Essay About Main Reason And New Markets Technology Innovations

Vrio Adidas
VRIO Adidas is one of the most famous brands in the world and it also sponsors athletes/sport teams in a wide variety of sports. Adidas marketing strategies, and its highly innovative product team, is one of the core competencies. The main reason behind acquiring Reebok was the competition with the Nike. Reebok brand has both kind of products i.e normal use and athletic. In order to gain a competitive advantage, Adidas is planning to reposition Reebok as a fashionable brand for both professionals and normal usersphysical capability At present adidas is operating in 64 countries with other retails selling their products Adidas is manufacturing its product in asia, south and central America and Europe adidas own factories and sub contract factories to produce their products. Human resources Adidas currently hire 53,731 (annual report 2014) which makes it one of the best recruiter in the world. Herbert Hainer CEO of Adidas group has 35 years of experience at Nike (Adidas biggest competitor) he played a key role in Reebok takeover. The employees working for Adidas is balanced 50% male and 50% females. Integrated R &d and automated inventory controlThe integrated r&d strategic innovation of Adidas will help the firm firm maintain the high product quality compared to the competitors. It is very difficult for the competitors to imitate the product quality of firm’s resources and capabilities. Adidas can sustain by continuously improving their capabilities and core competencies Supply chain capabilityAdidas has a global supply chain network with the complete chain being outsourced. The company’s supply chain is long and complex. The reason for outsourcing the manufacturing is the lower cost of raw materials and labour in Asian countries. Adidas moved its production overseas in 1993 in order to stay competitive. From the manufacturing facilities in China, Indonesia, Vietnam, Thailand and Turkey the finished products are flown to hubs in the US, Europe and Asia. Moreover it is not possible to imitate Adidas financial resources for a new company as it requires hefty initial. Financial control Adidas revenue  27.8 billion dollars with a net profit of one billion dollar. Adidas group has 10 % shares ion Bayern munich as well ADIDAS CULTURE STRENGTHSStrong internal corporate structure The largest no. Of geographically advantageous stores Large economy of scales and distribution channels Strong financial positions Strong brand Competitive pricing Know how of reebok An effective advertising campaign Collaboration with well known designers and celebrities Opportunities The growing  popularity of the sport brands The development of the e commercial sphere Entering new markets Technology innovations Changing  consumers lifestyle WeaknessesHigh costs Dependency on research and development Low market share in the US Adidas group main focus in on the adidas brand, other brands suffer on resources. WeaknessesHigh costs Dependency on research and development Low market share in the US Adidas group main focus in on the adidas brand, other brands suffer on resources.                 ThreatsNew entrances into the market Competitors from foreign markets Increase pricing Counterfeits Other brands offer more styles and varieties, thus more competitionPirated/fake imitations affect brand imageADIDAS CULTURE Company is well diversified with employees from different ethnicities. According to adidas, achieving the objective to be global leader in sporting industry depends on the passion, talents and engagement of the employees within the organisation. As an employer the company takes the responsibility to ensure employee health and safety. The employees are always rewarded in a fair way for their achievements and hard work.