Strategic Management Report: Adidas's Strategic Position and Analysis

This report provides a comprehensive analysis of Adidas's strategic management, examining its organizational strategies, strategic positioning, and key performance indicators (KPIs). The report delves into Adidas's global brand strategy, global sales strategy, and other business strategies, including the use of Ansoff's and BCG matrices. It also critically evaluates the organization's strategy using the SAFE framework, assessing suitability, acceptability, and feasibility. The analysis covers Adidas's market penetration, market development, product development, and diversification strategies, highlighting its approach to competition and market share. Furthermore, the report explores Adidas's group strategy and its commitment to innovation, supply chain management, and customer engagement. The conclusion provides recommendations for further improvements and future strategic directions.

Strategic management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Organisations strategic position...................................................................................................1
Organization strategies................................................................................................................3
Critical evaluation of the organisation's strategy.........................................................................5
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management considered important role in the business to create structure and
planning. It implements to develop design, objectives, goals, etc. Therefore, efficiency and
effectiveness develop in successful manner to grasp important consideration (Holtbrügge and
Schuster, 2017). In this aspect, present report based on the Adidas which is multinational
corporation and design shoes, clothing, accessories, etc. There are several competitors exist in
the market who provide same products and services with brand. For instance, Nike, Puma, etc. It
will assist to consider branding operations to attract several customers. For gaining insight
information of the company, it covers strategic position with using strategic KPI. Furthermore, it
carries discussion on SAFE framework to drawn systematic work performances.
MAIN BODY
Organisations strategic position
In order to look towards the strategic position, it is important to look upon the different
activities that helps to promote effective results by Adidas. In several areas of the world, the
company consider operations in successful manner so that they can attain significant advantages
as well. Hence, following are certain KPI that assists to make strategic position of the chosen
business: Major sporting events 2014: In 2014, Adidas considered several events in sports that
assists to develop its market and attain systematic work performance. In this way, in
January from 12 to 26 in Denmark they organise event for supplier of Balls. Therefore, it
assists to listed several aspects in the growth (Mahdi, Abbas and George, 2015).
Furthermore, there is another event consider on January 16 in London UK in which the
chosen company is official sponsor. On March 7 to 9 they considered IAAF World
Indoor Championship in Poland where Addidas develop their part as official partner. In
addition to this, they have organised Amlin challenges cup final Cardiff in UK on May
23 in which the selected enterprise considered tournament suppliers. From this date, they
consider continuously event program in Portugal as sponsor. In June, the enterprise
develop their activities and ascertained successful program as well. With FIFA, Adidas
considered operations as partner and organise event on June 12 to July 13. In September
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and December, they are also organised event on different dates with IAAF, BMW, IHF
women, etc. Group strategy: Adidas consider their group strategy as the leader in sporting goods'
industry with the brand development. It helps to build passion for the sports and sporting
the lifestyle which inspired by the heritage. In addition to this, the company considered
KPI with creating long term shareholder values which significantly operating cash to
generate effective results at workplace (Holtbrügge and Schuster, 2017). In this way,
Adidas also operating with diverse brand portfolio where they implement successful
results to look upon the possible requirements. As results, the company able to
considered multinational operations to attract several numbers of candidates in the
business. In addition to this, the chosen enterprise leading with flexible supply chain
which implement speed and agility with outpacing to the competition. They are
committed to meet with the full range of customers that ensure constant products are
available to produce effective results. Technical innovative and latest high fashion
products are also developed with the quality standards. In order to develop systematic
work performance, the company able to implement innovations so that they are
responsible to consider cultural elements with cutting edge program. Global sales strategy: In order to implement the global sales strategy which is drive on
the commercial performance of Adidas group. They building desire and meet with the
consumer needs all the time. In this way, additional consumer potential outcomes need to
implement in global state so that all commercial activities serves with different channels
such as wholesale, retail and e-commerce. This channel focused on the approach that
allow establish strong market position in the global environment. It creates cooperation
to lead with different partners. Hence, it is the biggest mono branded store chain in the
significant consideration. In this regard, wholesale strategy implemented with ascertain
objective to deliver sustainable profits and revenue to make high growth. It collaborates
with the third party retailer so that it strive on the market share and attain overall
advantages as well. This strategy considered focus on the complete selling process to
deal with the customers and consumers. Consistent global trends terms implemented to
create standardisation with brand and solution (Mahdi, Abbas and George, 2015). Along
with this, retail strategy also assist to increase future outcomes that develop brand and
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key drive with different reasons. Therefore, brand performance could be develop in
successful way. With this regard, leverage our learning considered with direct interaction
with consumers. Global brand strategy: Further, Adidas also develop their consideration with ascertain
global brand. It is responsible for the brand positioning and create innovations at
workplace. It helps to focus on the brand marketing functions which categories the
different opportunities through coordinated marketing strategies (Bartlett and Beamish,
2018). Each brand is responsible to execute the strategic focuses that constant stream
desired products and generate communication strategies as well. It drives to focus on the
long term consideration for Adidas. As results, long term sustainable growth secure in
the group to attain creativity. Global brand also focuses to drive on the development of
business to build desirable brand in consumer perception. Strategic business plan
expected to deliver more than 80% to target group. There are several areas classified that
assists to look upon the key contributors which assists to gain sales and market share as
well. Expanding fast fashion with business development included in the business
(Luthans and Doh, 2018). It is mandatory to consider different channels and markets for
brand development.
 Other business strategy: In order to focus on the systematic work performance, it has
been seen that Adidas need to adopt such other strategy. In this way, segmentation
considered which contributes in the specific market for the overall development. In this
way, as per group performance they need to focus on the initiatives and improvements in
global distribution. Therefore, the company can lead with golf most respected brands
(Rothaermel, 2015).
Organization strategies
Adidas -Salomon is the one of the major sports company and it is the second largest
sportswear manufacture in the world. It is focus on brand specialise in footwear, apparel and
accessories and quality of products. The objective of this company strategies to maintaining their
business whole world. This company follows many strategies but they mostly need to used
Ansoff's matrix. The main motive to these strategies expand its operations in order to preserve its
global competitive positions. From the market point of view , Adidas believes in development
and Performance of their business. It is related to market penetrations, market development,
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product development and diversification. Ansoff matrix is very help full it decides their product
and market growth and strategy.
Market penetrations
 it is refers to global brand visibility
competitive with over local brands
 it is innovative and it creates a very
good image of Adidas in the market
 It is used aggressive advertising
strategy to earn market share with its
existing product
Market development
 Market development is concerned with
the Adidas improve their product
quality.
 These strategies are very useful for
enter into new market (Luthans and
Doh, 2018).
 Adidas focused on to attract their target
customer through sell new product
Product development
 They identify particular group like
children, youngster, and middle class
people.
 Design a product that are affordable
and improve product quality according
to customer taste and preferences.
Diversification
 Main motive of these strategies is to
expand their business.
 These strategies is considered with the
risk if they are diversified without
knowing what types business will help
to increase their business probability.
 This strategies help to reduce the
financial risk.
 BGC matrix is totally based on market share and growth of the market and these
strategies is very important it helps to increase the profit of the Adidas company at lower
price of the product. It is based on combinations of matrix there are four part of this
model and it is based how much cash generated and consumed.
Cash cow
 Adidas consecrate on selling their
product and generate more cash for the
Question mark
 Adidas fund improve their market
share.
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company and it used for the
development of new product
 its is main financial pillars of the
company that raise their profit and
generate revenue.
 These are the product in this company
with low development or very less
market share
 Company ignore that product less
demand
 this company product growth is very
high with low market share.
Star
 it refers to the product that generate
sufficient amount of revenue for the
this organisations but at the same time
these company product need more cash
to maintain their market position
(Bartlett and Beamish, 2018).
 Adidas product high in the market with
high its market share.
Dogs
 some Adidas product which is related
with the shares in the markets and also
have very less growth rate.
 Consumer are not satisfied and less
product investment or they do not raise
their revenue
 its products in low growth in the
markets with high market share
Critical evaluation of the organisation's strategy
Around the world, there are different type of companies that deliver their customers with
similar type of products and services. It is important to make sure that use of SAF is done so that
Adidas is able to attain their set of goals. With this respect, analysis is required to be made in
which all the aspects within the business operations can be carried out in appropriate manner. In
this context, there are three of the aspects that are taken into consideration and they are as
follows:
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Suitability: This is determined to be a concern to analyse whether an issue faced can be
addressed alternatively related with strategic position. There are number of criteria on the basis
of which suitability can be used (Galvanin, Barolo and Macchietto, 2010). In this context, it
includes environmental suitability, capability suitability and expectation suitability. In
accordance with this aspect, it can be stated that Adidas is able to make use of the strategies that
are applied by them in effective manner. In order to identify the areas in which development is to
be made, it consists of making use of models like SWOT, PESTLE, etc. All these are highly
effective to know the business performance. There are companies that are deliver their customers
with similar type of products and services. In such condition, it becomes difficult to make use
these type of models so that the areas in which development is required to be made can be
identified.
Acceptability: This is considered to be the source through which measuring the return,
stakeholder reaction and risk from any particular strategy. The returns are measured with the
help of benefits that are attained by stakeholders and this can be financial or non financial. For
example, strategy is developed to provide workers with training and development. The
effectiveness of this strategy is done with the help of raise in sale and profitability. In order to
implement any type of strategy, there are risks involved (Barberá, Crespo and Stegmaier, 2012).
It is important to make sure that all these aspects are taken into proper consideration. When
measure for the success is determined, the reduction in impact of the risk is also analysed. These
are highly effective make sure that all these are considered and the set of goals are attained in
appropriate manner. When any types of strategies are develop, then these information is to be
conveyed to key stakeholders so that they are able to perform their set of roles with full
efficiency. Adidas is able to make analysis of the business by measuring the outcomes or
concerning with employees.
Feasibility: This is considered to be the make or break of any chosen strategy. When any
type of strategy that a firm is willing to implement, in this process when they get to identify any
problem, then there are changes made. This is highly important to make sure that monitoring is
done so that the strategy can be used in appropriate manner. In order to make strategies
implement, there are requirement of financial support needed. Apart from this, it is also required
to have employees who have appropriate skills so that they are able to determine the ways that
can make the strategy to focus effectively and efficiently (Tanaka, Majima and Kawabata, 2015).
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When talking about Adidas, it can be stated that they get help from employees as they are the
one who perform all the activities or strategies. This way, information provided by them is
effective enough to use so that the rate of support can be raised in positive manner.
CONCLUSION
In accordance with the findings, it is identified that there are different type of issues
identified. It is required to make sure that management has strong interaction so that they are
able to determine the problems faced and steps are taken to overcome them. In condition when
employees fail to perform with their full efficiency, then it has negative impact over the business.
Further, to perform any of type of tasks in appropriate manner, it is required to have willingness
and interest for the same. Strong or healthy interaction is required to be made so that
management is able to determine the issues faced by employees and appropriate steps should be
taken to overcome them.
RECOMMENDATIONS
There are different types of recommendations that are needed to be considered by Adidas.
When these are considered, then it will be suitable enough to make the firm attain their set of
goals in effective manner. With this respect, below given are the recommendations:
Monitoring: Employees are the face of organization as they have direct interaction with
customers. They are the one who present the products and services. When the type of roles
played by them is not effective enough, then it can causes serious issues. In order to overcome
these type of condition, it is required to monitor the performance of employees. When this is
done, then it becomes favourable enough to determine the areas in which improvement is to be
made.
Use of technology: With time, there are many changes that take place and it is important
for the firm to make use of new or updated technology so that they are able to deliver customers
with high quality services. Further, it can also be stated that proper management of cost should
be done so that use of technology can be done in effective manner.
Research: There are frequent changes identified in taste and preferences of customers. It
is important to make sure that all the set of requirements that individuals have are analysed and
set are taken to fulfil them. With the help of research, the preferences of people can be identified
and accordingly satisfaction can be met. In addition to this, the areas in which cited firm is
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required to be make improvement can also be identified and this way all the problems that are
faced by them can be considered and problems can be solved.
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Bartlett, C.A. and Beamish, P.W., 2018. Transnational management. Cambridge University
Press.
Galvanin, F., Barolo, M. and Macchietto, S., 2010. A backoff strategy for model‐based
experiment design under parametric uncertainty. AIChE journal, 56(8), pp.2088-2102.
Holtbrügge, D. and Schuster, T., 2017. The Internationalization Strategy of Adidas. The
Internationalization of Firms: Case Studies from the Nürnberg Metropolitan Region,
p.19.
Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior.
McGraw-Hill.
Mahdi, H.A.A., Abbas, M 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.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Tanaka, F., Majima, S. and Kawabata, N., 2015. Performance validation of a hybrid ventilation
strategy comprising longitudinal and point ventilation by a fire experiment using a
model-scale tunnel. Fire Safety Journal, 71, pp.287-298.
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