Week 2 Competitive Advantage

Every company looks for ways to separate themselves from the pack, something that makes them unique. The special thing that all businesses and brands are looking for is called a competitive advantage. A competitive advantage can be described as a condition or circumstance that puts a company in a favorable or superior business position. When you're a company like Adidas, how can you get an advantage over your competitor which happens to be one of the most well known brands in the world? What can Adidas do to thrive despite the large fanbase that their top competitor has? What can make them special when their competitor has literally done everything in the book? The answer is simple, they have partnered with influential people and businesses. 

Adidas has been seen partnering with organizations such as FIFA, UEFA, NBA, Cricket and Olympics and what made them standout is the fact that they have always provided great quality products to these companies which end up being the best promotion one could ask for because word of mouth travels faster and more effectively than any ad ever could. Adidas doesn't target one region in particular, they are world wide. When the World Cup is being played, their brand is being printed on the mind of fans daily. The article below explains the importance of the partnership approach Adidas has decided to take. 

Comments

Post a Comment

Popular posts from this blog

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...
Read more

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. 
Read more

VRIO

When researching VRIO there are 4 different questions that one must ask about a resource or capability to determine its competitive potential. Based off the answers to the following questions, you’ll realize whether or not your company has a competitive advantage or is just simply keeping their heads above water. 1. The question of value: does a resource provided allow Adidas to exploit an environmental opportunity? Yes, Adidas has more value now than ever as they are reaching out to multiple demographics of people and thriving within each area. 2. The question of rarity: is the resource provided by adidas controlled by only a small number of competing firms? Although most Adidas products are high in supply, there are a few products that they offer that allows the company to keep its exclusivity. Having limited supply of certain shoes also makes their demand go up. 3. The question of imitability: do other companies without a resource face a cost disadvantage in obtaining or ...
Read more