Sunday, February 12, 2012

Ch.2 Strategic Planning for Competitive Advantage

        


           Every company at a certain time has to develop a strategic plan that can put them over the top, or help them be more successful than their competition. Companies take part in strategic planning for a competitive advantage which directly relates to their mission statement. As seen in the last post; Adidas aims high towards being the very best in the sports business as they try to out compete their rival Nike. 


Basketball: increasing global footprint

Adidas is committed to strengthening its position in basketball by expanding its footprint in the critical North American market and capitalising on the growing popularity of the sport in the emerging markets. To achieve this, adidas Basketball strives to build brand equity by leveraging its status as the official NBA outfitter, capitalising on relationships with some of the most promising stars of the NBA such as Derrick Rose and Dwight Howard, and building the best product in the game.

In the current season, adidas Basketball is focusing in particular on the “faster” franchise. With the introduction of the NBA Revolution 30 Uniforms, the lightest we have ever made, and the adiZero Rose shoe, adidas has positioned itself as the basketball brand that makes the lightest products in the game.

In 2011, the NBA All-Star Game in Los Angeles will be a key platform to showcase the latest innovative technology stories. 
The images above you are of the Adidas AdiZero Crazy Light one of the lightest basketball shoes ever made at only 9.8 oz. This shoe is worn by NBA's Chicago Bulls  Point Guard Derrick Rose and through innovative engineering the shoe features Synthetic leather upper offers lightweight and durability. Welded frame provides lightweight support and breathability. Sprintframe adds stability and speed through geometry to create a lightweight and supportive basketball chassis. Removable insole. Internal EVA midsole gives cushion, fit and comfort. Non-marking rubber outsole with variable height engineered traction pattern delivers ultimate grip. Additional comfort insole included. 
 

With a holistic offering in products and communications, adidas Originals is focusing on 16- to 24-year-old high school and college kids.
To address the needs of its diverse consumer groups and maximise business opportunities, adidas Originals takes a three-tier strategy to brand and product marketing:
  • First, the brand invests and innovates in new concepts, whether it’s street fashion collections, such as those designed by Jeremy Scott, or entering new market segments such as the snowboard community in alliance with one of the leading brands in this segment, Burton.

  • Second, this permanent creation of newness and creating buzz around the Originals brand then allows us to broaden our messages and expand into wider business segments such as denim, skate or our women’s offensive Sleek.

  • Third, we commercialise the sub-brand to the widest audience with concepts such as adicolor, where the consumers can find their most-loved footwear and apparel silhouettes in a variety of colours and materials, and appealing seasonal themes such as Star Wars and Mega.
To stay connected to its core teenage consumers, adidas Originals uses a constant stream of digital content to keep them interested 365 days a year. On digital media such as Facebook, adidas Originals meanwhile has over 7 million fans. This is an area where adidas Originals is currently a leader in the digital marketplace.

adidas Sport Style – style your life

What once started as a niche business has developed into a significant contributor to the Group’s top-line development. To best tap the potential of the sports fashion market, adidas Sport Style is targeting that market with a clear multi-label strategy.

Y-3: pioneering The “Y” stands for Yohji Yamamoto, the “3” represents adidas’ three signature stripes and the “-“signifies the link between the two. Y-3 targets a sophisticated, forward-thinking fashion consumer and has enabled adidas to enter the premium sports fashion market segment. Celebrating its tenth anniversary in 2011, it will remain the pioneering sportswear label that fuses sport and avant-garde design. Yohji Yamamoto’s signature design aesthetic is combined with traditional Japanese tailoring in each collection.
Growing demand from consumers has led Y-3 to open its own mono-branded stores, and today it has stores in major cities such as New York, Los Angeles, Miami, Las Vegas, Paris, Milan, Dubai, Singapore, Shanghai and Beijing. 2011 will see the opening of additional Y-3 stores in other influential cities in the USA, Asia and Europe and it will expand its business by launching the global e-commerce site Y-3store.com.

Adidas SLVR: smart design In February 2009, adidas introduced the adidas SLVR label to expand its presence among mid-price-point consumers. adidas SLVR is the smart fashion sportswear label within adidas Sport Style. At adidas, we believe that there is a need in the market for sophisticated, classic, yet fresh and confident sportswear that lasts longer than one season. The adidas SLVR label fulfils this need.

Since launching adidas SLVR, adidas has opened mono-brand stores in New York and Bangkok. adidas SLVR is also carried in all major adidas brand centres in Berlin, Paris, Moscow and Beijing as well as in adidas online stores in the USA and Europe. In terms of third-party distribution, we have taken a conservative approach, working on a pilot phase with some leading department stores such as Harrods, Selfridges and Bloomingdales over the past 12 months. From the second half of 2011, we will broaden distribution including the addition of franchise stores in China.

Adidas NEO label: fast and fresh The adidas NEO label is targeted to appeal to the fashionable teen (12- to 16-year-old) who is fully engaged in life, be it through social networking, family, friends, outdoor or sporting activities. The NEO label brings stylish products for the more price-conscious consumer who is looking for seasonal fashion items with a sports-casual flavour, constant newness, expressing their personality and reflecting their lifestyle and values.
Incorporating footwear, apparel and accessories, adidas NEO label focuses more on accessible price points, however maintaining a premium to competitors. From a gender split, we are targeting primarily the girls, which should account for two-thirds of the business over time. In further expanding the label, a vertical business model is considered the most effective way to approach the target group, taking into account the competitive environment and future demands of successful fashion brands and retailers. Therefore, we have to focus on creating retail solutions consisting of both own retail and controlled space with wholesale distribution partners. 

Strengths 
  • In many invents is the biggest sponsor 
  •  Strong management team
  •  Brand recognition and reputation
  •  Diversity and variety in products offered on the web 
  • Strong control over its own distribution channel
  •  No bad reputation like child labor or environment pollution
  • In the Soccer industry, Adidas has a stronghold
  • Sponsoring various sports and events like Olympic, streetball, tennis etc
  •  Adidas have verity of products like shirts, shoes; bags etc. and many of them are available on its own site
Weaknesses
  • High prices in some products
  • Online customer service not "helpful" or easy to find 
  • Adidas if One Step Behind Nike
  • Poor customer service 
  • Most of the shoes manufacture by Adidas is of very low quality
Opportunities
  • Increase female participation in athletics 
  •  Expanding international market 
  • Retail 
Threats
  • Amount of competitors increasing day by day 
  •  Global economic crisis 
  • Nike
 


The Adidas Group, a global leader in the sporting goods industry, has signed agreements with planning specialist provider Maple Lake to implement a comprehensive corporate merchandise and assortment planning application for its global retail operations and will continue to thrive by producing newer products in sports especially basketball which is growing rapidly through Adidas putting tons of pressure on Nike.


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