Topic: BusinessCase Study

Last updated: August 10, 2019

Where would you place the strategies of Adidas perspective or emergent?The strategy deployed by Adidas I emergent approach. From the case study, the final objective of the company is unclear and its objectives are developed during the course of its life, as the strategy proceeds. The company has recognized the turbulent and the unpredictable nature of the external environment.

Through the help of the PESTEL analysis, it is possible to demonstrate the reasons why the strategy deployed by Adidas is emergent. The tool helps to analyze how the environment surrounding Adidas affects its operations. PESTEL AnalysisPolitical FactorsPolitical stability is crucial for the success of any company. Over the years, Adidas has faced many risks and civil unrest and tremendous changes in trade policies. Therefore, the company has been forced to make some of adjustments in its operations to avoid huge losses in places with high political instability. For instance, the company in several occasions monitors the government’s law in the countries it operates since the political arena in a nation affects the public and private sectors, and the spending power of consumers. Moreover, in the countries the company operates, it is required to follow some specific labor laws to ensure it protects the rights of its employees. Thus, sometimes Adidas operations are affected by the political environment within the country it operates.

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Economic FactorsAdidas is a multinational company that helps many countries to decrease the level of unemployment as every year it increases the number of its staffs. The continual growth of the company has seen it sponsor major world events such as Olympic Games. The company sells a well-respected medium range product, and as a result, it is less vulnerable to economic factors than its competitors. Besides, the company established a production plant in Asia to reduce its production costs. However, the lack of its diversification is dangerous as the market collapse for the sport products would result in the downfall of the company.Social FactorsAdidas does not face any barriers for its products because of its consumer’s race, age, religion, and lifestyle.

The company mainly targets individuals who like sports and the health conscious shoppers. Therefore, its products are often available for any age, gender or lifestyles. However, Adidas has been observant on how it can captures the attention of its target customers. For instance, its slogan, ‘impossible is nothing’ is a slogan that goes along with the youth. Today’s youth is characterized by individuals who exploits their potential and want to unfold the undiscovered.

Thus, Adidas uses brands which associates with its audience perfectly. Moreover, the company has come up with adverts that targets women who are more conscious of their figure. For example, in the Reebok’s adverts, Adidas claim that Reebok shoes and slip-ons enable the users to have a well-toned figure. Therefore, Adidas has tried to reach out to the social life of its consumers by coming up with brands and slogans that relates to the social life.Technological FactorsFor an organization to remain competitive in the current global market, it must possess unique technologies that distinguish it from other companies. Technological innovation speed up the production process, improve quality, and save time, energy and effort. Adidas has taken several technological advances to improve its services deliver to the consumers. For instance, the company has implemented a web-system that allow consumers to buy and order for Adidas products.

Besides, it has the smart ball that uses smart phones to operate with the ball data collection. Thus, continuous innovation and the use of technology has led to more sales and a larger disposable profit.Environmental FactorsOne of the Adidas policy controlling and monitoring hazardous substance to protect human health and environment. However, some of its mass production factories harm the environment through the release of plenty of aerial pollution.

Thus, Adidas is required to devise new environmental and sustainability programs to comply with the global environmental laws and regulations. Therefore, the company has established a team that monitors its production plants to ensure it comply with all environmental laws. Legal FactorsAdidas is controlled by several legal acts such as the Trade Description Act, press complaint, advertising standards authority and television commission.


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