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S.W.O.T. ANALYSIS OF ADIDAS

S.W.O.T. ANALYSIS OF ADIDAS
TO THE MOMENT OF LOUIS DREYFUS TAKE OVER


One of the most popular athletic shoe manufacturer the German Company Adidas founded in 1920’s, maintained until today in the ream market of profile through the quality and range diversity of his products. This report details the history of the company till the moment Louis Dreyfus take over and analyses his leadership style and contribution to restoring in to profitability in 1995 when the adidas share was one of the most interesting new introductions on the stock market.


Strengths
Ø The brand image;
Ø A good position of the firm on European market (leader of the market).
Ø Range diversity of products (footwear, clothes) both with important contribution to incomes;
Ø Strong licensees in countries with imports restrictions;
Ø Varied branching channels;
Ø Good departments of investigatory and development.

Weaknesses
Ø The absence of internal communication, the bureaucracy and management turbulence;
Ø The absence of marketing activities and coherences in promotion brand and produced (a single TV ad on year).
Ø The weak image and dominated quota from United States sales;
Ø Lost the quotas on the market in France, Great Brittan, and Spain;
Ø Reduced profitability with 90 % from incomes witch is from the basic products.
Ø The Mark does not have a good image among woman and children
Ø Long delivery terms.

Opportunities
Ø Market globalization and the development of international trade;
Ø A image development of a fashion brand;
Ø Urban culture tendency of utilize sport footwear and clothes as the casual day apparels;
Ø Grow the quota of the United States market;
Ø Increase the market of sports articles with 28 %; Increase the number of women who practice recreational sport; the development of the recreational sports and breed the number of probationers;

Threats
Ø The competition (Nike and Reebok) special in sales, on the market niches;
Ø The development of new sports and the development of sport in general can attract new competition on this market;
Ø Decrease down to 20 % below from the total sold sport footwear, the majority casual footwear;
Ø Competition has a strong marketing and promotion programs (Nike and Reebok) for children and teenagers footwear;
Ø Those who manufactured under Adidas license can choose anytime to give up.

LOUIS DREYFUS LEADERSHIP STYLE

 “At ADIDAS I believe I convinced people to follow me, by default because they had such a lack of leadership since Horst Dassler died in 1987...
I treat people the same way, which, especially for a German company is unusual...
I am the worst speaker in the world, I can’t make a rousing speech, If I analyze myself, I don’t think I have many qualities of what the business school would think of us leadership..

I think I’m a great motivator one-to-one-sorry a good motivator. Making a compliment to myself, I listen to people.
Also, I always tell them, you can make mistakes; that’s the way you learn. The only thing is always come back to me when you’ve made a mistake. We can try to sort it out. But don’t give me a bad surprise when it’s too late to do something.”

Strengths
-         A good name in the financial industry build it through his own forces
-         Independent – he leave family business in 1981 and starts one on his own account, trying to make his own road in the business world;
-         Visionary - a different flair for business. In 1993 buys 15 % of Adidas shares, Company who many most consider a decline business and banks an already lost deal.
-         Good negotiator - he succeed to save Satchi & Satchi," buying continuously for to suppliers and be able to bring infusions of capitals
-         Team player - unbendable attitude, get closer to those who work with. He enforce this attitude to Adidas team, induce radical changes to the management strategy by renouncing to the calculated value of the functions and laying stress on results;
-         Team leader – he identifies with his team, work with them, for them, motivates his employees to work for achieve the company goal. Don't enforces his opinions through force, he negotiate with the team.
-         Spirit of competition - objective and practical, remains objective in business and dares to take, if necessary, radical decisions who for many most seams to be initially controversial, in order to touched the objective of the company. A grate example in this case is the dismissal of the entire management department from Adidas to hire young people, from different parts of the world, those who have the capabilities to understand the expectation of the current market.

Weaknesses
-         heist spirit of competition – hides his impulsive impulse behind of a friendly attitude, but can’t control his reactions when defeats is evident
-         Exaggerated ambition - he wants victory in any competition and enforces this style in each member from his team. Pushes his own limits and the others to appear the name and winner aura.

Opportunities
-         Niche zones - Dreyfus apprehend the market and search the zones of niches, just the same way he manage in the IMS Company case, this politics helped him to a gain a considerably growth in 5 years, from his appointment as CEO and up to the sale of the firm
-         Marketing Dreyfus is conscious of the colossal loss which Adidas suffers in last decade because the company lost the contact with the market. In the same period, Adidas lost many publicity contracts with grates sportsmen’s and forgets to address to the market, which become more and more opened to the products campaigns. Dreyfus doubles the marketing budget and starts an aggressive campaign of brand promotion.
-         Manufacturing – the Adidas losses comes from heist costs of production, because his factories was in Europe, were the work costs are very high incomparably with low costs practiced in Asia. Nike and Reebok take advantage of the Asian market, they open factories there, and they have low costs of productions witch reflected in prices. Adidas can’t keeps up with the competition and misses quota of the market in United States, from 75% in 70’s to 1. 9% in 90’s
-         Diversity – understands the “force” of diversity and how company with multiple competent can weigh on the market, Adidas buys Salomon and manage to address with her own new products and succeeds to penetrate on the markets.

Threats
-         The defeated – the menace in Dreyfus case can come from those who dared to faces it and tried to eliminate him from his successful business path, just like the Adidas case.



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