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Value in Acquisitions

Adidas definitely uses acquisitions to their advantage. They are extremely strategic with every acquisition they make, ensuring that they are not only getting rid of competition but that the new acquisition will actually benefit them as well. Attached are a few links of some Adidas acquisitions over the years. https://www.adidas-group.com/en/group/history/ https://nypost.com/2017/07/20/adidas-laces-up-100m-hockey-brand-sale/ https://techcrunch.com/2015/08/05/runtastic-acquired-by-adidas-for-240m/

Strategic partnerships

Adidas has been really smart when referring to partnering with other companies and brands in order to reach as many people with their brand as possible. One of Adidas' biggest partnerships has been with FIFA. The World Cups recently reached 3.2 billion viewers which means that every last one of those people are being influenced by Adidas whether they realize it or not. Attached is a link to FIFAs extension to their contract with Adidas through the year 2030! http://www.fifa.com/worldcup/news/y=2013/m=11/news=fifa-and-adidas-extend-partnership-until-2030-2227271.html

Diversification

Adidas actively and successfully uses a multi-brand strategy. Within this particular strategy Adidas is able to take advantage of the opportunities in the industry as well as provide diverse and relevant products to an extremely wide range of customers. The strategy directly relates to diversification because all products under Adidas group's brands are related to one another which allows the sharing of different recourses as well as capabilities between the variety of brands.

Vertical Integration

Vertical integration is all about a company's strategy to create more economic value by owning its own supply chain as opposed to paying for someone else to produce the product for them. As a company produces more and more of its product from beginning to end, that company becomes more vertical.  Adidas has currently switched from its past vertical integration strategy to the outsourcing in production and manufacturing. Most products of the company such as sporting shoes, apparel, accessories and equip,eat are manufactured in the Asian countries. The reason behind outsourcing the manufacturing is the lower cost of raw goods and labor in those countries. Adidas moved production to Asia in the early 1990's to remain competitive in the industry. Although Adidas outsourced its production and manufacturing, the design and development of their products remains in Germany. 

Adidas & Product differentiation

Simply put, product differentiation is a business strategy in which a firms attempt to gain a competitive advantage by increasing the willingness of customers to pay for the products or services they have to offer. When it comes to having a competitive edge over the premier athletic wear brands, Adidas has been able to maintain one through product differentiation. Not only does Adidas offer clothes for the runner who needs new workout gear for their upcoming marathon but they also offer top of the line clothing for the fashion-forward person who wants to turn heads at the next social event they attend. One of the biggest reasons that their product differentiation is so profound is that even though their products are high quality, they actually price lower than Nike in a lot of different areas strategically. Adidas has been able to offer a unique variety of clothing for moderate prices and they continue to bring new innovative features and products to the market. Many try to duplic...

Flexibility

When reading this weeks chapter we talked flexibility more than everything else, flexibility. Adidas has been flexible in so many more ways than just one. As a company in such a competitive market, your only chance at having a career full of longevity is to be flexible.  The article below is an example of Adidas's flexibility. http://www.wired.co.uk/article/adidas-speedfactory-made-for-london-trainers If adidas was not able to get out of their traditional way of making shoes, they wouldn't have been able to create a shoe that would eventually reshape the sporting world.

Customers

Adidas has had a pretty rocky road when referring to customers. Of course Adidas has had their group of loyal supporters but the brand went through a timeframe where there was no innovation to their products. The company seemed stagnant for a while but here recently things have really turned around for them. So many customers are looking for Adidas gear, it is at an all time high in terms of demand. Not only has Adidas been able to regain their customers but they have also taken some of its top competitors (Nike). Attached is a link that displays the amazing comeback Adidas has made. The company truly came back better than ever! http://www.foxbusiness.com/markets/2017/08/30/nike-losing-core-customers-to-adidas-morgan-stanley.html