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Adidas ag strategic management insights

Université Paris Dauphine Strategic Management Group Strategic analysis of the adidas AG Rebecca LANGER Marie DIBATISTA Ahmed DAMA Matthieu DORNER CAdidas is a German multinational company based in Herzogenaurach Germany It has been created in and was called Dassler Schuhfabrik In the brand ?nally took the name adidas as we know it today Adidas is a shoes clothing and accessories designer and manufacturer It is the largest sportswear manufacturer in Europe and the second largest in the world Adidas revenue for was listed at billion Adidas counted stores concept stores mall corners etc in According to the website Statistica the number of retail stores had dropped in but increased in with stores concept stores mall corners etc As a sportswear company Adidas is competing against the leisure industry in general In the sport speci ?c area companies are controlling more than of the market Adidas is one of these companies and needs to adopt strategic advantages to stand out amongst many others C Macro Economic Diagnostic In order to understand the key success factors and the threats related to the industry it is important to proceed to an external diagnostic also called macro-environmental diagnostic Macro- environment refers to the demographic economic technological political and socio-cultural environment The analysis of the environment has two objectives the assessment of the various elements likely to a ?ect its activity - and - the identi ?cation of environmental opportunities or threats Political factors There are ?ve main criteria in the political branch of an external diagnostic governmental pressure governmental stability consumer protection monetary policy and European pressure First of all as every international ?rm selling products worldwide it requires to follow political procedures and international trade agreements even when selling online Secondly political pressure is most likely to delay product delivery and shipment Therefore adidas needs to assess the risk of wars terrorism and political stability coups etc in its targeted countries Thirdly consumer protection is one of adidas bigger concern Indeed the brand decided to adopt a consumer friendly policy to ensure the health of its buyers by eliminating PVC making process Therefor Adidas is respecting both product safety laws and consumer safety products regulations Economic factors Growth interest rate political unemployment in ation rate are the main concerns of the economic diagnostic The main question adidas should be asking is where to produce and sell to ensure growth and opportunities To be competitive adidas needs to be as cheap as possible especially in rd world countries the level of wealth of the population being lower As a consequence adidas manufactures its goods in China because of labour intensivity low cost of creation and low monetary power It allows the brand to be as cheap as possible Social factors Factors such as wealth repartition demographic factors age gaps lifestyle trends and fashion and health are important social factors Indeed it is important for adidas to consider the average age of the population and the wealth repartition of its targeted country Being a sports