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.

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