Description of the Organization
The organization selected for this report is Adidas. Adidas is one of the leading companies operating within the clothing, shoes, and accessories industry. The company, founded in 1949, has grown towards becoming one of the leading players in the market with a revenue base of approximately €21.218 billion and 56,888 worldwide. The company has been on the forefront towards adoption of technology as a key tool that would be of value towards ensuring that it creates what would be considered as competitive advantage (Aubert, Saunders, Wiener, Denk, & Wolfermann, 2016). The idea of using technology has also helped towards positioning Adidas’ sustainability curve with the focus being towards building a positive front for its success.
How Technology has Influenced Change
In the case of Adidas, technology has influenced change in the area of supply chain management with the focus being towards ensuring that the company builds on its capacity to minimize risks in supply chain. According to Fu (2017), the decision by Adidas Group to invest in technology as part of its supply chain has been of great value towards ensuring that the company is able to deliver products within the set timeline. Additionally, this has also helped towards ensuring that the company is able to source for raw materials effectively as a way of ensuring that it meets its demands within the consumer markets. McPherson & Alsuwaida (2015) also reflect on the fact that Adidas has been able to use 3D digital technology to its advantage especially when trying to showcase some of its products within the international market. The 3D digital technology ensures that the company is able to create virtual images that would be displayed within different locations as part of its approach towards marketing its products.
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How the Global Marketplace has Influenced Change
On the other hand, it is important to take note of the fact that the global marketplace has influenced change within Adidas Group in several ways, which are important to consider in a bid to understanding the company’s approach to global business performance. Firstly, the global marketplace has influenced the need for the company to engage in research and development as a key measure towards building its competitive advantage. Singh (2017) points out that the shoes and clothing industries are changing at a rapid rate, which has forced companies such as Adidas to focus much of their efforts on engaging in research and development. The expected outcome of this is that the company would be in a better position from which to reflect on a proactive avenue from which to match set demands among its customers around the world.
Plan
The first plan for the company ought to be ensuring that it works on introducing its products into new markets such as Asia and Africa among others. In this plan, the company may focus on opening new locations within the different markets with the sole focus being towards tapping into the new markets, thus, building its market share.
The second plan would be working towards reducing its operating costs. Anh Vũ̃, Shi, & Hanby (2009) recommend the idea of having to focus on outsourcing production of its products within regions such as China with an aim of reducing its operating costs significantly. In this plan, the head of production would be responsible for having to determine the viability of different markets, which would determine the overall effectiveness of adopting the plan.
The third plan for the company may focus on marketing and advertisement. Marketing and advertisement act as key elements that determine the overall level of success for companies taking into account that it paves the way for better performance in the markets. In the case of Adidas, adoption of new marketing campaigns may be of great value towards builds its capacity to deliver positive results as part of projecting that prospective avenue for effective performance in the consumer markets.
References
Anh Vũ̃, D., Shi, Y., & Hanby, T. (2009). Strategic framework for brand integration in horizontal mergers and acquisitions. Journal of Technology Management in China , 4 (1), 26-52.
Aubert, B. A., Saunders, C., Wiener, M., Denk, R., & Wolfermann, T. (2016). How adidas Realized Benefits from a Contrary IT Multisourcing Strategy. MIS Quarterly Executive , 15 (3), 179-194.
Fu, E. (2017). 90. A Study on Overall Framework of Brand Marketing Strategy of Large and Medium-sized Enterprises in the Context of New Media. Revista de la Facultad de Ingeniería , 32 (14).
McPherson, J., & Alsuwaida, A. (2015). Applying Five Forces in the Competitive Advantage of 3D Printing Technology in the Footwear Industry.
Singh, K. (2017). A study to explore methods for communicating secondary story in Adidas core format stores . NIFT-Mumbai.
