Adidas stands out in the sports industry as a producer of innovative brands of footwear, apparels, and different games equipment. The company has participated in various activities to promote its brand image in the international platform ranging from providing outfits for the 1954 German World Cup Champions and manufacturing famous sneakers worn by pop culture superstars. With the passion of providing athletes with the best clothing to withstand the pressure of workouts and physical activity, the brands have managed to navigate consistently through the sportswear industry. Adidas brands have competed favorably with those of other firms such as Nike. Its founding principles including making the best shoe possible for the particular sporting activity, providing the athletes with any forms of injury, and making sustainable products have been central to Adidas prosperity (Runau, 2009).
With the changing customer tastes and preferences, globalization, and entrant competitors, Adidas has been compelled to employ different strategies to increase its profitability from the various brand offerings while remaining highly competitive (Kracklauer, Mills, & Seifert, 2004). The forces of liberalization of trade and heightened competitions from rivals such as Nike implies has forced Adidas to modify its marketing strategy to attain global competence and potential of outcompeting Nike as a market leader. Adidas understands that in strategic business operations, the operations of the greatest rival has to be considered adequately in the firm's choices.
A brand analysis of Adidas shows that it specializes in the production of different products including sporting clothes, shoes, and bags. The multi-brand approach involving aggressive innovation of every commodity offered in the market is significant for Adidas to withstand the changes in specific product demands and improve its resilience (Schwartz & Ozanian, 2007). Emerging trends in the business environment such as globalization increase the potential of Adidas competitors to enter its traditional European market thus threatening its grip on the market. Today. Adidas has expanded its global coverage through strategic partnerships and product innovations. This approach helps Adidas to go beyond its European market and leverage on the strength of its closest rival Nike that obtains more than 50% of its sales from markets outside its traditional US market. Adidas must increase its sponsorship to other clubs and tournaments to respond to such developments,
As a leader in the sports industry in Europe compounded by the fact that Europe is among the best world economies, it can capitalize on this traditional market base to plan an expansion to other emerging markets of the world. As part of the strategic marketing, Adidas enters into more contracts with many sports leagues across the world for supplying different equipment to participants (Schwartz & Ozanian, 2007). These agreements are critical in leveraging the activities of companies such as Nike such as exclusive partnerships with top sports organizations in the Unites States.
Modern trends among the customers in the sportswear industry have progressively shifted towards customization of products (Moser, 2006). It implies that Adidas increase of its product diversification and redesign of operation model will profoundly improve customer loyalty. In essence, to endear itself to the different market share, increase its sales volume and overall profitability Adidas continues to embrace customization of products that meet the consumers needs.
One of the requirements for the provision of customized products is increased investment in learning the culture of the geographical regions that they enter. Nike achieves its brand advantage from opening new markets by attaining more than 36% of the US market while Adidas owns only 21% (Schoettle, 2006). Therefore, aggressive marketing and product diversification would be a primary strategy for increasing sale and market coverage. Furthermore. Adidas will have to select proactively the top sportspeople who have higher chances of sustained winning so that they progress the brand image in the market due to their sterling performance just as Nike does.
Kracklauer, A. H., Mills, D. Q., & Seifert, D. (2004). Collaborative Customer Relationship Management: Taking CRM to the Next Level. Berlin, Heidelberg: Springer Berlin Heidelberg.
Moser, K. (2006). Mass customization strategies: Development of a competence-based framework for identifying different mass customization strategies.
Runau, J. (2009). At a Glance: The Story of Adidas Group. Herzogenaurach, Germany: Adidas Group
Schoettle, A. (2006). Reebok should fit into Adidas' global plan. Indianapolis Business Journal. Retrieved October 21, 2009, from http://www.allbusiness.com/company-activitiesmanagement/company-structures-ownership/10540321-1.html
Schwartz,P.J., & Ozanian, M.K. (2007). The World's Top Sports Brands. Forbes Magazine. Retrieved October 29, 2009, from http://www.forbes.com/2007/09/26/sports-brandsteams-biz-sports_cz_mo_0927sportsbrands.html
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