Adidas Case
Adidas CaseAnswer to question 1:The Adidas applies the diversification strategy.  Adidas produces sports products for most games such as football, running, training, soccer, and basketball.  Adidas’s strategy involves having two separate departments that each department deals with specific functions.  The sports group consists of 80 percent of the sales that is the main function of Adidas.  This group is important because it operates with concerns towards other departments within the company.  The sports segment deals with the production of most of accessories for most of the games, and the distribution of these products.  These products are used in these games which means Adidas must pay attention to the quality of its products.  The other concern is the style of the game and the selection of the products.  Adidas concerns with the professional styles, and casual styles.  Adidas wants to make the casual selections appear as a high selection and be fashionable selections as well by joining the two products.  Moreover, Adidas also started expanding into other countries such Spain, Italia, China.
Even though Adidas started expanding into other countries, it has a problem of not controlling these expansions.  This issue will affect the company’s efficiency.  Adidas also has an issue that is specialization; they do not have enough specialty in making some products.  As a result, Adidas tries to solve the issue by limiting the functions and separating their functions.  Answer to question 2:In 2008, Adidas’s strategy starts to show its positive results.  The results were not expected to Adidas because the sales were 14 percent. These expectations for Adidas grow because of the expansion of its retailers and the wide selections they have.  This gives a competitive advantage to Adidas; this advantage is the attractiveness of their products.  The level of competition in the sports industry is very high because the attractiveness of the revenue it generates.  However, In 2008, the company Reebok declined in the market.  This issue also affected the company’s position in the market.  Their sales grew only by 2 percent.