Adidas is older than Nike, it was established in

Adidas is older than Nike, it was established in the 1940s. Adidas’s strategies are very
similar to Nike. Adidas also use the cost leadership generic strategy as well as the differentiation generic strategy, but Adidas focuses more on the differentiation generic strategy. The corporate
level strategy of Adidas focuses on innovation, producing new products,
services, and processes in order to deal with the competition. Later, Adidas
Group strategically decided to move from a vertically integrated brand
structure into a functional multi rand structure for the Reebok and Adidas
brands. This created a global sales function which was responsible for
commercial activities and a global brands function which were responsible for
the marketing of both brands. The global sales function was also split into departments
of wholesale and retail, which catered to the various needs of both these
business models. This was done in order to sustain their corporate level
strategy for the long run so that these divisions could emphasize and work hard
in their respective departments in order to make the most of their efforts.
This led to the elimination of regional headquarters and moved towards more
direct communication between the local markets and the global functions. Moreover,
Adidas implemented a multi brand strategy by having a diverse brand portfolio
which allowed them to cater all segments of the market from players to almost
everyone. This gave them the competitive advantage. This helped them to keep a
unique identity and concentrate on their core competencies. Adidas focused
their investments on the best marketing and distribution channels in different
countries by critically evaluating the consumer buying behaviors and their
constant struggle to secure prime shelf space. They have also embraced
e-commerce in order to become more efficient and appeal to more customers and
make purchasing much more easily accessible to them. Their supply chain is closely
communicated and hence it helps them to customize their products which appeal
to a wide range of customers. The organizational culture of Adidas group
obligates employees to be innovative. This culture forces them to produce goods
which are highly innovative and with the use of the latest technology their
products have a very good quality. By using the latest technologies, they
produce products which enhance performances of players and they focus on sports
such as football, tennis, basketball and even training shoes which are used by
anyone with the ability to run. Adidas faces many problems every day, but sometimes almost
invisible problems can turn into crises. The first issue is that the company lost touch with
American tastes. America has a very different mindset comparing
to Germany. Adidas stopped listening to retailers’ and consumers’
opinions on what kinds of styles would sell well in America. The company
is now working to bring more American trend to its products.  Another issue is that Adidas lost major endorsement
deals to Nike.  Michael Jordan’s brand is
still generating billions of dollars in revenue for Nike. Today, Nike
endorses way more American sports players than Adidas does. In addition, the company’s product turnaround is too slow. The average turnaround from design to store shelves is
about 18 months, which prevents the company from capitalizing on emerging
trends. 

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