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    • Designing Employee Compensation strategy & Effective Pay for Performance co
    • LEMON TREE HOTELS: OPENING DOORS FOR EVERYONE case study solutions 1. Ident
    • AIMA PGDM GMO4 Managerial Economics Assignment
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    • EBI Project report and review on - To identify issues being faced by studen
    • ALPHABET’S GOOGLE Case study analysis and solution - Five Force Analysis of
    • AMAZON AS AN EMPLOYER SHRM case study solution- an article published in The
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    • The Supply Chain Game "Beer Game" questions and their solutions
    • Adidas Seven step scenario planning method, Evaluation of future strategic
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      • Increasing Demand of Home Tutors & Home tuitions in Noida
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      • Choosing the Best Coaching for Class 11 and 12 Accounts and Economics in No
      • The Benefits of Home Tuition for Accounts and Economics in Class 11 and 12
      • Benefits of Hiring a Home Tutor for Class 11 and 12 Accounts and Economics
      • Best Home Tutors & Project Report & Assignment solutions provider for Amity
      • RBL Academy - The Best Choice for Accounts and Economics Coaching in Noida
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      • How RBL Academy can provide MBA and BBA Project Report and Assignment Solut
      • Exploring the Benefits of Summer Internship MBA/BBA Projects and Home Tutor
      • Maximizing Your Summer Break: How to Make the Most of Summer Internship MBA
      • Unlocking Success: A Guide to Online Tutoring in Management Accounting, Inv
      • Unleashing the Power of Online Tutoring: A Guide to Mastering Accounts, Eco
      • Mastering Your Finances: Why Hiring a Home Tutor for Accounts, Financial Ma
      • Mastering Subjects with Online Tutoring: Unlocking the Potential of Managem
      • Unlocking Your Potential: Discover the Power of Online Tutoring in Manageme
      • Enhancing Your Academic Journey with a Home Tutor for Accounts, Financial M
      • Unlocking Success: Unleash Your Potential with Online Tutoring in Key Busin
      • Unleashing Your Potential: Exploring the World of Online Tutoring
      • Unlocking Academic Success: The Power of Online Tutoring
      • Finding the Best Accounts, Business Studies and Economics Home Tutor Near Y
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      • Unlocking Academic Success: The Search for the Perfect Home Tutor Near You
      • Unlocking Academic Excellence: Your Path to Success with RBL Academy's Priv
      • Unlock Your Academic Potential: BBA, BCom and MBA Home Tutors in Noida and
      • RBL Academy: Your One-Stop Solution for BBA, B.Com, and MBA Home Tuition &
      • RBL Academy: Your One-Stop Solution for Top-notch Home and Online Tuition i
      • Navigating Success: Unconventional Pathways with BBA, B.Com and MBA Online
      • Unveiling Excellence: Nurturing Business Minds through Personalized Home an
      • Navigating the Digital Academia: Unveiling the Future of BBA and MBA Educat
      • Elevate Your Learning with Expert BBA & MBA Home Tutors for Accounts, Econo
      • Unlocking Academic Success: Your Ultimate Guide to Finding the Perfect Home
      • "Unlocking Academic Excellence: Your Guide to Finding the Perfect Home Tuto
      • Unlocking Success: Your Ultimate Guide to MBA and BBA Assignment Solutions,
      • Unlocking Success: MBA and BBA Assignment Solutions for Summer Internship P
      • Unlocking Success Class 11 and Class 12 Accounts & Economics Coaching in No
      • Navigating the World of Accounts and Economics: Class 11 and 12 Coaching in
      • Navigating the World of Accounts and Economics: Class 11 and 12 Coaching in
      • Unlocking Academic Success: The Power of Online Tutors and Tuition for BBA,
      • Navigating the Academic Journey: Unveiling the Power of Online Tutoring and
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      • Navigating the Academic Waters: BBA and MBA Online Tutoring, CA Support and
      • Navigating the Academic Landscape: Unlocking Success with Online Tutoring i
      • Unlocking Success: Navigating BBA and MBA Education with Online Tutors and
      • Navigating Academic Success: Unleashing the Power of Online Tutoring for BB
      • Tutoring in BBA, MBA, and CA Education, and the Gateway to Excellence with
      • Mastering Business Essentials: Unleashing the Power of Online Tutors in Ope
      • Navigating Business Excellence: Unlocking Insights with Online Tutoring in
      • Elevating Your Academic Journey: Unveiling the World of Online Tutoring in
      • Navigating the World of Business Education: Unveiling the Role of Online Tu
      • Nurturing Success through Virtual Guidance: Unveiling the World of Online T
      • Optimizing Success: The Role of Online Tutoring in Operation Research, Oper
      • Mastering Business Acumen: The Impact of Online Tutoring in OR, Operations
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      • Case Study solution of BRANDED LIFESTYLE HOLDINGS LIMITED
      • Adidas Marketing case study solution: Adidas Marketing mix, Adidas website
      • AIR FLY AIRLINES Merger issues leading to failure of Industrial relations
      • Pandemic gives hyperlocal model a new lease of life Supply Chain Management
      • Designing Employee Compensation strategy & Effective Pay for Performance co
      • LEMON TREE HOTELS: OPENING DOORS FOR EVERYONE case study solutions 1. Ident
      • AIMA PGDM GMO4 Managerial Economics Assignment
      • MBA HR Project on analysis of intrinsic and extrinsic factors of motivation
      • EBI Project report and review on - To identify issues being faced by studen
      • ALPHABET’S GOOGLE Case study analysis and solution - Five Force Analysis of
      • AMAZON AS AN EMPLOYER SHRM case study solution- an article published in The
      • AMAZON’S KIRANANOW: THE INDIAN ONLINE GROCERY MARKET Case Study solution, A
      • Countering the Dreaded Supply Chain Bullwhip Effect in a COVID-19 World sup
      • The Supply Chain Game "Beer Game" questions and their solutions
      • Adidas Seven step scenario planning method, Evaluation of future strategic
      • Sherwood Forest Center Parcs village Case Study solution- Sustainable touri
      • Class 12 IB Psychology Project report on CAUSES, CONSEQUENCES & TREATMENT O
      • NISSAN’S ELECTRIC VEHICLE STRATEGY IN 2011: LEADING THE WAY TOWARD ZERO-EMI
      • MBA and BBA Online Tutoring: A Convenient Solution for Students in Noida
      • McDonald’s Corporation Case Study solution: Strategic issues of McDonald's,
      • Calveta Dining Services, Inc.: A Recipe for Growth HBS Case study Solution
      • QuickMedx Inc. HBS case study solution
      • Federal Bureau of Investigation, 2001 (Abridged) FBI Case Study Soluti
      • HBS CASE - Organization and Strategy at Millennium (A)
      • Excelling in Business Education with MBA and BBA Project Report and Assignm
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Adidas Seven step scenario planning method, Evaluation of future strategic options for Adidas, Adidas TOWS matrix, Adidas Value Chain Analysis and VRIO framework of Adidas, Adidas PESTEL Analysis, External Analysis of Adidas using Porters’ five force Model

Adidas Case Study solution using seven step scenario planning method

Case Study requirement

Based on the analysis on the Annual report of Adidas, 2019, You are now to assume the role of internal/external consultant to Adidas’s senior management team and present your analysis for its consideration. Your report should focus on the set of strategic options in critically evaluating the sources of competitive advantage available to Adidas based upon identifying and evaluating their resources and capabilities. In your report you will be expected to provide information through a seven step scenario planning method

1. Develop an understanding of the type of company Adidas is and the type of industry it operates in (Company background/profile))

2. Critically evaluate the trends shaping the sports industry and Adidas’s strategy. Your evaluation should begin at this stage by undertaking an environmental analysis of Adidas. The external environments involve with several factors, which can dramatically influence business strategy. (External +Internal Analysis )

3. The industry analysis concentrates on economic, political and market factors, which can impact the development of industry (TOWS matrix ).

4. Generate a set of future strategic options which leverage organisational strengths to take opportunities or rectify organisational weaknesses in order to overcome threats.

5. Evaluating and choosing between strategic options

6. Presenting strategic recommendation.

7. Conclusion.

Adidas Case Study Solution

1. Develop an understanding of the type of company Adidas is and the type of industry it operates in.

About Adidas

· Founded in 1949, Adidas AG is the largest sportswear company in Europe and second largest in world.

· Revenue earned during 2019 was € 23.6 Billion and net profit being € 1.9 Billion, 12 % more than 2018.

· Company has global presence in all continents of the world through its retail outlets, franchise, wholesale stores and E Commerce website and Adidas App.

Brand Mission

To become best sports brand through design, build up and sale of best sports products with best service and experience to its customers.

Brand Value

· Create the New through creativity, collaboration and confidence.

· Operational excellence through One Adidas.

· Focus on innovation and newness.

Key strategic Pillars

· Best service, Best product, best experience, Speed, fast Creation for operational excellence.

· Brand Leadership to provide ‘consumer obsessed’ culture to enact speed, agility and empowerment.

2. Critically evaluate the trends shaping the sports industry and Adidas’s strategy. Your evaluation should begin at this stage by undertaking an environmental analysis of Adidas. The external environments involve with several factors, which can dramatically influence business strategy.

External Analysis of Adidas using Porters’ five force Model in future

PESTEL Analysis

Political

Operations involving shipping and distribution of products and services worldwide.

Imposition of US tariffs and restrictions on Chinese goods are concern for Adidas as it will increase prices of its products

Level of political stability, integrity of politicians, the laws that the country enforces can impact operations of Adidas.

Implications

Adidas has to extend its international supply chains and follow political procedures when selling products online.

Economic

Rising labour cost in China where Adidas manufactures more than 50 % of its products.

Economic slowdown due to Covid 19 pandemic in the whole world.

Implication

Adidas has to transfer its production capacity to low wage rate countries.

Since Adidas products are not essential goods hence its demand will be impacted due to covid 19 pandemic.

Socio cultural

Demand of eco friendly products in market.

Trend of remaining fit and healthy is increasing.

Health standard, Class distribution among society, age and gender is of utmost important.

Implication

Adidas has to rely on niche marketing as its product belongs to premium class.

It has to increase consumption of raw materials which is socially sustainable and eco friendly.

Technology

Use of internet to buy and sell products online.

Application of technologies to design and develop innovative products.

Use of technologies to improvise cost and attain economies of scale.

Implication

Improves global supply chain and distribution network to avoid shortage, lateness and reduction in cost.

Continuous development of new and differentiated products to remain unique in market.

Environmental

Weather condition impacts transportation of input and output.

Climate changes can make many products useless.

Use of inputs and methods that inhibits less pollution.

Implication

· Delivery dates of the final product in the case of bad weather can be delayed.

· Sale of winter sports wear can be impacted due to global warming.

· Adidas has to use raw materials and methods which emit less pollution and less harm to environment.

Legal

· Intellectual property law, local regulations of the countries, minimum wages acts and other business laws and regulations impact operations of the business.

Implication

· Adidas has to abide by rules and regulations of countries it operates in to smoothly run its business and remain sustainable in that country.

Internal Analysis using Value Chain Analysis and VRIO framework

3. The industry analysis concentrates on economic, political and market factors, which can impact the development of industry (TOWS matrix ).

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4. Generate a set of future strategic options which leverage organisational strengths to take opportunities or rectify organisational weaknesses in order to overcomethreats.

5. Evaluating and choosing between strategic options

List of future strategic options and Evaluation of investment opportunity has been done using following factors. 1, 2, 3, 4, 5 and 6 indicates its position in table

· Improve profitability = 1

· Increase sales, market shares, return on investments = 2

· Customer satisfaction = 3

· Brand image = 4

· Corporate mission, vision and strategy = 5

· Resources and capabilities = 6

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6. Presenting strategic recommendation

Major problems company focuses currently relates to supply chain shortage in North America, high priced products, intense competition from its rivalries and high cost structure in product development. Keeping above scenario in mind, the best strategy recommended for Adidas would be intensive strategy in which company must focus on market penetration, market development and product development using its resources and capabilities and strengths to lead future of sportswear industry and become best in the world. Intensive strategy will help company to boost its sales through exploration of new market, development of products as per the demand of new market and lower cost of products through economies of scale and achieve its goal of becoming number one company in the world.

7.Conclusion

Keeping in view the problems associated with Adidas, in future, it needs to focus on taking advantage of its strong supply chain management, distribution network and brand image and enter into new market using E Commerce and social media channel, retail outlets and franchise to increase its revenue and profitability, thus establishing itself as the market leader and attaining number one position in Sportswear and accessories industry in the world. In order to achieve its mission and vision of becoming best brand and sport wear company in the world, it has to develop innovative and price competitive products that matches the need perspectives of customers and create high value for them through continuous research and development and expanding its distribution and supply chain network in new market, the way it is doing currently in North America. Adidas needs to invest huge chunk of funds in R&D to cut cost on product development and get competitive advantage in market over its rivalries.

References

· Porter, M. E. (2008) ‘The five competitive forces that shape strategy, Harvard Business Review, issue 1, pp. 78–93.

· Adidas corporate strategy. Retrieved from https://www.slideshare.net/divya-mishra/adidas-corporate-strategy.

· Adidas Group. (2019). Adidas Annual Report 2019. Retrieved from https://report.adidas-group.com/2019/en/group-management-report-our-company/corporate-strategy/sales-and-distribution-strategy.html

· Adidas Group. (2018). Adidas Annual Report 2018. Retrieved from https://www.adidas-group.com/en/investors/financial-reports/#/2018/.

· Adidas. (2019). Strategy. Retrieved from https://www.adidas group. com/en/group /strategyoverview/

· Germano, S. (2019). Adidas runs into supply-chain problems in crucial North American market.

· The Wall Street Journal. Retrieved from https://www.wsj.com/articles/adidas-runs-intosupply- chain-problems-in-crucial-north-american-market- 11552477305?ns=prod/accounts-wsj.

· Working at Adidas. (2019). Retrieved from https://www.glassdoor.com/Overview/Working-atadidas- EI_IE10692.11,17.htm

· Adidas. (2019). Adidas delivers record results in 2018. Retrieved from https://www. adidasgroup.com/en/media/news-archive/press-releases/2019/adidas-delivers-record-results- 2018/

· Adidas. (2019). History. Retrieved from https://www.adidas-group.com/en/group/history/

· Adidas. (2019). Supply chain approach. Retrieved from https://www.adidasgroup. com/en/ sustainability/ compliance/supply-chain-approach/

· Alsbiei, Omar. (2015). ADIDAS GROUP Strategy Analysis. 10.13140/RG.2.1.4534.0641.

· Kiesha Frue (2017) PESTLE Analysis of Adidas . retrieved from https:// pestleanalysis.com/ pestle-analysis-adidas/

· (“Adidas Value Chain Analysis Research Paper Example | Topics and Well Written Essays - 750 words”, n.d.) Retrieved de https://studentshare.org/business/1496571-adidas-yproute-to

· Adidas SWOT analysis. Retrieved from https://bstrategyhub.com/adidas-swot-analysis/

· Strategic management – University Teknologi, Malaysia . Retrieved from https://www .studocu.com/my/document/universiti-teknologi-malaysia/strategic-management-sm/summaries/strategic-management-integrationintensive-1/5291914/view

· Adidas. (2019). Adidas continues push for equality in sports, increasing visibility for female

· athletes. Retrieved from https://news.adidas.com/action-sports/adidas-continues-push-forequality- in-sports--increasing-visibility-for-female-athletes/s/2a1bbd18-8a81-4e19-811d- 81905304f564

· Birch, Rebekah, "Adidas: A Strategic Audit" (2019). Honors Theses, University of Nebraska-Lincoln. 166. https://digitalcommons.unl.edu/honorstheses/166

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