March 29, 2012
Adidas Case Analysis
Adidas went through a stage of restructuring when the company’s corporate strategy needed to be revamped. Before 2009, adidas focused on making acquisitions that would ultimately lead to overtaking Nike as the leader of the global sporting goods industry. In 2009, adidas restructured the corporate strategy to extend its leadership in product innovation, creating a differentiated image for the products offered by each its three business segments (adidas, Reebok, and TaylorMade-adidas Golf). Adidas would also center their attention to achieving efficiencies in its global supply chain processes and activities.
In order to maximize the outcome of adidas’ new strategy, each business unit was expected to develop at least one major product innovation every year in each product category. This would help adidas build differentiation within all of the products. To further differentiate adidas, Reebok, and TaylorMade, the company began to focus on brand building by creating partnerships with sporting events around the world and prominent athletes.
Internal Environmental Analysis
Adidas’ internal environment was strong and helped keep the company competitive and profitable. The Reebok and adidas brand together held 8.52 percent of the market share for leading sellers of athletic footwear in 2008. Even though the company’s’ market share had dropped over the previous years, the net sales had been rising since 1998. A SWOT analysis was taken of adidas and it shows that adidas has a strong internal environment that can grow stronger over time if they capitalize on the opportunities offered and manage the threats.
Adidas’ strengths consisted of worldwide presence, a differentiated product line, a focus on performance technology and technology development, sponsorship to various sports and events, brand reputation in achieving sports performance products....