Strategic Analysis of Adidas AG

Table of Contents

Sections | | Pages | Ⅰ. | Introduction | 3 | Ⅱ. | Suitability Evaluation | | | 1. Strategic Position | 3 | | 1.1 Competitive characteristic | 3 | | 1.11 Five Forces Framework | 3 | | 1.2 Strategic capabilities | 5 | | 1.21 Dynamic Capabilities | 5 | | 1.22 VRIN | 5 | | 1.3 Vertical Integration | 6 | | 2. Strategic options | 7 | | 2.1 Market development | 7 | | 2.11 Market Driver | 7 | | 2.12 Competitive drivers | 8 | | 2.13 Cost drivers | 8 | | 2.2 Product development | 8 | | 2.21 Product innovation | 8 | | 2.22 E-Business development | 9 | | 3. Method | 10 | | 3.1 Merger | 10 | | 3.11 Motivation | 11 | | 3.12 …show more content…
V stands for value in terms of strategic capabilities: valuable resources refer to the vision and implementation of business strategies in order to improve efficiency and effectiveness of the foundation of the company. Adidas AG used an e-business strategy to offer an online platform for customers with different demands. It provides potential competitive advantages. Moreover, it also increases sales as it means that process of sales became much easier and faster in the current situation of market.
R stands for rarity which means the resource must be rare in this sense. With the integration of e-business and supply chain, Adidas AG gained the biggest competitive advantage among the sport- goods industries.
I stands for inimitability which means difficult to imitate. Adidas AG should always keep products innovation in sports goods industry. As Figure 3 below shows, in aspect of change, Adidas AG needs to guarantee a core technology of production which can not be plagiarized easily by the other sport-goods manufacturers in order to keep ahead of sport-goods industry.

Source: Johnson et al (2011)
Figure 2: Criteria for Inimitability of Strategic Capabilities
N stands for non-substitutability: Different types of substitutes for resources that cannot have a copy. In terms of cooperative strategy, Adidas AG has formed its unique style of functional shoes with high technological