Explore strategic issues in sport management
Purpose: Explore strategic issues in sport management.
This is a team-based project with teams assigned by the instructor. The strategic analysis centers on the expansion of Adidas in the Chinese market:
SUMMARY: The German sporting-goods company, Adidas, recently announced plans to add 2,500 stores, up from today’s 112, and widen it distribution to 1,400 cities from the current 500, in China over the next five years. Adidas is pushing big for growth in China in an attempt to outbid rivals such as Nike and Li Ning that have gained market share following the 2008 Beijing Olympics. The sporting-goods company believes that China is an important market for them and Chinese consumers want access to its products. Adidas will try to reach China’s more well-to-do urban shoppers who usually spend more on apparel than those in lower-tier cities. For the sake of publicity, it has sponsored the Beijing Marathon, the company’s first running competition in China. More running sponsorships are being planned. The company is also partnering with fitness clubs, providing clothing to fitness instructors, buying advertising space in locker rooms and over treadmills. Adidas is considering the sale of its clothing at fitness-center shops. The company plans to use e-commerce as a bigger part of its growth strategy. Adidas’s largest market is North America, with retail revenue growth of 14% in the third quarter of 2010. China is not expected to overtake the U.S. by 2015.
Your strategic analysis will be graded on quality of work, presentation, supporting evidence, and use of technology.