Adidas Strategic eport
Illustrated Strategic eport
The manufacturing concern which was selected by me is Adidas group. Adidas started its operations in 1924 by odulf Dassler. It was the first company who created running and training shoes and sport garments in the world without the use of electricity. These shoes were handmade. From now onwards, it is the second largest shoes producer of the world after eebok. Adidas has extended its operations by entering into the business of sports goods as well (Adidas Group History 2013).
Adidas group is a giant group in the field of shoes and clothes manufacturing. It has big profits, great reputation in the market. According to the group policy and directors of the group, company never compromise with the standards designed for the welfare of people and societies. As my task is to review the policies and procedures related to marketing strategy, so the…… [Read More]
This is based on both historical precedent and the fact that the firm has started to see year-over-year revenue declines. The company remains highly leveraged and although they are expected to remain liquid, this reality will place some constraints on Adidas. The company is likely to remain in a holding pattern for the next year, awaiting both economic recovery and the two major marketing events in 2010 -- the inter Olympics and the orld Cup. Thus, the best trading strategy for Adidas in the short-term is to hold.
The long-term strategy, however, will be different. Going out as far as 2015, the decision needs to be made based on the broader trends in the company's business and the likelihood of it extending its competitive advantages and core competencies. As noted, the greatest strength of Adidas is the economies of scale it achieves, in particular with respect to its international marketing…… [Read More]
Adidas has a solid performance as a sustainability leader -- economic, environmental, and social. This despite accusations of slave-labor in China, which proved to be less than accurate. The company actively engages its stakeholders in key day-to-day operational issues that involve the environment, along with leading the market in advanced supply chain efforts to promote stability (Adidas, 2009).
Adidas' strategy is to "be the leading sports brand in the world." To accomplish this they must merge the idea of Sports Performance and Sports Style. Adidas realizes that individual departments and segments must have the authority to act, to generate ideas, and to postulate and decide because they have their ears closest to the client. Integrating a highly sophisticated system in which groups talk (email, video chat, etc.) and combine ideas levels out the hierarchy and is more responsive to market needs (Adidas Strategy, 2007).
Adidas. (2009). SAM…… [Read More]
To further its leading place in this vital segment, the profile as the brand delivered the ideal fit for women. The goal was to propose pioneering women's footwear, apparel and accessories across the sports and lifestyle category, in order to enable women to convey their uniqueness.
With both stylish and useful products, emotional promotion concepts and partnerships with the best athletes (e.g. Amelie Mauresmo, Carolina Kluft, Nicole Vaidisova) and other celebrities (e.g. Scarlett Johansson), the corporation showed that Reebok was a product that fully understood the requirements of the female customer. But such niche segments ignored the male and children's market section, incurring a large amount of lost opportunity in these segments. For this reason, Adidas took steps to diversify the market positioning of the company (Annual Report 2006: Adidas, 2006).
And this was a necessary step that Reebok could not quite accomplish by itself. According to Terry Lefton (2009),…… [Read More]
Adidas' Strategic Evaluation and ecommendation
Adidas is a multinational corporation that deals with sportswear. The company deals with the production, designs and the creation of sports clothing and accessories. The company has been able to develop to become one of the leading companies in the world with its products being sold across the globe (Mahdi, Abbas, Mazar, & George, 2015). The company faces a lot of competition from some of the leading companies in the market like Puma and Nike. However, the company has a competitive advantage as the brand is respected for its interests in making sure that the athlete wears what he wants. Besides, Adidas has a large market share in Europe and this enhances its prospects of profitability in competitive sport apparel industry.
Business Level Strategies
The business level strategies relate to implementing technology in various activities of the company just as other large companies do. The…… [Read More]
Comparing Nike vs. Adidas Finances
What is the companies product or service?
Nike -- Nike is in the sporting goods industry and produces shoes, clothes, and sporting goods.
Adidas -- Adidas is in the sporting goods industry and provides "state-of-the-art sports footwear, apparel and accessories" (Adidas, What We Do).
When was the company established?
Nike -- Nike was established in 1962 under the name Blue ibbon Sports, with the name being changed to Nike in 1971 (Nike, Timeline).
Adidas -- Adidas was established in August, 1949 (Adidas, History).
When did the companies go public?
Nike -- Nike first went public in 1980 (Nike, Timeline).
Adidas -- Adidas went public on the Frankfurt and Paris Stock Exchange in 1995 (Adidas, History).
What is its stock ticker symbol?
Nike -- Nike's stock ticker symbol is NKE (Nike, Stock Quote).
Adidas -- Adidas's stock ticker symbol is ADSG.DE
e. On what index…… [Read More]
Nike vs. Adidas Competitive ecommendations/Analysis
Nike currently employs an incredibly effective marketing and advertising campaign that has resulted in the corporation maintaining the number 1 spot in sales for athletic wear nationally and globally. Part of Nike's success lies in its creative use of marketing tools such as the "Just Do It" campaign to attract new consumers. Consumers continue to come back for product year after year, because of exceptional service, quality control measures and product differentiation.
The report below details a market analysis for Nike compared to the number two competitor, Adidas. Among the findings discussed are the differing marketing and advertising strategies Nike has successfully used to beat out the competition. Part of Nike's success as mentioned above is due to the creativity utilized in marketing campaigns. Nike has also actively sought out celebrity endorsements and sponsorships, which has resulted in positive associations…… [Read More]
The fact that it occurs only once every four years also means that its visibility and permeation of cultural awareness is far overshadowed by the daily hum of sports broadcast and sports coverage.
Adidas appears to have misjudged the American market in spite of its success with the McGrady shoe. This should be seen as a precedent to be repeated rather than an isolated success.
The new slogan which contends that 'Nothing is Impossible' may resonate with the buying public. However, it lacks many of the qualities which make 'Just Do it' so iconic a tagline. The imperative which is present in the Nike tag is simply not found in the 'Nothing is Impossible' concept. Something more of an adage or a motivational phrase than a company slogan, it lacks the Nike slogan's clear sense of action and urgency. Instead, it posits a claim that many may be apprehensive to…… [Read More]
Nike and Adidas both compete in the athletic apparel and footwear industries. Both companies offer roughly the same lineup of goods, so therefore are good corollaries for one another. Nike is based outside of Portland, Oregon while Adidas is based outside of Erlangen in Bavaria. The industry is worth approximately $126.3 billion worldwide, according to Global Industry Analysts, Inc. (2011). Nike's sales of $19.0 billion indicate that it has an approximate market share of 15%, while Adidas has $11.99 billion in sales, indicating an approximate market share of 9.49%. These are the two leading firms in this fragmented industry. The products for each company include athletic apparel of all types, athletic shoes of all types, some casual clothing and some sporting gear as well, for example soccer balls. Both companies operate in a wide range of sports as well, meaning that both have very diversified product lines.
Neither company does…… [Read More]
Nike Market esearch
The author of this report is to cover and evaluate the perceived customer service scores and perceptions that exist for Nike and from its customer base. Nike is based on Beaverton, Oregon and has established itself as a giant in the shoe industry both in the United States and around the world. However, the perceptions of Nike's customers are important to pay attention to because of competitors snapping at their heels as well as public relations black eyes from supposed sweatshops and other business tactics that are deemed to be beneath an American company with such a high stature. While Nike has some concerns surrounding customer service and customer perception, the news is much more positive than negative for the company.
In the name of seeking out the perceptions of Nike's customer service scores, the bad news will be looked at first. As far back as…… [Read More]
Adidas was formed in Herzogenaurach, a town in Mittelfranken, north of Nürnberg, not far from Erlangen, and remains headquartered there today. The company was founded by Adi and Rudolf Dassler. The brothers eventually had a falling out, with Rudolph founding Puma. Adidas has grown to become one of the leading designers and marketers of sports apparel, footballs, and other related items. The company operates globally, has revenues of nearly €20 billion, and profits of €0.72 billion in 2015 (Adidas 2015 Annual Report).
Adidas competes against Nike, Reebok, Puma, and several other brands in this space. Major product lines include footwear, apparel, and footballs. Adidas sponsors a lot of athletes and athletic clubs as part of its marketing. Ultimately, this industry is characterized by incremental changes to basic product designs, a strategic emphasis on marketing spending, and distribution, and companies that utilize a global strategy, selling the same way…… [Read More]
Adidas Business Plan
The following pages present an in depth business plan on Adidas developing a customized footwear line. This is the updated version of the preliminary plan submitted previously. This project plan describes in detail the necessity of Adidas developing a customized shoe line in accordance with the strategy behind NikeID. The project objectives, scope and deliverables have been updated in order to satisfy the changing needs that Adidas must face on environmental level. Project risk and the responsibility matrix have also been improved as a requirement of project plan updates. The Schedule and Constraints section addresses each activity included in the project in detail.
The competitive environment in which Adidas develops its activity requires the company to establish innovative strategies on product development and marketing. With Nike investing significant resources in product innovation, but also in modern marketing techniques, Adidas is forced into copying its competitor's strategy in…… [Read More]
Customized Shoe Service
he project is represented by developing a customized shoe service for Adidas' customers. he idea is replicated after Nike's ID service. he success of Nike's customized shoe service determines Adidas product development researchers to develop such a project that their customers can enjoy. Basically, the service consists in personalizing customers' shoes with glow in the dark paint in a variety of prints.
he importance of the project relies on the service generating increased sales for Adidas. his is also intended to increase customer satisfaction. It is likely that most customers that will address customized shoes already are customers of Adidas. However, a certain number of new customers can be attracted. he customized shoes project is also intended to help Adidas differentiate itself from other spot shoes producers.
Involvement by Other Departments
he development of a customized shoe service is a complex project that requires the collaboration of…… [Read More]
Marketing Research on Athletic Shoe- Industry
The brand caters a promise of reliability, in effect that one stand behind their product. Branding is not an action we can realize overnight. A successful brand is built over time from the hundreds of little things we do right. . The brand is, at its core, an declaration of a standard performance. It guarantees that the product or service carrying that brand will live up to its reputation. The merit of a brand rises or falls with the integrity of the people behind it. The principles of the principals build or rupture a brand.
When running shoes first came on the market, it was a marvelous development over the old sneakers and high-tops. But soon the market became crowded with shoes bearing a wide variety of features, at a wide range of price points. The main players in the sports shoe industry are…… [Read More]
Shoe Project -- Phase II
As noted in the first phase of this series of reports, the objective of the Adidas customized shoe project is to offer a solution that brings Adidas into the same realm as its competitors while at the same time exceeding the similar offerings that the competitors offer. The Nike ID offering is obviously not unlike that of the Adidas offering but the Adidas Corporation will perfect and hone the offering in such a way that is clearly superior to that of Nike and other companies that offer a customized shoe option.
The scope of the project is quite simple. Adidas corporation will construct and develop a framework that allows for the exhaustive yet efficient mechanism for customer to custom-order shoes that are customized to the preferences and desires of the customer while at the same time allowing for a process that…… [Read More]
Consumers Buying Behavior
Consumer Buying Behavior
Marketing of Two Brands based on Consumer Buying Behavior Models
Marketing of Two Brands based on Consumer Buying Behavior Models
The report on Case
Hedonic Factor (Enjoyment)
Marketing of Two Brands based on Consumer Buying Behavior Models
Marketing is a very important component in today's business. And for this purpose the businesses need to know the buying behaviors of the consumers. Chandon, Morwitz and einartz (2005) defined purchase intentions as customers' intentions to purchase or repurchase. They showed that purchase intentions are spontaneously directed to purchase behavior. Current paper is a report on the marketing strategies of two brands; Visio television and an Adidas Micoach running pacer based on the consumer buying behavior models.
For the current assignment I have two products. One is a Visio television that I have selected for my son to…… [Read More]
It can often leverage the personality of the athlete to reinforce its core values such as the use of John McEnroe, the tennis champion noted for wanted to change the world of tennis. and, it can leverage teams and athletes as part of its marketing localization strategy such as the use of soccer in Europe.
4.Yes, Steve and arry's is a huge threat to Nike. Like Nike, the company is leveraging athletic superstars to endorse its product. NA player en Wallace appears on Steve and arry's home page. To date, the company appears to have a niche base of consumers who cannot afford the more expensive Nike products, but if it can convince consumers that the quality of its product is just as good as Nike's, it could attack Nike's broader market.
Urde, Mats (2003). "Core Value-ased Corporate rand uilding," European Journal of Marketing, Vol.…… [Read More]
This approach is highly congruent with the guidance of marketing experts such as Wheaton (2004) who advises, "There are synergies between different lifestyle sports industries and their media. Corporations make equipment for several lifestyle sports, sometimes under different brand names. Clothing companies like Quiksilver sell to a range of lifestyle sport markets including skating, surfing, windsurfing, snowboarding and have been quick to exploit the potential of emergent and rapidly growing activities like kite-surfing" (2004, p. 10). Because the company also designs and manufactures the core sporting needs for these sporting enthusiasts, it is important to identify defining characteristics of this market. These sports are characterized by a number of features of interest to Quiksilver's and its competitors' marketers with respect to their various core product and accessory lines, including those set forth in Table 2 below.
Defining features of the surf and sports industries
Such…… [Read More]
Therefore, the company needs to aggressively pursue legal action against companies to ensure that the integrity of its brand is maintained.
A high profile event like the orld Cup can provide a platform for an athletic wear company, so that company must move aggressively to ensure that no other company steals the spotlight for which it has rightfully paid. This approach is necessary as well because of the lack of protection for intellectual property in some countries.
This article also illustrates the concept of expansion by acquisition. In order to bolster its presence in North America, the largest market for athletic apparel, Adidas purchased Reebok. The company can retain the brand it has purchased, or utilize the acquisition's distribution channels and market share for its own advantage. The strength of the acquired brand will in part dictate this decision. It should be remembered in such situations that the specific products…… [Read More]
It is preisely beause the ompany deentralized its ontrolling brands into less bulky pakages that the CEO ould streamline their prodution proess and ahieve greater results. However, the Hard Rok Cafe artile showed exatly the opposite business strategy. Whereas traditionally all Hard Rok Cafe's and Hotels provided their own entertainment, the new strategy that Hard Rok is attempting to reate will link many of these operations together through the internet and digital feeds. They argue that this will allow ustomers from loal venues to experiene the large venue attrations that Hard Rok is known for. They in effet believe that greater integration of its basi operations is the key to suess. This is a sound and logial strategy, beause the importane of providing "big time entertainment" in loal venues is a very appealing and proven method for getting more ustomers. Hard Rok's onsolidation strategy allows them to go to the…… [Read More]
microeconomic event related to New Balance Athletic Shoe, Inc.
The shoes industry just like any other business activity encompasses of diverse footwear retailers, manufacturers and wholesalers. The chief wholesalers in the entire United States of America marketplaces especially the brand name owners obtain the shoes from the independent manufactures. The retail footwear organizations range entails the small shoes businesses that provide shoes to the local citizens to the multinational chain companies. However, most of the footwear industries all over the world operate in both the wholesale and retail arenas hence capable of increasing the profitable returns. Operating through both the wholesale and retail arenas also assist the shoe companies to reduce the risks the organization faces. For instance, New Balance Athletic Shoe, Inc. incorporates all the retail and wholesale plants to acquire ready-made materials for the production of the final footwear product (Carroll, Archie and Ann 71).
Analysis of current…… [Read More]
Athletics Supreme Marketing Plan
Company Overview and Market esearch
Overview of Company
Athletics Supreme is a company that has been in the sporting product industry for 10 years now. The main offices and largest retail store of the company is located in New York City. In particular, the company has become a household name in providing sports equipment, such as tennis rackets and balls, rugby balls and footballs. In addition, the company offers sporting exercise equipment, such as treadmills, weights, rollers and the like. The company has grown, both in scale and size, over the past five years. It has been able to open several other retail stores in different states across the nation. In addition, the company has also been able to expand globally with one store in Canada and another in the United Kingdom. In the contemporary, owing to the increase in demand from consumers and popularity, Athletics…… [Read More]
A high production value and an industrial feel throughout much of the song impart an engagingly chaotic and progressive feel to the song.
6. MC Lyte is one of the few successful female rappers. In "Paper Thin" MC Lyte raps over minimalist music that includes just the beats and the occasional sound of a synthesized but unidentifiable instrument playing an eerie melody. Lyte tells the story of a jilted lover, with an overall theme of empowerment. Occasional encouragement from background vocals and a chorus of "ooooh" refer to African music. MC Lyte also draws gender issues into the repertoire of rap lyrics.
7. The Beastie Boys "Paul Revere" stands out because of the reverse-played scratch sound. Synthesized maracas add sonic texture, but the focal point is the amusing story. "Paul Revere" is one of many New York area rap songs denoting a shift of content away from love of music…… [Read More]
In addition, it will be necessary for the company to continue to use technology to stay on the cutting edge of shoe innovation.
Adidas." MarketLine 2006. Datamonitor database. Datamonitor. University of Phoenix, Phoenix, AZ. November 28, 2006 http://dbic.datamonitor.com.
Beckett, W. "Merging Performance and Fashion." Women's Wear Daily 192(39) 2006 Aug 24: 9. Business Source Complete. EBSCOHost. University of Phoenix, Phoenix, AZ. November 28, 2006 http://web.ebscohost.com.
Binole, G. "Asian Market Forces Could Affect Nike." Portland Business Journal. (1997 Nov 7). November 28, 2006 http://portland.bizjournals.com/portland/stories/1997/11/10/story3.html.
Callaway Golf." MarketLine 2006. Datamonitor database. Datamonitor. University of Phoenix, Phoenix, AZ. November 28, 2006 http://dbic.datamonitor.com.
Daley, W. The Emerging Minority Marketplace. No date. U.S. Department of Commerce. November 28, 2006 http://purl.access.gpo.gov/GPO/LPS70698.
Fredeen, B. Knowing Nike's Customers. 2000 Feb 1. Motley Fool. November 28, 2006 http://www.fool.com/news/foth/2000/foth000201.htm. v.
Ellis, K. "Global Competition Intensifies Industry Lobbying." Women's Wear Daily 191(86) 2006 April 24: 14-15. Business Source Complete. EBSCOHost.…… [Read More]
The positioning statement is also referred to as the brand strategy or positioning strategy. In particular, it is a statement that offers a concise, but detailed description of the core target audience to whom a brand is heading for, and a convincing depiction of how the marketer wants them to perceive the brand. The main products that I was enticed to purchase using social media were shirts from Target. The positioning statement the company used is "Expect More. Pay Less." This is an appealing and compelling description of the products being retailed by the company. This implies that the products that I would purchase would be cheaper and will be of a greater value. Social media portrayed this positioning statement in a very effective manner. First of all, the statement is perceived next to the name of the company every time a search for "Target" is done. In addition,…… [Read More]
ith respect to footwear lines, the industry is segmented. The segments are often by sport, with Classic being a non-sport addition. The leading sport is running/jogging, which was worth $3.16 billion in 2008; classic was second with $1.98 billion and kids was third with $1.78 billion. Sport-specific segments, including tennis, basketball, soccer, skate/surf, outdoor/adventure and sports sandals are smaller, but can be high growth segments. Many of these segments are intensely competitive and the major players tend to compete in all segments vigorously. Thus, while K-Swiss has attempted to carve a niche for itself, it still faces intense competition from other differentiated providers.
The industry is dominated by two major key success factors -- marketing and design. Firms in the athletic footwear industry spent billions on marketing, including endorsements deals with athletes, advertising, and securing distribution networks. For smaller firms like K-Swiss, distribution is more difficult to achieve, but it…… [Read More]
Figure 2: Using the BCG Growth/Share Matrix To Evaluate Eleftria Market Opportunities
Source: (Anantachart, 2004)
The e-retailing objectives for Eleftria Athletic shoes and their plans for attaining them are defined here. The first objective is to create an e-retailing strategy that capitalizes on multi-channel management, meaning that e-retailing site will be accessible over the Web, through specialized interfaces on Blackberries and PDAs, and also will have telephone ordering as well. The second objective is to create a completely integrated e-retailing system that connects to pricing, catalogs of shoe components, suppliers to validate the shoes being designed can be built, and shoe costs to ensure when compared to pricing the can be produced at a profit. This back-end system integration needs to be real-time as it allows for greater levels of responsiveness to the customer has a result. The third objective…… [Read More]
Nike and Puma are two of the major competitors in the international athletic footwear and apparel industry. Nike was founded in 1964 and is based in Beaverton, Oregon, a Portland suburb. Puma was founded in 1924 and is based in Herzogenaurach, a small town near Nuremburg in the Franconia region of Bavaria. Puma was founded by two brothers, but they later split and one would form Adidas. Both companies operate internationally, with roughly the same business model of overseas production and marketing-driven sales. Nike makes more extensive use of celebrity endorsements, but Puma sponsors many sports teams as well. Nike has 34,000 employees while Puma has 9500 employees. Nike is the larger of the two companies. Nike has revenue of $20.8 billion and net income of $2.13 billion. Puma has revenue of €2.7 and net income of €202 million.
Slide Two: Both firms have faced ethical challenges, primarily…… [Read More]
Stephon Marbury's pricing strategy to endorse a signature sneaker for $0.98 only demonstrates his objective for his brand to become the "cost leader" among sneaker products in the market. As a cost leader, Marbury's sneaker brand aims to appeal to a broader set of markets, offering them a sneaker collection that is similar to style, design and function as other leading brands in the market -- only, Marbury's sneaker collection, Starbury, is sold at a cheaper price than these leading brands.
The Starbury brand's positioning in the market reflects its pricing strategy. It appeals to a broader consumer group, which means Marbury's sneakers target a broad range of consumer groups. Starbury's customers range from young adults to adults. In addition, the inclusion of a clothing apparel line shows that the brand tries to be a 'lifestyle' brand to its target markets. As a result of its broad scope…… [Read More]
viable marketing plan for the footwear giant, Nike. The plan has been adequately substantiated with thorough research on different factors affecting the firm along with various ways of addressing future challenges. This research paper highlights that Nike is confronted with multifarious issues which need to be negotiated amicably. Result of the study concludes that there is still a world waiting for the Nike to be exploited, outsmarting its competitors employing its innovative and creative business strategy.
MINI usiness / MARKETING PLAN -- NIKE, INC.
In 1962, two individuals from the University of Oregon established a small company with the name of lue Ribbon Sports (RS). In 1972, the company was renamed to Nike, the name adopted from the Greek goddess of victory. At present, Nike owns facilities in Oregon, Tennessee, North Carolina and The Netherlands. It also operates leased facilities for 15 Nike-towns, over 80 Nike Factory Stores,…… [Read More]
Decathlon needs to determine a social media strategy. The company has lagged in its growth since entering China, and faces intense competition. However, technological and social changes in Chinese society have provided an excellent opportunity for the company in China. Decathlon needs to determine where social media fits into its total marketing strategy, and from there it needs to determine what it needs to do to make its social media strategy a success.
The decision at hand is how to best utilize social media. There are two components to this issue, the first being to determine a strategy and the second to determine appropriate metrics. The company needs to determine what forms of social media it will use, how it will use them, and what it can expect from them.
Before making a decision about the social media marketing, Decathlon needs to understand its…… [Read More]
Under Armour is a worldwide company that produces performance sports apparel. In an environment where people are always looking for the "latest and greatest," a company with a high-tech and unique product can certainly flourish. In the world of athletics there is a desire for quality products that improve performance. Additionally, local and younger athletes look towards professional athletes to set the trend as far sports apparel, equipment and accessories are concerned. The technology used in the Under Armour products is new, and has potential to change for the better as technology changes. A wide range of athletes are looking for this type of performance gear, so products need be either very specialized or appeal to multiple demographics. There is a huge market not only in the United States, but in all parts of the world where an emphasis on athletics is prevalent. While these products are not traditionally…… [Read More]
economically impressive history, ike has proven both the potential enormity of the athletic apparel industry and the effectiveness of a good logo. That, and an empire of merchandise, celebrity endorsement and university and sports organization contracts have made CEO Phil Knight's shoe manufacturing conglomerate the top producer and retailer of athletic wear. And while the increasingly disseminated effects of economic globalization have made ike a consumer entity in some one-hundred and fifty countries, the prickliness of the issues inherent therein have been a considerable nettle in ike's insole these most recent years. Allegations of ike's illicit labor and production processes abroad have been a considerable help to the shoe company's closest competitors, and ike continues to take a public beating over the issue even now.
In 1998, as human rights activists and anti-globalization protestors took hold of the ike issue, Knight's perennial industry frontrunner became the leading target in efforts…… [Read More]
business world, many strategies have been devised to gain and retain customers. Phenomena such as globalization, market saturation, and better information technology have driven strategies such as customer awareness and long-term customer relationships to be favored above relatively short-term strategies to gain new customers, such as product price and quality (Kinuthai et al., 2012, p. 223). Indeed, creating brand loyalty in order to retain customers in the long-term has played a key role in long-term business success. To accomplish this, brands such as those operating within sportswear have emphasized strategies to appeal to consumers responding to products at the individual level. As such, customer loyalty is a significant determinant in the amount of product being bought and the frequency of repeat purchases.
On the basis of this, the dissertation will aim to examine brand loyalty among the youth of a developing country (Kenya) as compared to the same phenomenon in…… [Read More]
The significance of rebranding in a stiffly competitive environment cannot be overemphasized. Organizations often undergo a change in logo, product line, packaging, advertising and other aspects of marketing with the aim of differentiating themselves from competitors, restoring image, and regaining lost market share (Khaund, 2014). Rebranding may also be informed by the need to adapt to change and remain relevant as well as reflect a shift in business strategy, focus, and target market. Reebok, a multinational fitness and sportswear company, recently underwent rebranding to reflect its shift of focus to the fitness industry. Focusing on the company, this paper describes the previous image as a brand, the reason for rebranding, as well as the rebranding undertaken and its effectiveness.
Founded in the 1 ate 1890s, Reebok is one of the largest sportswear companies in the world. With its headquarters in Canton, Massachusetts, the company designs, manufactures, and markets sportswear and…… [Read More]
Why do you feel this is a good statement? You may pick any company.
A good positioning statement is important, because it helps you and your customers narrow down your target market, your specific product and service and why it is better than your competitor. It is important for your positioning statement to be unique, so it is easily remembered and makes you stand out among competitors. It should also be believable and make a claim that is valid, as you want it to bring in customers, but also keep customers returning to buy more of your products.
Taco Bell has a perfect and simple positioning statement "think outside the bun." In this short statement, it gives an idea of the products sold and indicates why it is better than the competitor. With all the fast food restaurants throughout the country, Taco Bell is easily able to stand out, because…… [Read More]
For any strategic planning activity to be effective there must be the ability to quickly define process-level changes to increase competitive advantage. Mintzberg's critique of the strategic planning process is illustrated in the shortcomings of the Ashoff Matrix in this regard.
Lack of strategic prioritization of projects within the context of the Ansoff Matrix - the Ansoff Matrix does not provide for strategic criteria to be applied to specific projects. The portfolio management approach to strategic planning specifically has been developed to respond to the shortcomings of the Ansoff Matrix and other analytical constructs like it. Portfolio management is in fact the basis for Boston Consulting Groups' Growth/Share Matrix, or as it is commonly referred to, the BCG Matrix.
Lack of quantification of cash generation and modeling of future financial performance - the shortcomings of the Ansoff Matrix as a strategic tool relative to the needs of strategists, specifically at…… [Read More]
K-Swiss Inc. Allocated Costs
K-Swiss has operations on numerous continents with multi-level departmental responsibilities for product and brand management. K-Swiss (2010) divisions create and manage product and thus acquire allocated costs associated with the manufacture and sale. "Adidas and eebok -- and to a lesser extent New Balance and K-Swiss saw big increases in orders from Foot Locker, Adidas, eebok and K-Swiss all report robust sales and big increases in their Foot Locker business..." (etail Top 100, 2003)
As such, these divisions facilitate orders to retail outlets for sale of product. The K-Swiss sneaker division, for example, has an allocated cost for materials, machinery, technology, and labor necessary to manufacture a set number of sneakers. Under many circumstances, these variables are simply called capital and labor. However, for the purposes of cost allocation at the departmental level, the importance of describing the specifics of the cost structure is critical to…… [Read More]
Operations Evaluation of Nike Incorporated
Marketing Mix Price
Marketing Mix Place
Factories Based on Region and Product
Current Situation of Footwear Industry
Marketing Mix Product
Nike Current Situation
Marketing Mix Promotion
Changes in Operations orkers at Factories
Code of Conduct Grade Assessment
Operations Evaluation of Nike Incorporated
Understanding how globalization affects a company will be analyzed to explore how Nike Incorporated handles the multiple risks and capitalizes on the benefits of such expansion. As Nike has faced immense growth and criticism due to the complex business model that has led to the number one position in the athletic footwear industry. It has been a challenge to balance strong organizational performance along with required corporate ethical standards expected for a global leader. A critical evaluation of Nike Inc. will…… [Read More]
Lululemon Firm Activities
elevance of Strategies in Firm Activities.
Strategic Firm Activities at Lululemon
Strategic Firm Activities at Lululemon
In establishing and concretizing business operations in a market, it is vital to lay down the necessary strategies to determine the level of diversification of the products produced, their affordability and availability to customers. Some of these strategies worked upon are the corporate level, international, strategic alliance and cooperative strategies. The establishment of Lululemon Company has been at the limelight in addressing these strategies in compliance to its industrial trends and in addressing its comparative and capability gaps. The company has enjoyed exponential revenue rates and vantages towards its market. Considerable micro and macro environments have contributed to the progress of the company.
Corporate level strategy is responsible for defining the market unto which a business stands. It is a business-level strategy that overlooks the functionality of a company.…… [Read More]
medium sized company, Sportzshoo plc makes a range shoes sports. The company founded privately owned Steve Scott, entrepreneur Olympic gold medalist.
Types of marketing information needed by Sportzshoo
There are various types of marketing information that Sportzshoo PLC will need in order to succeed. It is important for the company to understand the procedures that are needed to gather, sort, evaluate, analyze and distribute the marketing information in order to ensure that marketers have accurate and timely information for their decision making. There are three major types of marketing information that the company needs in order to succeed. These are recurrent information, monitoring information and research or requested information Shepherd, Food, & Agriculture Organization of the United Nations, 1997()
This refers to information that is collected on a regular basis regarding the performance of the organization such as market share, sales volumes, product awareness, brand awareness,…… [Read More]
Product Placement in Console Games
A growing body of research confirms that one of the best ways to reach male consumers aged 18 to 34 years is to place products in console games. Originally, game developers paid advertisers to include their products in games to lend them authenticity and realism, but advertisers are now paying game developers to have their products placed in popular console games. The introduction of online gaming series has created additional opportunities for product placement and current trends indicate that advertisers will be exploiting this marketing tool even more in the future. This paper provides a review of the relevant peer-reviewed and scholarly literature concerning product placement in console games, followed by a summary of the research and important findings in the conclusion.
eview and Discussion
The introduction of video games such as "Pong" as home entertainment systems more than 30 years ago created an entire…… [Read More]
Chinese Manufacturing Industry
The social group that I choose to analyze is the population involved with the Chinese manufacturing industry. I choose this particular group is because of three reasons. The first reason is China's economic develop is growing rapidly relative to the rest of the world. Another interesting fact is that compared with other countries, Chinese labor is much cheaper yet there is still a high skill level. Because of these factors, a large number of products are exported every year and some people have called China "factory of the world." The final reason is personal and it is because I am a Chinese, I have an intimate knowledge with China, and my family is also currently engaged in the manufacturing industry. I have access to information about the environment, economics, and politics that has led to the number of manufacturing companies in China that is currently…… [Read More]
Nike was founded in 1964 as Blue Ribbon Sports, and became Nike in 1971, by Bill Bowerman and Phil Knight, the latter going on to become the company’s long-serving CEO (O’Reilly, 2014). Today, Nike describes its business in the 2018 10-K as “the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services” (p.55). In addition to the eponymous brand, Nike markets Converse, Hurley, and entire Jordan brand, and others. Nike’s revenues in 2018 were $36.397 billion, up nearly 6% from the year previous. Net income was $1.933 but this was down significantly from the prior year, as the company recorded a much higher income tax expense.
Nike competes in the sports apparel industry, which is estimated to be worth around $184.6 billion worldwide, meaning that Nike holds about a 19.7% share. The industry is mature but still growing, with a CAGR of 4.3% over…… [Read More]
Media outreach is significant to create awareness, which the founder and his staff has done by managing a Facebook account, blog, and twitter page. In particular, the site's blog creates a more in-depth description about products and on-going games. The posts are complemented with stunning visual pictures, videos, details about teams and their players. However, media broadcasting goes further by being connected to YouTube, Foursquare, and Flickr. The workings and maintenance of a business online can be improved by acknowledging the experience of consumers. As a result, Rei permits product reviews, testimonials and an email to contact the company. Patrons and companies live in an age of advocacy, where a positive experience can create more business for a company like Rei's, while an opposite account may result in abysmal failure. Thus, the connections made on Digg and Stumbleupon can foster the former or latter relationships.
The commodities relating to soccer…… [Read More]
This can be translated as a reaction to the issue of globalization.
Finally, soccer represents a series of common values. The ad campaigns promoted by major sports endorsements have transformed the game from a lawn practice to a global affair. Indeed, companies such a Nike and Adidas, the symbols of American street culture are no longer prevented from offering sponsorship deals to the Chinese teams, especially given the fact that such companies are strong supporters of the Chinese and Indian economies, with factories and subsidiaries all over the world.
On the other hand, Appiah discusses the idea of globalization from a philosophical point-of-view. Thus he argues that there is a strong relationship between individuality as seen in the works of ancient philosophers and in those of Mill and the social structure that we are today (Appiah, 2007). More precisely, he does not consider a clash between individuality and our social…… [Read More]
Week 6. China's Democratisation: Implications for International elations
Is it a fantasy to expect China's democratization through trade and engagement with the West?
It is rather difficult to consider trade as being a democratization tool. Indeed at the moment, political affairs and economic affairs are connected and interdependent. However, China represents a totally different political system and is one of the most important actors on the global economic scene.
The East -- West confrontation represented in the beginning an ideological confrontation between what communist and capitalism stood for in terms of human rights, economic practices, but most importantly political views. During the Cold War, the bipolar system of the world refused to accept any ties, other than symbolic UN -- type of communications between the two poles. Still the U.S., especially during the period of President Nixon reestablished ties with communist China, regardless of its ideological differences. This comes to…… [Read More]
The company's competitive positioning through brand equity can be seen in the variety of specialized out-door gears and clothing which is offered for any sex, age, and activity type. The fact that REI is very environment oriented and emphasizes on this fact in its advertisement and catalogs very much can also be seen as a major advantage, since its customers are the real out-door enthusiast which see the environment as a main part of their lives. Also the company offers travel services around the globe for its members and customers which increases the brand awareness for its products.
Major competitors to REI are companies such as L.L. Bean Inc., Patagonia Inc., and the Sports Authority Inc. The competitive factors for REI are the way their mission statement holds true to this day: "e inspire, educate and outfit for a lifetime of outdoor adventure and stewardship." Furthermore, the way the company…… [Read More]
All these issues point out to the indubitable fact that the human resource in Taiwan is coming closer to the labor force in the highly developed western economies and that additional efforts will have to be made in order to succeed in the island.
Another human resource issue that is important to be mentioned is given by the different cultural values of Taiwan and the American multinational. Divided by language, religion and customs barriers, Taiwan is closer to the Japanese culture than the American one. This will unavoidably mean that our organization has to hire several human resource specialists to make a transition from the Japanese H issues to the U.S. implementation of human resource policies. Some other issues that have to be understood by our company refer to the decision making process, which is generally done in groups; a decision once made is supported by all individuals, regardless of…… [Read More]
In conjunction with these car ads, car insurance companies took advantage of this by advertising their services as well. Car insurance companies that I noticed advertising through billboards were Safeco, Progressive, and All State. Progressive provided a catchy and positive note to its ad by having the slogan, "Happy drivers make good drivers." From what I can recall in the All State ad, it mentioned something about safe driving, again with a catchy phrase: "Safe driving bonus for not driving like a paparazzi." These car insurance ads, particularly for Progressive and All State, tackle issues relevant to motorists, their target market: both chose to discuss driving behavior, using different ad 'treatments.' Progressive addressed reckless/irresponsible driving by focusing on the ideal driving behavior and its positive outcome, that is, drivers must have a happy temperament in order to be a good driver. All State, meanwhile, chose to go the opposite route…… [Read More]
Another strength is product development. Billabong must continue to fill stores with new, innovative product that shows leadership in the field. This can come from in-house development or from the purchase of smaller brands. The brand equity of Billabong also comes into play with respect to their reputation. They must be able to maintain their reputation, which can be done in part by retaining some credibility within the surfing community. This will require the ongoing development of products specific to that market, as opposed to just general athletic apparel.
Classification of other Competitors
There are two types of competitors that Billabong faces. In the surfwear segment, the company typically faces competition that operates a focus strategy - differentiation. These firms are more focused than Billabong, being specifically surfwear firms. The other type of competitor is the differentiation strategy and the low-cost strategy. Billabong faces this as a result of their…… [Read More]
Nike, for example, operates in approximately 150 countries around the world. Also, there is room for brand and line extension. This leverages core brands and competencies to move into similar business. In recent years, Nike has built its Hurley and Cole Haan lines in recent years using their manufacturing and distribution competencies, and Reebok has expanded its core brand into ice hockey.
There are many threats to the industry, however. First, the slowing in the U.S. market has resulted in an increase in competition as growth prospects slow for the key firms. The industry is also subject to economic slowdown, especially the top firms, who generally operate with a premium pricing strategy. As most firms in the industry operate with a model featuring global procurement, they are at risk to increases in transportation costs, which cut into their margins.
Another risk is intellectual property rights violations. Two of the key…… [Read More]
5% of total liabilities. Their retained earnings, on the other hand, total $5.073 billion. The heavy use of retained earnings is partially explained by their view of themselves as a growth company. hile they pay a dividend, Nike prefers to re-invest much of its profits back into expansion. They do not feel that the market has matured sufficiently to stop their aggressive growth strategy. Another consideration in their capital structure is the cost of capital. On account of its low volatility, Nike has a low cost of debt, approximately 6.8% using CAPM. Their long-term debt is primarily a revolving credit facility. The rate, based on their a+ rating, is LIBOR + 0.15%, which would equate to 4.12% based on the October 15th price of the 1-year LIBOR. If anything, Nike could become more financially efficient by increasing their use of debt financing.
Nike places strong emphasis on human resources. They…… [Read More]
ROA % (Net)
ROE % (Net)
ROI % (Operating)
EBITDA Margin %
alculated Tax Rate %
EBT… [Read More]
A major problem encountered by the company that sent most of its work abroad is that of controlling the operations undergone within foreign countries. "At the Canton headquarters of Reebok, Gregg Nebel tries to keep tabs on the foreign factories that churn out his company's products. Nebel's team is working with officials in Mexico to make sure suppliers there are meeting Reebok's standards for fair wages and worker safety. He says his job gets harder each day, because Reebok and its parent company Adidas rely on foreign manufacturers more than ever" (Nickisch, 2008). A crucial issue in this instance is given by additional expenditure. For example, the company had to settle a lawsuit for the death of a four-year-old with one million dollars, and this raises the question whether the money saved are efficiently spent.
Through a generalization of their operations and practices, it can easily be observed that the…… [Read More]
WorldCom (CEO Bernard Ebbers) supported by years of profitability arising from the deregulation of phone companies was a fast moving stock that was highly toted by stock specialists as a must buy, even while it was seriously hemorrhaging from bad and fraudulent business deals and its own shoddy accounting, cover ups and bad investment deals.
WorldCom quickly supplanted at&T as the favorite of many investors, based heavily on Grubman's recommendations. The investment world quickly sang WorldCom's praises as a result. A technology magazine, Network World, named it one of the ten most powerful companies, behind only Cisco and Microsoft. After listing its virtues, the magazine went on to conclude that, "MCI WorldCom will probably be a keeper on this list." 18 as for its investment virtues, Grubman claimed that it was a traditional "widows and orphans" stock, to be held for the long-term. Based partially upon his recommendations, Fortune listed…… [Read More]
being specific. In addition, the use of advertising and sales promotion also is used on products that are quickly purchased yet have a high level of customer loyalty associated with them. All of these conditions would favor using an advertising and sales promotion driven approach over a personal selling one. Examples of products in this category include soft drinks, groceries of all types, and low-end consumer electronics that are purchased quickly based on brand loyalty over intensive analysis. In general, products that have lower margins and are highly commoditized are those that are sold through this approach. Personal selling on the other hand is very expensive as a sales strategy are often is used in situations where the sales cycles are longer as customers evaluate options more thoroughly, and where the products being sold are much higher in price. The greater the price of a product, the less commoditized it…… [Read More]
This kind of competition can prove to be more effective than governmental regulations since firms are reluctant to follow government mandates.
Secondary research has been used as the main tool. Important journal articles, case studies and analyses have been included to understand the concept of CS and its use in gain competitive advantage.
ANALYSIS and DISCUSSION
Social responsibility is closely connected with concern for financial growth. According to this belief, firms seek to maximize their profits by investing in a healthy environment and other public good projects. The firms that have successfully attained the prestigious image of being socially responsible follow this ideology. These firms choose to be more socially conscious not because of any real intention of creating a healthier society but because their actions seem to influence buyer behavior in a positive manner. Companies are thus rapidly developing serious CS policies with exclusive departments dealing with this.…… [Read More]
3. Limitation of individual model - synergies obtained by combining strategic analyses models
All analysis models presented in the previous chapter represent useful but not exhaustive methods of deciding the future of a company or its products.
As there is no perfect model, the joint usage of them might bring most value to the company.
Ansoff analysis generally assumes that diversification will bring higher returns when higher levels of risks are undertaken (diversifying the market and/or the product), should not be practically used by itself, as it does not say anything about a company's capacity of venturing in new markets or sustaining the development of new products, as it also does not say anything about the acceptance of the new product on the existent market and/or of the existent products on new markets.
Therefore, other analysis that will take into consideration both internal and external variables of a company (like…… [Read More]
12). Six weeks after that public relations disaster for RC2 Toys, other toy company, Fisher-Price, was obliged to recall "nearly 1 million of its most popular character toys, also because of lead paint," Field continues. Not long after those embarrassing recalls, Mattel and Fisher-Price announced "three more recalls from China" (Field, 12).
When an adult item is recalled, it doesn't make as big a negative splash as when items for children are recalled, so the toy industry was truly rocked by these events. One can also factor in the American economic downturn at the time of these above-mentioned recalls; that is, when people are out of work by the millions, and many are having their homes foreclosed, to have one's hard-earned dollars spend on a product that might sicken family members is doubly impactful on the negative side of the ledger.
Field explains that the recalls have had a "far-reaching…… [Read More]