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FUNDAMENTALS OF MANAGEMENT ASSIGNMENT-2 Strategic planning processADIDAS-ALL DAY I DREAM ABOUT SHOES Inputs:People: Adidas claim that their people are crucial to his success. Achieving there goal tobe the global leader in sporting industry wholly depends on the talents and engagement of theiremployees. They reward the staffs for their achievements. As employers they take responsibility toensure health and safety to his people. They also look after their employees by promoting globalmobility, helping staff achieve a healthy work-life balance, and offering access to a wide range ofcompany sports activities.Capital: The company revenue for 2009 was listed at 10.38 billion and for 2008 figure at €10.80billion. As a Group, ADIDAS target leading market positions in all markets where they compete.With almost 180 subsidiaries worldwide, they have prioritised investments based on thosemarkets which offer the best medium- to long-term growth and profitability opportunities.Goals: Adidas vision is to enhance social and environmental performance in the company and thesupply chain, thereby improving the lives of the people making their products. It strives to be theglobal leader in the sporting goods industry . Company profile:Purpose: ADIDAS is a major german based sports apparel manufacturer and parent company of theAdidas Group, which consists of the reebox sportswear company taylor- made adidas golfcompany, and rockport. Besides sports footwear, the company also produces other products such
as bags, shirts, watches, eyewear and other sports and clothing related goods. The company is thelargest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in theworld .For over 80 years the adidas Group has been part of the world of sports offering sportsfootwear, apparel and accessories. Today, the adidas Group is a global leader in the sporting goodsindustry and offers a broad category of products. Objectives: The key objectives were to reinforce adidas position as an innovator and technologicallystrong marketer world wide. They utilized the 3G phone to connect with the football-madpopulous. Orientation of top managers:Values: The adidas group were: Consumer focused Innovative and are design leaders Global organization Committed to continous strenghting of brands and products Dedicated to consitently delivering financial results.Attitudes: Consumers needs choice. Whether it is the athlete or the casual consumer searching for thenext fashion trend,adidas is focussing to develop and create experiences that engage consumers inlong-lasting relationships with their brands.Preference: Speed is the key to overcome competition. They are committed to meet the full range ofcustomer and consumer needs which is most prefered, by ensuring product availability in thecorrect size and colour, providing technical innovations ,latest fashion product to the highestquality standards.Direction of the company: Adidas is directed towards continuously strengthening thier brands and products to improvethe competitive position and financial performance.To become the global market leader insporting good industry is thier objective.
Alternative strategies: Adidas mission is to be the leading sports brand in the world, to achieve this, the brand’sunique product has to expanded to premium fashions from professional athletes. It allows adidas toexploit market opportunities,satisfy multiple consumer needs from various angles.It also reducesrisks from one sector. Evaluation choice of strategies: In 2009, the adidas Group identified their alternatives and took the strategic decision tomove from a single brand structure to a functional multi-brand structure for adidas and Reebokbrands. This led to the creation of a Global Sales and increased the global image which helpedthem acheive their goal to become the global market leader. Medium & short range planning: Adidas aims at achieving the market leader position globally. It indulges into number ofactivities to promote its brand value. They develop strategies to achieve their short term objectiveof competing their rivals and long term goal of being the global market leader. Adidascommitment to innovation differentiate it from its competitors.
SWOT & TOWS ANALYSIS OF ADIDASSWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,Opportunities, and Threats inside a company. It identifies the internal and external factorsthat are favorable or unfavorable for business. SWOT ANALYSIS OF ADIDAS Strengths Weakness•Good financial position • High cost structure•Effective Marketing Strategy • Over pricing•Market Leadership • Low quality products/services•Strong online presence • Limited product line•Strong brand Online customer service not helpful•Strong international operations•Strong distribution chain • Competitive pricing Opportunities Threats cut throat competition from rival apparel•Change in consumer lifestyles brand•Available technological innovations demand forecast for hot market item•Entering new markets •Competition from foreign markets•Expand customer base •Competitors actions•Expand product/service lines •Change in consumer lifestylespatterns•Market Diversification •Growing power of customers to set the price•Merger or ACQUISITION •Growing power of suppliers to set the price •Financial slowdown •Increase in taxation •New competitors entering the market •Price war between competitors
External opportunities External ThreatTOWS Bring in innovative products Meet competition with advancedInternal Expand distribution line technologyStrength Being the market leader it can get Establishing strong brand image to into Merger or acquisition. avoid cut throat competition Expand with the change in growth of customers • Develop products with different price • Reduce competition by developingInternal levels flexible product lineweakness • Build strong online service • Fluctuation in price and hire pricing can be avoided • Quality products equal to competitors can be manufactured TOWS ANALYSIS OF ADIDAS MY opinion: I agree with their strategy, that sales will increase by sponsoring to the world cup Football being the most popular sport across the world is the prime focus for Adidas. To surge a sales the strategy of adidas to endorse 12 national football teams will generate the revenues.