IBS210: Adidas International Business Strategy and Growth Analysis

This report examines the challenges facing Adidas in the international business environment, particularly focusing on the impact of increased competition, especially from Nike, on sales and market share. The analysis highlights ineffective advertising and promotional strategies as key issues. The report recommends a pull strategy for marketing communication, emphasizing standard advertising and localized campaigns to address cultural and legal nuances in different markets. It aims to provide insights into how Adidas can improve its competitive position and achieve sustainable growth by adapting its marketing approach to better engage with diverse consumer bases. The report uses references to support the analysis.

INTERNATIONAL BUSINESS:
STRATEGY DEVELOPMENT
STUDENT NAME:

IDENTIFICATION OF ISSUES THAT MAY
IMAPCT FUTURE GROWTH OF ADIDAS
 In recent times the business environment of Adidas is in trouble. Adidas is the largest
sports shoes manufacturer in Europe and is second-largest in the world after Nike.
 Increased global competition has caused its business difficulties to be more prominent in
recent times. Considering the North American business areas, sales have been falling
sharply for the last three years and as a result shares have also fallen drastically (Mahdi
et al. 2015).
 In regard to international business scenario in Adidas, the issue of robust advertising and
promotion by its competitor, Nike is considered.

ADVERTISING ISSUE AND STRATEGY
DEVELOPMENT
 International business marketing is based on four main pillars namely communication
strategy, pricing strategy, segmentation and product attributes (Fill and Turnbull 2016).
 In this regard the communication channel strategy support will be considered for
Adidas to support its long-term market sustainability.
 Nike is far ahead in its promotional campaigns than Adidas. Adidas lost its major
endorsement deals to Nike (Mahdi et al. 2015).
 The ineffective communication advertisement and promotion has caused Adidas lose
its market share considerably and its close competitor Nike is having the competitive
gain in a more comprehensive manner.

RECOMMENDED STRATEGIES
 Adidas should adopt pull strategy of marketing communication mix (Naeem, Bilal and
Naz 2013).
 Standard advertising will be more advantageous in gaining maximum economic
benefits.
 Adidas should focus on the cultural and legal environment of the nation and should
localize some of its advertising campaigns to be more people-based (Fill and Turnbull
2016).

REFERENCES
 Fill, C., and Turnbull, S. L. 2016. Marketing communications: brands, experiences and
participation. 6th ed. Pearson: London.
 Mahdi, A., Abbas, M., Mazar, T.I. and George, S.A., 2015. A Comparative Analysis of
Strategies and Business Models of Nike, Inc. and Adidas Group with special reference
to Competitive Advantage in the context of a Dynamic and Competitive
Environment. International Journal of Business Management and Economic
Research, 6(3), pp.167-177.
 Naeem, B., Bilal, M. and Naz, U., 2013. Integrated marketing communication: a review
paper. Interdisciplinary journal of contemporary research in business, 5(5), pp.124-133.