Adidas, la startégie de management (document en anglais).

INTRODUCTON

Adidas is a German company designing sportswear goods. With a large portfolio gathering Adidas, Adidas ORIGINALS, Porsche Design , SLVR, Stella McCartney for ADIDAS, and Salomon, ADIDAS has built itself as one of the major and most famous brands worldwide. Today, the company is going good being second in its market behind Nike. The company acquires its well-known reputation thanks to the first running shoes with spikes which increase the speed of runners and other sports related athletes.

The company will build its reputation and its originality by the sponsoring contracts established through its history. In the 1996, Adidas started an athlete’s sponsoring policy focusing on celebrity such as Beckham or Andy Murray. This innovative strategy was a clear success for the company worldwide brand image. After a successful journey on the sports side, Adidas chose brand new strategy and focus on the inspiring trend of vintage clothes by the creating Adidas Vintage.

First we will analyse the current strategy of Adidas and then look at the internal and external environment. Finally we will define the different strategic issues that Adidas is currently facing to conclude on some recommendation.

CURRENT STRATEGY

The Adidas overall strategy can be split into three main important separated period of time, into which the main strategy applied was quite different :

Innovation: Since its beginning in 1920, Adidas decided to focus on innovation, especially in athletic footwear. Strong patents strategy (700 patents filed in 1978). The company strategy went forward a diversification of products, by proposing a larger choice than its competitors. Adidas understood the importance of sponsoring for promoting (Through for instance, the Olympics games)

Diversification through acquisition: Adidas compete to Nike market’s share growth by implementing a new strategy choosing to differentiate itself by purchasing others brands and entering new markets (Salomon SA purchase, 1998. Reebok purchase, 2005)

After 2006: capitalization on brand knowledge. Adidas reorganized the company into business unites based on the company’s core brands and focus on innovation and sponsoring.

ENVIRONEMENTAL ANALYSIS

 PESTEL

Political Economical

- Government initiatives to promote sport activities in general ( national sports event; continental sports event, Olympic games ) - Emerging countries. Purchasing power of the middle class especially in Asia and Latin America

- Tough competition ( Nike )

- Economic Downturn

- Price fluctuation of raw material prices and labour costs

Social Technology

- Rising awareness for healthy lifestyle and environment needs.

- Large amount of young customers

- Concerns related to sourcing practices - Innovative technologies in footwear and apparel

- Promotion over internet

Ecology Legal

- Weather condition affects demand

- Non forgery legislation

- Law regulations regarding products

 PORTER 5 FORCES

Threat of new entrants: Medium

The two main companies control partially the barriers of entry thanks to their competitive advantage; they managed through their suppliers influence in third world countries to implement a strong regulation upon their suppliers, in regards of the amount of their purchases there. The strongest natural barrier to entry in this market is relative to the investment for the website and online shop.

Bargaining power of buyers: Medium

In this market the overall amount of demand clearly overpass the offer provided by companies. Nevertheless, customers have the choice between several other brands in regards of their sports related clothes’ purchases.

Bargaining power of

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