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Value Chain Analysis & VRIO

Adidas has distribution centers in Germany for efficient inbound logistics. They are shifting to improved distribution networks for quicker customer service. In 2015, Adidas opened Speedfactory in Germany using smart manufacturing for decentralized production. Outbound logistics sees Adidas distributing worldwide, with 97% of footwear made in Asia, especially Vietnam, China, and Indonesia due to low costs. Marketing focuses on athletes and fitness enthusiasts through social media influencers. HR practices aim to satisfy employees and keep them close to customers. Adidas adapts technology like digital marketing to engage their customer base.

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2K views

Value Chain Analysis & VRIO

Adidas has distribution centers in Germany for efficient inbound logistics. They are shifting to improved distribution networks for quicker customer service. In 2015, Adidas opened Speedfactory in Germany using smart manufacturing for decentralized production. Outbound logistics sees Adidas distributing worldwide, with 97% of footwear made in Asia, especially Vietnam, China, and Indonesia due to low costs. Marketing focuses on athletes and fitness enthusiasts through social media influencers. HR practices aim to satisfy employees and keep them close to customers. Adidas adapts technology like digital marketing to engage their customer base.

Uploaded by

aaiza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Adidas

Value Chain Analysis :

Inbound logistics:
Adidas as a leading global sportswear brand has distribution centers locally in Germany to
increase efficiency in the supply chain. Adidas is however shifting to more improved methods of
distribution networks that can help them stay ahead of the competition and provide quick and
efficient service to their customers. Adidas built ‘Speedfactory’ in Germany in the year 2015
where smart manufacturing technology was used to decentralize production and make the
connection between the product and the customer easier and quicker. Smart production can lead
to quicker distribution and eliminate high costs associated with traditional logistics practices.

Outbound logistics:
Adidas has a large distribution network in Europe and worldwide. As a leading competitor of the
sports brand Nike, Adidas has expanded from inbound logistics to worldwide sourcing and the
establishment of factories in different parts of the world. According to a statistical source, a
huge portion of their footwear is made in different parts of Asia, about 97% and the remaining
3% is made in Europe, and the Americas. Vietnam, China, Indonesia are the largest producers of
Adidas footwear in Asia, with China being the major apparel supplier about 23% of total overall
apparel production. Asia contains the highest percentage of suppliers due to the low-cost
manufacturing options and cheap raw materials.

Marketing and sales :


As a popular sports and athletic wear brand, Adidas markets to fitness enthusiasts, athletes, and
to every consumer in general. Mostly, Adidas focuses its marketing strategy on athletes and
fitness enthusiasts because they constitute their highest number of overall sales. As popularity for
the brand is continuing to increase on social media, influencers who promote the brand and their
followers are becoming more interested in Adidas products.

HR management:
Adidas positions itself as a consumer and people-centric brand, who are always taking care of the
needs of their employees and making sure that their people strategy is the best. They believe that
their employee’s feedback and satisfaction is what keeps them close to their customers’ minds
and therefore is an integral part of their company culture. Adidas carries this philosophy into
their HR practices.

Firm Infrastructure:
Adidas’ business model and strategy is based on keeping up with sports trends, fashion trends,
reaching to different customer segments and even seeing how their business philosophy fits into
people’s needs.

Tech development:
Adidas as a company and a brand has a great relationship when it comes to adapting and using
technology to spread brand awareness and keep up with their customer base. The company has
resorted highly to digital marketing and media to promote their specific products/collections,
collaborate with influencers, celebrities to keep with today’s modern consumer base.

Procurement :

Adidas procures its raw materials from different parts of the world. They have a very efficient
production and supply chain across different networks that help them operate efficiently. Raw
materials such as facrib is procured from Asian countries mostly due to low cost and labour.

VRIO Analysis :

Value :
● Adidas is known as a valuable brand because it offers customers quality products, is
environemntally conscious and has a competitive advantage of using digital technology
to market to its huge customer base.
Rare :
● Adidas has a competive advantage in being the favourite sportswear brand for most
young customers, as well as an effective and fast supply chain management.

Imitable:
● Adidas’ company culture, high quality products and increased recognition on social
media platforms is hard to imitate.
Organziation :
● Adidas has a sustainability as its competitive advantage, for instance, the brand creates
footwear from ocean recycled plastic. It also has a massively organized management
framework as a company and brand.
References :

https://notesmatic.com/supply-chain-management-at-adidas/
https://www.marketing91.com/marketing-strategy-of-adidas/
https://report.adidas-group.com/2019/en/group-management-report-our-company/people-and-cul
ture/people-strategy.html

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