Adidas statement directly refers to a certain

Adidas statement directly refers to a certain

Adidas case study Mission Statement Evaluation Matrix Adidas has a non-traditional form of a mission. Adopting the “one” theme, the company wants to signify a sense of harmony and integration between its people, plan and goals.

“ AG is ccommitted to being a global leader in the sporting goods industry by producing brands that are novel, fun, and have a passion for atheltics and active people worldwide. We are committed to delivering industry leading financial results, innovating and the most advanced products, focusing on our consumers, and maintaining all of this while being a good corporate citizen”The mission stsatement indirectly presents many of the well known components of a mission as follows: Component| Availability| Comment| Customers| Yes| * The mission statement directly refers to a certain type or category of customers, who are the athletes and the active people. | Products| Yes| * It mentioned that it is targeting to be a global leader in the sporting goods industry| Component| Availability| Comment|Market| No| * As a “ global enterprise”, no specific Market has been referred to | Concern for Profitability | Yes| This component is apparent in: * The Goal “ producing barnds that are novel, fun and have a passion”| Technology | No| * Not mentioned directly, though “leading financial results, innovation and producing most advanced products” requires employing modern technology. | Self Concept | Yes| What differentiates Ford as self concepts are: * Working together effectively as a lean team. Demonstrate and build functional and technical excellence| Concern for Employees | No| * The mission statement does not mention any thing about the employees| Concern for Pubic | Yes| * Since success is measured by customers, they did not forget to highlight being “a good corporate citizen” | * * Strategy Formulation * External Factor Evaluation Matrix – EFE Matrix The External Factor Evaluation (EFE) Matrix| Key External Factors| Weight| Rating| Weighted Score | Opportunities| 1| * Increase female participation in athletics| 17%| 4| 0.

8| 2| * Collaborate with other online retailers to offer Adidas products| 16%| 3| 0. 48| 3| * Possibility of outsourcing the web development and e-commerce to a third party developer| 11%| 3| 0. 33| Threats | 1| * Nike’s strong reputation in the footwear and apparel industry.

| 18%| 3| 0. 54| 2| * Negative image created by the sponsored athletes (i. e. Kobe Bryant and his sexual assault case)| 8%| 2| 1. 6| 3| * Increase in the Price of Raw materials| 10%| 1| 0. 1| 4| * Continuing challenges in import/export duties| 5%| 2| 0.

| 5| * Nike has signed up 22 of China’s 28 sports federations to outfit most of its athletes. | 10%| 2| 0. 1| 6| * On going global recession| 5%| 2| 0.

1| Total | 100%| | 3. 49| * * * * * * * * * * * Weights based on importance of each factor as in;0% not important, 50% important and 100% very important Rating based on how Addidas current strategies responses to the external factors as in ; 1 = poor, 2 = average, 3 = above average and 4 = superior * * * Internal Factor Evaluation Matrix – IFE Matrix The Internal Factor Evaluation (IFE) Matrix|Key Internal Factors| Weight| Rating| Weighted Score | Strengths | 1| * In many invents is the biggest sponsor| 5%| 3| 0. 15| 2| * Strong management team| 10%| 3| 0. 3| 3| * Brand recognition and reputation| 10%| 3| 0. 3| 4| * Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc. )| 5%| 3| 0. 15| 5| * Strong control over its own distribution channel | 5%| 3| 0.

15| 6| * In the Soccer industry, Adidas has a stronghold| 5%| 3| 0. 15| 7| * No bad reputation like child labor or environment pollution| 10%| 3| 0. | Weaknesses | 1| * High prices in some products. | 15%| 1| 0.

15| 2| * Underperformance of Reebok. | 5%| 1| 0. 05| 3| * The direct sale to consumers is creating conflicts with its own resellers| 5%| 1| 0. 05| 4| * E-commerce is limited to USA| 15%| 2| 0. 3| | Total | 100%| | 2| Weights based on importance of each factor as in;0% not important, 50% important and 100% very important Rating based on how Addidas current strategies responses to the external factors as in ; 1 = poor, 2 = average, 3 = above average and 4 = superior Competitors Athletic Shoe Market ShareSWOT MATRIX | Strengths 1.

In many events is the biggest sponsor 2. Strong management team 3. Brand recognition and reputation 4. Diversity and variety in products offered on the web (footwear, apparel,sporting equipment, etc. ) 5.

Strong control over its own distribution channel 6. In the Soccer industry, Adidas has a stronghold 7. No bad reputation like child labor or environment pollution| Weaknesses 1. High prices in some products. 2. Underperformance of Reebok 3.

The direct sale to consumers is creating conflicts with its own resellers 4.E-commerce is limited to USA| Opportunities 1. Increase female participation in athletics 2. Collaborate with other online retailers to offer Adidas products 3. Possibility of outsourcing the web development and e-commerce to a third party developer| SO Strategies/initiativesS3+S4+S6+ O3= Product Development| WO Strategies/initiativesW3+W4+O2+O3= Market Penetration| Threats 1. Nike’s strong reputation in the footwear and apparel industry.

2. Negative image created by the sponsored athletes (i. e. Kobe Bryant and his sexual assault case) 3.Increase in the Price of Raw materials 4. Continuing challenges in import/export duties 5. Nike has signed up 22 of China’s 28 sports federations to outfit most of its athletes.

6. On going global recession. | ST Strategies/initiativesS4+S5 + T1+ T2+T3= Market Penetration| WT Strategies/initiativesW1+W2+T2+T3= Retrenchment| Recommendations From the above analysis and related recommendations, we can draw the following conclusions * Adidas has a traditional mission that signifies a global company with global goals, like producing new goods and satisfying the customers’ needs.It does not include any unique words or a clear philosophy for the company. This is a negative figure for such company.

Another point of weakness in the mission statement is that it does not mention its employees or workers as if they are not there and not part of its success. * External evaluation factor analysis indicates that Adidas is doing well, taking advantage of the external opportunities and somehow avoiding threats facing them. However, Nike’s nightmare is still there.

Internal evaluation factor analysis indicates that Adidas is in the average rank internally with a need for better dealing with internal issues. * The conclusion drawn out of the SWOT Matrix is to adopt the following strategies: Product Development, Market penetration and retrenchment. * The Competitors figure shows that Adidas is in a bad position in Market in comparison to Nike. * So, Adidas should consider the following: 1- Enhancing products reputation. 2- Focusing on the competition with Nike. – Getting Customers’ feedback in order to improve the brand 4- Working on the brand awareness in countrie’s which do not have the soccer culter.

5- Pay much more attention to the geographical expansion of the company ——————————————– 1 . Weights based on importance of each factor as in;0% not important, 50% important and 100% very important 2 . Rating based on how Addidas current strategies responses to the external factors as in ; 1 = poor, 2 = average, 3 = above average and 4 = superior