and recommendation
From the above report it can be evidently supported that the use of the managerial skill and better
management of the customers of the society have been evidently projected by the Adidas. The
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Adidas have managed the managerial skill in the smoothest manner possible. From the above
report it can be concluded that the Adidas have managed to maintain Market penetration, market
development and product development for the altogether support of the organisation.
Adidas is in the 61st position among the most liked brand in the world. On the other hand, the
Adidas is in the 2nd place in being the best work of the organisation. In being the best form of
the sport industry the organisation need to be clearer of the customer satisfaction level and their
change in the taste and the preferences of the organisation. The support of the company on the
better operation of the customers taste needs to be developed by the organization for further
improvement. The Adidas needs to be clear about the changes in the competitive market which
would help in the better development of the organization.
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