Market study - International competitiveness: Adidas

Thèmes abordés

Adidas, Reebok, TaylorMade-Adidas Golf, nike, market study, international competitiveness, sporting goods industry, sporting lifestyle, sports, Porter, SWOT, global strategy

Résumé du document

"Adidas: the no. 2 in the global sportswear market is challenging the no. 1, Nike."
(Anon., 2014) Adidas's main goal each year is to reach the first place in the sportswear industry, for this reason it is adapting different strategies and market expansions in order to be more competitive against its biggest rival; Nike. The company develops its products through three main brand: Adidas, Reebok and TaylorMade-Adidas Golf. Adidas is way behind Nike in terms of revenue but talking about geographical distribution, it dominates in western Europe and is the number one in India. Both brands are also battling with their own social media strategies, specifically in the global apparel market which competitive environment has become intense. Each country has different situations and trends which are impacting Adidas as opportunities or threats.

Extraits

[...] Social Progress Imperative See the world differently. [Online] Available at: http://www.socialprogressimperative.org/ [Accessed 8 November 2016]. The World Bank October 2016. Gross Domestic Product 2015, s.l.: The World Bank. World Economic Forum Competitiveness Rankings. [Online] Available at: http://reports.weforum.org/global-competitiveness-report2015-2016/competitiveness-rankings/ [Accessed 8 November 2016]. [...]

[...] The use of Social media and web selling platform helps to supporting brand development but once again, Nike dispose of the same strategy. Yet Adidas was the first web selling platform in Latin America and it helped them to take the leadership in this market. Based on the main countries where Adidas dispose of a leadership (Russia, Latin America, Australia) the company can focus its efforts on a market in development (e.g.: the BRICS market). The Brazilian market is opened thanks to the Latin American market. [...]

[...] Furthermore, Nike's cost policy and marketing helps to increase its market shares in every country where they have been established. Good competitive strategy thanks to specialized brands (like Reebok upon the American market or the Adidas golf brands) supported by 170 subsidiaries (also specifics for their markets). Adidas is well established on markets where Nike can't take the leadership yet (Latin America, Russian, Australian). However, there are some markets where Adidas and Nike arrived at the same time (e.g.: China) which are slowly acquired by Nike (proof of the efficiency of Nike system) Reduction cost policy based on outsourcing the production which creates a lost of control over quality and costs for the production (about 95% of the production is in foreign countries). [...]

[...] Thus, Adidas produces the strip for the Real Madrid football team, while Nike competes with FC Barcelona. Adidas dominates principally in Western Europe and India, but they will focus on attacking United States, China and Russia, which are the regions where Nike has the lead. Adidas and Nike´s main strategy is to develop global awareness by using brand as a their main tool, which obviously increases global competitiveness among them What should Adidas do to become in the global sportswear industry? In order to become the market leader, Adidas needs to re-evaluate its marketing mix, merchandising and focus on empowering the perceived value that the customers have about the brand. These can be achieved by attacking new markets, strategic partnerships with well-known brands, alliances and sponsors with different sports, not only football clubs. References Adidas Group Company Mission Report, Herzogenaurach: Adidas AG. Anon Adidas: the in the global sportswear market is challenging the Nike., s.l.: s.n. [...]

[...] To look forward to always been innovative and design leaders who “seek to help athletes of all skill levels achieve peak performance with every product we bring to market” 2013). They are consumer-focused and therefore they are continuously improving the “quality, look, feel and image of their products and the organizational structures to match and exceed consumer expectations and to provide them with the highest value” 2013). They are a Global organization that is socially and environmentally responsible that “embraces creativity and diversity and is financially rewarding their employees and shareholders” 2013). They are dedicated to always deliver outstanding financial results. [...]