I. Point of View (P.O.

V)

“Kasper Rorsted”,
CEO of Adidas
Group
II. Synopsis/Overview of the Case
Adidas is one of the manufacturers of sporting
goods, which achieved its success by developing
shoes for certain sports such as soccer and track
and field. However, as time goes by the needs or
trends in sporting goods industry changes, but
Adidas seem not to adopt with those changes and
stick with the old style. Moreover, different brand or
companies like Nike and Reebok applies appropriate
marketing mix that enable for them to surpassed
Adidas in terms of sales during the past decades.
III. Statement of the Problem (S.O.P)
General Question:
 What actions does the CEO, Kasper Rorsted, could do to reach the set

goal of being number one in the global market of sportswear industry

that should open window of opportunities in leading them for longer
profitability and in a sustainable way?

Specific Questions:
 What strategic decision Kasper Rorsted must conduct in making the

company competitive on designing, building to the open source in the

adaptation of new era of hypercompetition?

 What kind of portfolio does the company have to build in the elimination
of the hindrances both the external and internal factors towards
acceleration of manufacturing, marketing, and communication strategies
would be useful to encourage customer in the acquisition, as a result
would dominate them from their biggest competitors?
IV. Areas of Consideration (S.W.O.T.
Analysis)

Strength Weaknesses Opportunities Thre

Brand Value Expensive Products Growing Sportswear Fake Pr
Industries

Young Costumers Limited Product Line Investing in Smart Technologic

prefer adidas Materials

Strong Financial Supply Chain Shortage Global Expansion Global E

Position Slowd
V. Problem Flow Diagram
Corporate Strategy of Adidas in becoming the
World’s Leader in Sporting Goods

Offers Sporting Goods

No
Adidas stick to old
Did they create marketing
style.
strategy?
Yes

Continue offering sporting goods to consumer.

Competition arises.

No
Did other competitors such as Nike Continue undergoing
and Reebok surpass Adidas? operation

Ye s

Reebok and Nike top the sportswear industry.

Assess the external and internal factors that affect their profitability.

Changes in consumers’ preference

The company set goal to become the number 1 in sportswear industry

in the world

Strategic Decision of Adidas Corporation

 Corporate Strategy of Adidas in becoming the
World’s Leader in Sporting Goods

Offers Sporting Goods

No
Adidas stick to old
Did they create marketing
style.
strategy?
Yes

Continue offering sporting goods to consumer.

Competition arises.

No
Did other competitors such as Nike Continue undergoing
and Reebok surpass Adidas? operation

Yes

Reebok and Nike top the sportswear industry.

Assess the external and internal factors that affect their profitability.

Changes in consumers’ preference

The company set goal to become the number 1 in sportswear industry

in the world

Strategic Decision of Adidas Corporation

VI. Presentation of Alternative
Solutions
1. Open sourcing through collaboration or
Joint Arrangement.

2. Restructuring the company’s management

3. Efficient production cycle.

 VII. Evaluation of Alternative Solutions
Alternative Solution 1: Open sourcing through
collaboration and joint arrangement.
dvantages Disadvantages
se. 1. Joint arrangements would be a broad adaptation th
parties did not comply, possible loss may occur.

arrangement the company would be 2.  There could be a lot of planning and re

petitiveness in assessing or outsourcing
development.

speed sports company that would 3. There could be restrictions in the agreement.
cing complexities on targeted
 Alternative Solution 2: Restructuring the
company’s management.

ntages Disadvantages
ve competitive advantage. 1. It may lead to deletion of jobs and layoff of personnel.

etter assess the key products or 2. It may cause in reassigning workers in different field or duties
ting to achieve one’s goal. that may incur additional expenses such as training expenses.

onal cost decrease and operational 3. Restructuring may indicate that the company is struggling and
may question the company’s future stability.
 Alternative Solution 3: Efficient production
cycle.

Advantages Disadvantages

high quality product, Adidas meets the 1. Required investments in skills and training.

cient production­ capability the lower 2. High cost of producing one unit or job is higher.
r everyone.
of product produce in market. 3. It may cause over producing of product that cau
losses.
IX. Decision
The analysts chose to suggest alternative no 1. :
“Open sourcing through collaboration and joint
arrangement.” These will serve as the competitive
advantage model of Adidas evaluating its
resources and capabilities, identifying
distinctive competencies and leveraging those
competencies.
 X. Implementation
 Action Plan or Strategies
tion 1 Action 2 Action 3
termine the fastest Analyze the production Meeting and delivering of
y to serve to process. desirable product of consumer.
nsumers
ntify places in state Gathering of shared Implement accessibility of
global mega trend. ideas and global trend products to consumer.
in terms of consumers’
buying decision.

ening the doors of Collaborating and Creation and implementation of

rketing. adopt innovation. competitive advantage model.
cate
Gantt Chart
tasks.

arding

or
cess.
he
e test

arketing Strategy
to the
g
on

on of
olio

tuation Analysis
g

ents
• Flowchart of the Corporate Strategy of
Adidas
Strategic Decision of Adidas Corp.

- Clarify the chosen alternative solution.

Focus on strategic alternative.

1st alternative: Open-sourcing through collaboration and joint

arrangement.

Application of creating the new plan; speed, cities, open source.

Adopting to market trends to the products.

Create new product design.

No
Does it meet the criteria in a Improve the
competitive market? design.

Yes

Start production using six strategic pillars of Sportswear industry: brand

portfolio, innovation, market, team, supply chain and sustainability.

Creation of qualification based on market trend and consumers’ demand.

Evaluate the result.

No Improve
strategic
Does product meet the standard? planning.

Yes

Introduce the new product to the market

Maintaining relationship with joint venture.

 Strategic Decision of Adidas Corp.

- Clarify the chosen alternative solution.

Focus on strategic alternative.

1st alternative: Open-sourcing through collaboration and joint

arrangement.

Application of creating the new plan; speed, cities, open source.

Adopting to market trends to the products.

Create new product design.

No
Does it meet the criteria in a Improve the
competitive market? design.

Yes

Start production using six strategic pillars of Sportswear industry: brand

portfolio, innovation, market, team, supply chain and sustainability.

Creation of qualification based on market trend and consumers’ demand.

Evaluate the result.

No Improve
strategic
Does product meet the standard? planning.

Yes

Introduce the new product to the market

Maintaining relationship with joint venture.

 Build relationship with manufacturer and costumer.

Gather feedbacks.

Assessment of reports

No
Application of
Did they reach the number one
position in sportswear industry? contingency
plan

Yes
Attained company’s objectives

Figure No. 2: Flowchart of the Corporate Strategy of Adidas

This figure shows the process of implementing the chosen alternative solution to the problem of
Adidas Company
XI. Contingency Plan
In case that the best alternative solution does
not work, the analyst decided to use the third
alternative solution which is to have the
efficient production cycle for the company.
XII. Management Concepts Manifested
 Strategic Management Principle that include
wide range of policies, guidelines, and best
practices to strategic management and it is used
to lead the company in better results, faster
development and strong market position.
 Philippine Financial Reporting Standards 11

which deals with arrangement of two or more

entities or individuals having joint control.