Adidas Nike’s. Adidas also use the cost leadership strategy

Adidas is older than Nike, it was established in the 1940s. Adidas’s
strategies are very similar to Nike’s. Adidas also use the
cost leadership strategy and the differentiation strategy, but Adidas focuses more on the
differentiation strategy part. The corporate level strategy of Adidas focuses
on innovation, producing new products, services, and processes in order to compete
with other competition in the industry. Moreover, Adidas applied a multi brand
strategy that gave them the competitive advantage. The company have a diverse portfolio
that helped them to cater all segments of the market from players to others. This
helped them to keep a unique identity. Adidas focused their investments on the marketing
and distribution channels in different countries by evaluating the consumer
buying behaviors. The company also embraced e commerce in order to become more effective
and appeal to more customers and make purchasing much more easily accessible to
them. Their supply chain is closely communicated and hence it helps them to
customize their products which appeal to a wide range of customers. The
organizational culture of Adidas group obligates employees to be innovative.
This culture forces them to produce goods which are highly innovative and with
the use of the latest technology their products have a very good quality. By
using the latest technologies, they produce products which enhance performances
of players and they focus on sports such as football, tennis, basketball and even
training shoes which are used by anyone with the ability to run. Adidas
faces many problems every day, but sometimes almost invisible problems can turn
into crises. The first issue is that
the company make products without considering the American tastes. America has a very different mindset comparing to Germany.
Adidas did not listen to the retailers’ and consumers’ feedback on what American
prefer. The company is now working to bring more American trend to its
products. Another issue is that Adidas lost endorsement deals
to its competitor, Nike. Michael
Jordan’s brand is still creating billions of dollars in profits for Nike.
Today,
Nike endorses more American sports players than Adidas does. In
addition, the
company’s product turnaround is too slow.