Organisations strategic position
In order to look towards the strategic position, it is important to look upon the different activities that helps to promote effective results by Adidas. In several areas of the world, the company consider operations in successful manner so that they can attain significant advantages as well. Hence, following are certain KPI that assists to make strategic position of the chosen business:
- Major sporting events 2014: In 2014, Adidas considered several events in sports that assists to develop its market and attain systematic work performance. In this way, in January from 12 to 26 in Denmark they organise event for supplier of Balls. Therefore, it assists to listed several aspects in the growth (Mahdi, Abbas and George, 2015). Furthermore, there is another event consider on January 16 in London UK in which the chosen company is official sponsor. On March 7 to 9 they considered IAAF World Indoor Championship in Poland where Addidas develop their part as official partner. In addition to this, they have organised Amlin challenges cup final Cardiff in UK on May 23 in which the selected enterprise considered tournament suppliers. From this date, they consider continuously event program in Portugal as sponsor. In June, the enterprise develop their activities and ascertained successful program as well. With FIFA, Adidas considered operations as partner and organise event on June 12 to July 13. In September and December, they are also organised event on different dates with IAAF, BMW, IHF women, etc.
- Group strategy: Adidas consider their group strategy as the leader in sporting goods' industry with the brand development. It helps to build passion for the sports and sporting the lifestyle which inspired by the heritage. In addition to this, the company considered KPI with creating long term shareholder values which significantly operating cash to generate effective results at workplace (HoltbrÃ¼gge and Schuster, 2017). In this way, Adidas also operating with diverse brand portfolio where they implement successful results to look upon the possible requirements. As results, the company able to considered multinational operations to attract several numbers of candidates in the business. In addition to this, the chosen enterprise leading with flexible supply chain which implement speed and agility with outpacing to the competition. They are committed to meet with the full range of customers that ensure constant products are available to produce effective results. Technical innovative and latest high fashion products are also developed with the quality standards. In order to develop systematic work performance, the company able to implement innovations so that they are responsible to consider cultural elements with cutting edge program.
- Global sales strategy: In order to implement the global sales strategy which is drive on the commercial performance of Adidas group. They building desire and meet with the consumer needs all the time. In this way, additional consumer potential outcomes need to implement in global state so that all commercial activities serves with different channels such as wholesale, retail and e-commerce. This channel focused on the approach that allow establish strong market position in the global environment. It creates cooperation to lead with different partners. Hence, it is the biggest mono branded store chain in the significant consideration. In this regard, wholesale strategy implemented with ascertain objective to deliver sustainable profits and revenue to make high growth. It collaborates with the third party retailer so that it strive on the market share and attain overall advantages as well. This strategy considered focus on the complete selling process to deal with the customers and consumers. Consistent global trends terms implemented to create standardisation with brand and solution (Mahdi, Abbas and George, 2015). Along with this, retail strategy also assist to increase future outcomes that develop brand and key drive with different reasons. Therefore, brand performance could be develop in successful way. With this regard, leverage our learning considered with direct interaction with consumers.
- Global brand strategy: Further, Adidas also develop their consideration with ascertain global brand. It is responsible for the brand positioning and create innovations at workplace. It helps to focus on the brand marketing functions which categories the different opportunities through coordinated marketing strategies (Bartlett and Beamish, 2018). Each brand is responsible to execute the strategic focuses that constant stream desired products and generate communication strategies as well. It drives to focus on the long term consideration for Adidas. As results, long term sustainable growth secure in the group to attain creativity. Global brand also focuses to drive on the development of business to build desirable brand in consumer perception. Strategic business plan expected to deliver more than 80% to target group. There are several areas classified that assists to look upon the key contributors which assists to gain sales and market share as well. Expanding fast fashion with business development included in the business (Luthans and Doh, 2018). It is mandatory to consider different channels and markets for brand development.
- Other business strategy: In order to focus on the systematic work performance, it has been seen that Adidas need to adopt such other strategy. In this way, segmentation considered which contributes in the specific market for the overall development. In this way, as per group performance they need to focus on the initiatives and improvements in global distribution. Therefore, the company can lead with golf most respected brands (Rothaermel, 2015).
Adidas -Salomon is the one of the major sports company and it is the second largest sportswear manufacture in the world. It is focus on brand specialise in footwear, apparel and accessories and quality of products. The objective of this company strategies to maintaining their business whole world. This company follows many strategies but they mostly need to used Ansoff's matrix. The main motive to these strategies expand its operations in order to preserve its global competitive positions. From the market point of view , Adidas believes in development and Performance of their business. It is related to market penetrations, market development, product development and diversification. Ansoff matrix is very help full it decides their product and market growth and strategy.
Â· it is refers to global brand visibility competitive with over local brands
Â· it is innovative and it creates a very good image of Adidas in the market
Â· It is used aggressive advertising strategy to earn market share with its existing product
Â· Market development is concerned with the Adidas improve their product quality.
Â· These strategies are very useful for enter into new market (Luthans and Doh, 2018).
Â· Adidas focused on to attract their target customer through sell new product
Â· They identify particular group like children, youngster, and middle class people.
Â· Design a product that are affordable and improve product quality according to customer taste and preferences.
Â· Main motive of these strategies is to expand their business.
Â· These strategies is considered with the risk if they are diversified without knowing what types business will help to increase their business probability.
Â· This strategies help to reduce the financial risk.
- BCG matrix is totally based on market share and growth of the market and these strategies is very important it helps to increase the profit of the Adidas company at lower price of the product. It is based on combinations of matrix there are four part of this model and it is based how much cash generated and consumed.
Â· Adidas consecrate on selling their product and generate more cash for the company and it used for the development of new product
Â· its is main financial pillars of the company that raise their profit and generate revenue.
Â· These are the product in this company with low development or very less market share
Â· Adidas fund improve their market share.
Â· Company ignore that product less demand
Â· this company product growth is very high with low market share.
Â· it refers to the product that generate sufficient amount of revenue for the this organisations but at the same time these company product need more cash to maintain their market position (Bartlett and Beamish, 2018).
Â· Adidas product high in the market with high its market share.
Â· some Adidas product which is related with the shares in the markets and also have very less growth rate.
Â· Consumer are not satisfied and less product investment or they do not raise their revenue
Â· its products in low growth in the markets with high market share
Citical evaluation of the organisation's strategy
Around the world, there are different type of companies that deliver their customers with similar type of products and services. It is important to make sure that use of SAF is done so that Adidas is able to attain their set of goals. With this respect, analysis is required to be made in which all the aspects within the business operations can be carried out in appropriate manner. In this context, there are three of the aspects that are taken into consideration and they are as follows:
Suitability: This is determined to be a concern to analyse whether an issue faced can be addressed alternatively related with strategic position. There are number of criteria on the basis of which suitability can be used (Galvanin, Barolo and Macchietto, 2010). In this context, it includes environmental suitability, capability suitability and expectation suitability. In accordance with this aspect, it can be stated that Adidas is able to make use of the strategies that are applied by them in effective manner. In order to identify the areas in which development is to be made, it consists of making use of models like SWOT, PESTLE, etc. All these are highly effective to know the business performance. There are companies that are deliver their customers with similar type of products and services. In such condition, it becomes difficult to make use these type of models so that the areas in which development is required to be made can be identified.
Acceptability: This is considered to be the source through which measuring the return, stakeholder reaction and risk from any particular strategy. The returns are measured with the help of benefits that are attained by stakeholders and this can be financial or non financial. For example, strategy is developed to provide workers with training and development. The effectiveness of this strategy is done with the help of raise in sale and profitability. In order to implement any type of strategy, there are risks involved (BarberÃ¡, Crespo and Stegmaier, 2012). It is important to make sure that all these aspects are taken into proper consideration. When measure for the success is determined, the reduction in impact of the risk is also analysed. These are highly effective make sure that all these are considered and the set of goals are attained in appropriate manner. When any types of strategies are develop, then these information is to be conveyed to key stakeholders so that they are able to perform their set of roles with full efficiency. Adidas is able to make analysis of the business by measuring the outcomes or concerning with employees.
Feasibility: This is considered to be the make or break of any chosen strategy. When any type of strategy that a firm is willing to implement, in this process when they get to identify any problem, then there are changes made. This is highly important to make sure that monitoring is done so that the strategy can be used in appropriate manner. In order to make strategies implement, there are requirement of financial support needed. Apart from this, it is also required to have employees who have appropriate skills so that they are able to determine the ways that can make the strategy to focus effectively and efficiently (Tanaka, Majima and Kawabata, 2015). When talking about Adidas, it can be stated that they get help from employees as they are the one who perform all the activities or strategies. This way, information provided by them is effective enough to use so that the rate of support can be raised in positive manner.
In accordance with the findings, it is identified that there are different type of issues identified. It is required to make sure that management has strong interaction so that they are able to determine the problems faced and steps are taken to overcome them. In condition when employees fail to perform with their full efficiency, then it has negative impact over the business. Further, to perform any of type of tasks in appropriate manner, it is required to have willingness and interest for the same. Strong or healthy interaction is required to be made so that management is able to determine the issues faced by employees and appropriate steps should be taken to overcome them.
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There are different types of recommendations that are needed to be considered by Adidas. When these are considered, then it will be suitable enough to make the firm attain their set of goals in effective manner. With this respect, below given are the recommendations:
Monitoring: Employees are the face of organization as they have direct interaction with customers. They are the one who present the products and services. When the type of roles played by them is not effective enough, then it can causes serious issues. In order to overcome these type of condition, it is required to monitor the performance of employees. When this is done, then it becomes favourable enough to determine the areas in which improvement is to be made.
Use of technology: With time, there are many changes that take place and it is important for the firm to make use of new or updated technology so that they are able to deliver customers with high quality services. Further, it can also be stated that proper management of cost should be done so that use of technology can be done in effective manner.
Research: There are frequent changes identified in taste and preferences of customers. It is important to make sure that all the set of requirements that individuals have are analysed and set are taken to fulfil them. With the help of research, the preferences of people can be identified and accordingly satisfaction can be met. In addition to this, the areas in which cited firm is required to be make improvement can also be identified and this way all the problems that are faced by them can be considered and problems can be solved.
- BarberÃ¡, L., Crespo, A. and Stegmaier, R., 2012. Advanced model for maintenance management in a continuous improvement cycle: integration into the business strategy. International Journal of System Assurance Engineering and Management, 3(1), pp.47-63.
- Bartlett, C.A. and Beamish, P.W., 2018. Transnational management. Cambridge University Press.
- Galvanin, F., Barolo, M. and Macchietto, S., 2010. A backoff strategy for modelÃÂ¢Ã¢âÂ¬ÃÂbased experiment design under parametric uncertainty. AIChE journal, 56(8), pp.2088-2102.
- HoltbrÃ¼gge, D. and Schuster, T., 2017. The Internationalization Strategy of Adidas. The Internationalization of Firms: Case Studies from the NÃ¼rnberg Metropolitan Region, p.19.
- Luthans, F. and Doh, J.P., 2018. International management: Culture, strategy, and behavior. McGraw-Hill.