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 part. Innovate and create new products to compete with other
competitors in the industry is Adidas’s corporate level strategy. Moreover,
Adidas use a multi brand strategy to give them competitive advantage. To keep an
inimitable identity, the company have a diverse portfolio that helped them to
cater all parts of the market. Adidas spend most of their money on marketing
and distribution channels in different countries. The company also use e commerce
to make purchase much more convenience for customers. Their supply chain is closely
communicated and hence it helps them to customize their products which appeal
to a wide range of customers. In addition, Adidas’s culture forces employees to
be innovative with the use of the latest technology to produce new products. By
using the latest technologies, they produce products that improve performances
of players. The sports that the company focus on are football, basketball and training
shoes. Adidas
faces many problems every day. Sometimes small problems can turn into a
disaster. The first main issue that
the company have would be making 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.