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Strategic Analysis of organizations

Strategic Analysis of organizations

 Strategic Analysis of organizations



Strategic analysis is an examination of how an organization successfully operates its business by using appropriate resources within a certain period of time.

For better understating of this subject the reputed sports company, Adidas has been considered. It is a multinational corporation, which now ranks sixth amongst the world’s most valuable business organizations. The company manufactures sportswear and sports accessories and is renowned globally for its high quality products.

Competitor’s Analysis

Competitor analysis is an assessment tool used by the marketing and strategic management department of a company. It assesses the strength and weakness of both the potential and current competitors of the organisation (Competition Mapping and Market Analysis, 2018).  

As Adidas is a reputed international sports brand with a huge base of client following, it is obvious that every other company in the league aims to beat Adidas by increasing their competency. This also increases the market competition for the sports company.

The biggest competitor of Adidas is undoubtedly Nike. While Adidas is ranked 6th as the most valued company of its kind, Nike stands strong in the first position. Nike has significant lead in the collection of revenue with 32.4 billion American dollars in the annual sale during the fiscal year 2016-17. Adidas in the same fiscal year was able to collect revenue of 20.6 billion American dollars. Nike holds control over 33% of the market worldwide, which is a large lead over Adidas (Abtet al., 2017).

It is almost impossible to discuss the competitors of Adidas without mentioning Puma. If not for sibling rivalry, Adidas and Puma       would be operating as one large company. After the involvement of Puma with the founder of Adidas in a family feud, the former company has been able to overcome business turmoil and has surfaced as one of the most competent companies in the market (King et al., 2014).

Fila is one of the top most companies that manufactures sports footwear, and occupies a good market share. It has seen a large rate of growth in production along with cutting its prices, making it a proficient competitor for Adidas. The medium income earners of the society can easily reach for the products of Fila without having to burn a large hole in their pockets.

The rivals of Adidas follow strategies to place their product in the best place of the market. The competitors may focus on big sports events such as Wimbledon, FIFA Cup, NBA etc, by becoming the official sports sponsor of these events. Additionally, they also sponsor world famous athletic teams such as Manchester United, Real Madrid, Barcelona, etc, to grab the attention of large crowds and sports enthusiasts. Soccer teams have the maximum number of global viewers, which can also be used to boost the brand image and for promotion of the companies. Endorsement campaigns with famous athletes are also a vital strategy to enhance market consumption, by such companies 

Key factors that underpin competitive success

There are several key planning factors that contribute to the success of a company. For staying ahead of the competitors present in the industry, the company must implement the following factors with utmost sincerity.

·         Focus is one of the most important aspects while taking under a project with the purpose of reaching excellence. Without focus, there is absolutely no scope of improvement in any activity.

·         Market share is a planning force, which drives many other attributes in a business plan. The company and its competitors are in constant competition to reach the same targets. Hence, determination of features that will distinguish the company from other competitors in holding the market share is important.

·         Quality customer service is essential for keeping the customer satisfied. Providing them with convenient delivery of products, pleasant behaviour and exchange policies will lead to higher loyalty among the customers of the company. 

·         Product quality is the most crucial part of a successful business. Nobody will be willing to purchase products, which are of low quality, by spending a hefty amount of money on them. The real formula of captivating high demand in the market is ensuring that the quality of products is up to the mark.

Adidas is developing its product quality for higher success in the market. The company is known for its uncompromising policies on product qualities. It has further decided to increase its quality by incorporating new designs, better materials and improving the longevity of the goods. Adidas is developing product inspection sessions to ensure the standard of each of its products. It ensures that each product is checked and are operational when shipped. 

Analysis of the industry

Identifying the dominant economic features is essential for the purpose of analyzing the industry of a company and its competitive environment. 

Market size- The total number of companies or firms operating in an industry is referred to as market size. It is necessary to know whether the industry is growing, or is it in a static state or is it declining. The market size of Adidas is expanding in an increasing speed. Being a multinational company it operates in a large market.

Scope of rivalry- An important factor for the business organizations is to know the level of competition they face from competition rivalry. Having a knowledge about the future competition helps in strategic formation of a company’s business. The competitors of Adidas, such as Nike, Puma and Fila are constantly competing to hold its market position in the industry.


Reference List

Abt, J.M., 2017. The Impact of Necessity on Consumer Behavior. Temple University.

Camagni, R., 2017. Technological change, uncertainty and innovation networks: towards a dynamic theory of economic space. In Seminal Studies in Regional and Urban Economics(pp. 65-92). Springer, Cham.

Epstein, M.J. and Buhovac, A.R., 2014. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.

Hartley, J., 2017. From the Consciousness Industry to the Creative Industries Consumer-created Content, Social Network Markets and the Growth of Knowledge. In The uses of digital literacy (pp. 49-80). Routledge.

Holtbrügge, D. and Schuster, T., 2017. The Internationalization Strategy of Adidas. The Internationalization of Firms: Case Studies from the Nürnberg Metropolitan Region, p.19.

King, D.R., 2014. Managing the Dark Side of Competitive Rivalry. Graziadio Business Review17(2).

Lunander, A., Lundberg, S. and Pettersson, N., 2016. Price and Quality Segmentation of Multiproduct Firms: Some Empirical Evidence.

Saeed, H., Rödel, H., Krzywinski, S. and Hes, L., 2017, October. ‘Spacer stitching’, an innovative material feeding technology for improved thermal resistance. In IOP Conference Series: Materials Science and Engineering (Vol. 254, No. 13, p. 132004). IOP Publishing.). 

Santos, D.F., 2017. Adidas Group: equity valuation thesis(Doctoral dissertation).



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