FinalIndividualResearchPaper.docx - Natalie Henke Strategic...

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Natalie Henke Strategic Management 09/12/2020 Individual Research Paper Abstract Covid-19 poses an external threat to nearly every company’s supply chain. The global sportswear industry felt this pressure rise from January to June of 2020. Yet, the growth strategies continue to develop and unfold for certain well-positioned competitors. Adidas retains a global commitment to improving athletes’ performance, despite the recent decline in economic activity. Each strategic action furthers this mission and is periodically evaluated to ensure it continues to serve its intended purpose. The needs and values of the targeted consumer are assessed through the utilization of a balanced scorecard and thorough market research. A particular demonstration of this is the firm’s digital marketing strategy; the strategy was developed to promote direct customer relations, catalyze innovation and collaborations, and streamline communication. As the “cancel culture” continues to govern society’s perceptions, the firm should ensure that this competitive advantage does not become its downfall in the midst of present movements and controversial presidential elections. The digital marketing strategy correlates with one of the six key success factors identified for the sportswear industry: community-based marketing. The other five factors are product innovation, style, sustainability, e-commerce, and recognition. Although a positive result is favorable for each category, it is unrealistic to prioritize each and every factor which hints at market success. To assess whether the direct marketing strategy shares a direct relationship with revenue, the financial statement ratios for the past three years are calculated. Retaining a manageable reliance on debt and a promising return on the market price of stock, Adidas is outperforming Under Armour for the 2020 fiscal year. Introduction Customers may perceive widely marketed companies to be too large to fail; however, the economy knows this is a myth. The ability to adapt to changing economic and societal conditions is critical to remaining viable. The sportswear industry holistically has performed positively in recent years. The market has witnessed the entrance of rising competitors, varying in prices, value propositions, warranties, and overall mission. Among these competitors are Adidas, Nike, Lulu Lemon, and Under Armour. The ultimate goal for Adidas is to have a product that delivers high performance, but which is also made in a sustainable way. To communicate this guiding principle, Adi Dassler, the founder of Adidas, deployed a five-year digital marketing strategy in 2015 to emphasize effectiveness over efficiency. With innovation at its heart, the company generated media with the community, famous athletes, and renowned celebrities to rebrand itself as a digital company. Considering the suspension of many professional sporting events, Covid-19 has influenced some competitors’ commitment to the strategy. This is not the case for Adidas. Adidas straightforward digital marketing strategy has been the proven power behind its steady success. The

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