Adidas Internal Analysis

Topics: Strategic management, Marketing, Adidas Pages: 10 (2515 words) Published: April 26, 2014
Table of Content

1. Introduction

Competition and competitive markets are common in every industry. Especially since Globalization is influencing our economy, companies need to stay competitive in order to survive against new rising competitors, which are basically rooted in the Middle East Asia. Analyzing own strengths and weaknesses and capturing new opportunities or avoiding threats, are one of the most important factors for reaching this goal. This paper is dealing with the German apparel “Adidas”, which is one of the world’s largest manufacturers for sportswear and sport utilities. But why are they one of the leading global players in this certain industry? There are some key factors, which influenced their worldwide success. A part of different departments, e.g. : research and development, human resources and in-and outbound logistics, which are working together in a fluent way, elements like customer relationship management and brand recognition are the main drivers for capturing new customers and the retention of regular customers. The intention of this dissertation will be, to explain Adidas’ internal strategies and the construction of their individual competitive advantage. One important basis for this competitive advantage is the “resource based view model“.The resource-based view as a basis for a competitive advantage of a firm lies primarily in the application of the bundle of valuable intangible and tangible resources at the firm's disposal. (Crook, T. R., et. al., 2008). In this scientific paper, I will conduct an internal organizational analysis of the firm. I will figure out how and why Adidas is one of the most important companies in its industry and will identify their success.

2. General Information and Organizational Structure

The Adidas AG (Adidas Group) is a German multinational corporation, which designs and produces sportswear, accessories and sport utilities. The company is based in Herzogenaurach, Bavaria, Germany. The corporation basically consists of three companies, “Adidas”, the brand itself, “Reebok sportswear” and “Tailor-made-Adidas Golf Company”. Reebok is a subsidiary of Adidas since 2005 and also a manufacturer of athletic shoes, clothing and accessories. “Tailor-made-Adidas Golf Company” designs and markets all products which are related to Golf. The Adidas group is the largest sportswear producer in Germany and Europe and the second manufacturer in the world, right behind “Nike”. The company was founded in 1924 as the “Gebrüder Dassler Schuhfabrik”, but was officially registered in 1949 by Adolf Dassler, after the split of “Gebrüder Dassler Schuhfabrik” between him and his older brother Rudolf. One of the most important competitors of Adidas was and still is, “Puma”, which was established by his brother Rudolf Dassler in 1949. The structure of the organization is very well defined. There are different functional departments such as marketing, production, R&D, customer services, operations, distribution, and human resource with clearly defined jobs at all levels. The vision of the Adidas Group is to be the leader in the sportswear industry, with sub-brands built upon a passion for sports and a sporting lifestyle. In order to achieve the goal a profound understanding of the consumer and customer is essential. To satisfy the needs of the customers it is essential to build a strong customer relationship in order to understand their buying behavior (AdidasGroup, 2013). Adidas´revenue in 2012 was listed at 14.488 billion euros and profit was listed at 1185 million euros. In 2010, Adidas worked with 1,236 independent factories, in 69 countries. 69% of these factories where located in Asia and the rest in Europe and the U.S. 27% of the Asian factories are based in China. In 2006 the sales of Adidas´ in the Asian regions and in the emerging countries (South Korea, Romania, Russia, Croatia, and Brazil etc.) increased up to 147,8%. (Annual Report 2012, 2013)...

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