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...

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.

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

Cost Leadership is one of the constant topics brought up in Chapter 6. Cost leadership can be defined as "a firm that chooses a cost leadership business strategy focuses on gaining advantages by reducing its economic costs below all of its competitors." Adidas has been able to master this concept by providing its consumers with affordable yet fashionable apparel. Adidas is able to be so competitive in this manner because they have an extremely productive and efficient supply chain. Their profit comes from the volume of sales being so high resulting in a large profit in the scheme of things. Another way that Adidas is able to stay ahead of the game is that they have not only been able to provide moderately priced wear but they also provide clothing and shoes which happen to be pretty expensive, somewhat leveling the playing field. Adidas' biggest competitor has always been Nike and this link shows you their strategy for keeping an edge over them in every way possibl...

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 ...