Overview of Analysis Adidas-Solomon AG, a ninety year old apparel and footwear company that has grown to become a multinational conglomerate. Adidas, the conglomerate, produces products sports equipment, clothing and apparel to the retail market via wholesale distributors as well to the professional athlete and also sports associations and international Olympic teams.Adidas has grown, by way of development or aquistion, to provide these consumers with such products as golf equipment, soccer balls, basketballs, boxing boots, track shoes, golf shoes, golf clubs and equipment {to name an abbreviated assortment} of products offered by the company. Adidas seeks to become the leader in providing the sports industry with its brand infiltration in the market and attracting consumers with sports brands built on a love for sports and sporting activity. Adidas’s North America target market is that of the urban youth with the company’s brand assortment and brand penetration.

As with many like organizations and competitors; Adidas also targets an urban market that is centered close to major metropolis and suburbia. [market position to be discussed later in this analysis] Adidas is positioning itself to compete in the North American market as the company is continually evolving and has a clear cut market strategy that it plans to play out as it proceeds towards its centurion mark and into the 21st century. The analysis herein will offer reasoning for Adidas’s overall position and an evaluation of Adidas-Solomon AG’s systems and tactics.From this source, we will enable observers to conceptualize Adidas’s ability to compete as a diversified company worldwide.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Background In 1920, Adi Dassler, an avid participant in multiple sports, produced a canvas training shoe for runners according to the following principles: •Produce the best shoe for the requirements of the sport •Protect the athlete from injury •Make the product durable Dassler’s company that he eventually branded “Adidas,” built a legacy of operating on the cutting edge of sports technology, beginning in 1925 with studded and spiked special shoes for soccer and track and field.His company’s different offerings for specific distances, and use of state-of-the-art materials to achieve weight savings, attracted elite athletes. Jesse Owens was among the first, setting new bests in almost all of the twelve events he entered in the historic 1936 Berlin Olympic Games and winning four gold medals wearing Adidas shoes. Adidas continued to thrive through post-War material shortages, employing canvas and rubber from American fuel tanks to produce shoes in 1946.The “Samba” all-round soccer shoe launched in 1950 is still regarded by most as the classic all-round training shoe and by the 1952 Helsinki Olympics, Adidas was the most widely work German sports shoe worn in the games. Adidas played a pivotal role in what Germans historians call the “Miracle of Bern,” the 1954 World Cup Games. Germany, still reeling from the cruxhng WWII defeat, faced the undefeated Hungarians in the finals.

On the strength of his friendship with Dassler, the German coach agreed to outfit the team in a lighter, revolutionary boot.The Germans exploited the lighter boot and longer screw-in spikes to defeat the Hungarians to take the title. The company subsequently expanded its portfolio with the 1966 Santiago soccer ball, used as the World Cup backup ball and the eventual introduction of the official 1979 World Cup: ball. Identification of Strategy for Adidas Through Adidas mission statement which dictates the direction for the Adidas’s strategy; Adidas’s missions statement sets the trajectory for Adidas to compete towards becoming the leading sports brand in the world.Based on data to be included herein, Adidas clearly has enacted this strategy in its North American market. With this being determined, Adidas is clearly defined as an organization that incorporates a broad differentiation strategic plan. However, by the very nature of this sports company conducting business as a diversified multinational organization, Adidas also implements a segmented strategy plan depending on the various markets. What is broad about the Adidas strategy is the company’s intent to differentiate it products worldwide with premium quantity materials and with the exertion of controls of retail outlets.

These was demonstrated recently as the company has started an internal evaluation to decide whether to pull products from Footlocker outlets, which is known for its discount marketing. What is also part of a broad differentiation strategy is Adidas’s record for producing innovative products with advanced technology. While the company operates in and markets its products worldwide; the company must implement a different approach as it enters and penetrates Asian markets 2nd and 3rd tiers cities.While Adidas would not be expected to compromise on quality; inventory controls are required as Asian markets still maintains a volatility curve. This despite China being the companies second highest market behind America.

While the company has experience growth and has reason for optimism after its support of the 2008 Beijing Olympics and the expectations of a more sophisticated market; some Asian markets suffer with slow unpredicted growth. This will implore a segmented differentiation market strategy.According to the text’s definition, Adidas was founded on a classic “focused strategy, ”The author’s description notes that this strategy: *Concentrating on a narrow buyer segment and out competing *Rivals by offering niche members customized attribute that *Must meet their tastes and requirements better than the rival’s products. However, it should be noted that over the past ninety years of growth and development and with the addition of products and various markets penetration; Adidas has had to adjust and shift its focus as it grew and sought to penetrate in competitive markets i. e.American and North America markets. This refocus of market strategy evolves as well as broadens marketing strategy and facilitates penetration into new markets. Note Below: A Mapping and Modeling, process can help organizations as Adidas with the ability to quickly identify and execute a highly targeted marketing campaign without knowing anything about modeling or analytics.

A scored (ranked) list of prospects that resembles the best customers; The list below can be readily utilized in a marketing campaign. What is an effective market reach – local, regional, national, international?Clearly see where the customers are located, Identify clusters of the customers in certain neighborhoods or regions Identify “pockets” of geography where the company has very little or no penetration, Decide if the organization should reorganize the sales force or the locations to better serve customers or expand the business. Gain Insights on the Customer Uncover hidden insights of you current customers, Create of list of Look-A-Likes or “Clones” of your best Customers, Quickly execute highly targeted campaigns with an improved ROI. Improved targetingIncreased conversions Best Customer – increase customer lifetime value by identifying who is the best customer and who has the most upside. Customer Cloning – identify the traits of your top customers and find prospects that resemble them. Lost Customers – regain customers whose patronage has dropped dramatically or totally lapsed Analysis of Adidas Performance Strengths: Factors contributing to Adidas early success included the essence of a target market niche which was large enough to be profitable and that offered good growth potential.Although the pool of elite runners may have been limited, the company had very little competition and outfitted the majority of college level teams.

Withstanding that there were other shoe manufacturers, Adidas opened a tremendous technological gap. Therefore, competitors found it too expensive and/or difficult to develop capabilities to meet the specialized needs of buyers comprising the market niche. Adidas incorporated “podiatric mechanical thought” into shoe design, recognizing that, in the words of Stephen M.Probut’s online article, foot and lower extremity biomechanics plays a vital role in the performance of both the casual athlete as well as the world-class athlete. In the early years, Adidas benefitted from what the text identifies as a “reservoir of customer goodwill and loyalty accumulated from catering to the special needs of niche members. Finally, the niche was so small that few rivals attempted to specialize in serving the same target segment.

The increase in popularity of recreational running sent scores of new patients to podiatrists and orthopedists complaining of foot, ankle and knee injuries.As one author notes “the casual athlete with poor biomechanical structure needs even more assistance from his or her shoes than does the professional athlete. ” Prominent running Dr. George Sheehan proposed preventing “runner’s knee” through limiting excessive foot phonation. The publication of his and other popular books by prominent physicians lowered barriers to the influence of podiatric sports medicine in both the treatment of sports injuries and the development of athletic shoe technology in the 1970’s.

More sophisticated knowledge of biomechanical knowledge of foot and leg interactions gained huge momentum in the podiatric medical profession, resulting in the widespread use of corrective devices in shoes. Physicians added devices such as wedges, arch supports, heel cradles and cushioning devices to their patients’ shoes as both palliative and preventive measures. The subsequent incorporation of such devices into athletic shoes redefined the standards within the industry. In summary, Adidas, because of recent acquisitions of other brands, e.

g.Reeboks, Tailor-made affords the company a diversification in its product portfolio as well as a wider international presence and thus and expanded market share. Weaknesses: Shifts and swings in consumer tastes and trends oftentimes subjects the sports and or the appeal producer to the mercy of meeting at the consumers demand.

If the producer is not ahead of ht game in terms of research and development as it pertains to a sudden demand for a product, thus result in a lag time in getting the product into the hands of the consumer. Thus was the case (as oted above) in th 1960’s and 70’s when consumers began to become more heath conscious and began running as an outdoors activity. Adidas as well as like companies were more concentrated in meeting the demands of the athlete and appealing to style buyers. Suddenly there was an increased popularity of the running shoe and the subsequent increase in the population of runners presented a significant fragility to Adidas AG. More established footwear companies like the small Brooks Sport inc. (shoe company) were providing for this niche market.

Generally for tability Brooks and Asics brands rank at the top of the chart on a consistent bases. While such brands as Nike, Reebok and Adidas rank well for cushion; Adidas is still playing catch up in the running shoe marker. While growth and aquistion has put Adidas in a positioned to compete, growth also carries a caveat. There can aloe be growing pains.

In addition to slow growth in world markets Reebok growth in the North American market has be stagnant as well. Based a 2007 report: Reebok overview reported that Reebok had Reeboks annual revenue $3. 8 billion


I'm Erica!

Would you like to get a custom essay? How about receiving a customized one?

Check it out