ADIDAS VALUE CHAIN ANALYSIS

ADIDAS VALUE CHAIN ANALYSIS

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The brand name of Adidas Group is a combination of the name of the founder and the company name, and is structured in three main divisions, which entail the Adidas sport performance, heritage, and sport style. For years, Adidas Group maintains its trademark as the major producer of sport products such as shoes, apparel and accessories globally. According to Porter, value chain analysis denotes all the undertakings that increase value to the organizational amenities and products. Such activities must be operated at an optimum level for Adidas Group to surpass the cost of operation, for instance, clients should return to the company and willingly and freely do some transactions, (Porter, 1985). This is essential in maintaining a competitive edge over competitors and ensuring that Adidas Group remains the leader in technological advancement in the field in which it operates. In this regard, Porter assets that a company is divided into primary and support activities that are crucial in maintaining market position.

The value chain analysis of Adidas strongly borrows from Michael Porter’s perspective in that the company strongly maintains its primary activities since its beginning. For instance, the inbound and outbound logistics are increasingly strongly in the company and this ensures that it operates optimally in the current environment. Adidas Group has certain inbound logistics chain for raw material movement as well as un assembled products inside the organization. Further, the outbound systems logistics for finished products transportation is effective and timely. The main operations, sales, marketing, and related operations are increasingly strong and this has pushed the company to be the main sport industry in the sector. The team of researchers responsible for new and innovative product development and shifting market demands has been increasingly sustainable, and has assisted Adidas to maintain its position in the market and attain competitive advantage, (Nieman & Bennett, 2006). Adidas Group has introduced electronic sales, and continued to dominate the strategic marketing in e-sales. The company monitors service quality, staff training, and satisfaction of customers through the franchisees as a crucial aspect of value chain.

Additionally, the supporting activities of Adidas Group, which includes procurements, research, human resource management and development as well as development of the company’s infrastructure and is well operated to ensure strong reputation of the company, value of the brand and status of market. Adidas mainly emphasize on materials procu.............