Challenges of adidas when entering international market
Answers
Explanation:
With increasing globalization and evolving technological advancements today, the function of physical distribution is not as it was in past. Today, the transport and distribution area has evolved significantly as now various advanced tools are available to manage these aspects as well as use of IT in this regard. Different advancements in this field really present businesses with number of opportunities to improve their business by effectively handling specific strategic challenges (Berger, 2008, p. 20).
Similar is the case with Adidas, as it may also effectively deal with distribution related strategic challenges by making use a range of distribution tools and techniques as discussed here in this paper. The paper evaluates the company information, and the strategic challenges faced by it in regard to distribution. Subsequently, descriptions of the major tasks that need to be carried out to tackle issues are given in concern to the selection of an aspect, which is “Application of a range of distribution tools and techniques”.
Company Background
Adidas is a well known German multinational corporation involved in designing and manufacturing sports clothing and accessories. From the time of its establishment, the company has attained immense success and this is the reason that along with the production of sports footwear, it also produces bags, watches, shirts, eyewear, and other various sports- and clothing-related goods (Berger, 2008, p. 22). In present, Adidas operates as a leading sportswear producer in Germany and Europe. As well, it also operates as the 2nd major sportswear producer throughout the world. From last 80 years, the company has been a part of the world of sports on every level, offering state-of-the-art sports footwear, clothing and accessories.
Nowadays, the Adidas Group is a worldwide leader in the sporting goods industry and provides an extensive portfolio of products. Products offered by the company are available in every part of the world, and this has become possible due to its effective supply-chain strategy and its management. The company operates with a simple strategy of strengthening its brand and products to continuously improve its position and financial performance. The company work with more than 1,070 independent factories throughout the world, which produces its products in 67 countries. Its supply chain is worldwide and multi-layered, with a lot of business partner, some of whom are instantly contracted and others who are not (Our Supply Chain, 2013).
Challenges faced by Adidas in Distribution Area
The company being operating with a global and multi-layers supply chain effectively manages transport and distribution, but still it really confront a strategic challenge of weak distribution network. The company being in operations more than 80 years operates in all countries, which in turn make it difficult for it operates with a strong distribution network. In addition to this, the company’s supply chain is also long and complex, depending on about 570 factories through the world (Berger, 2008, 39). With large supply chain it becomes difficult to manage distribution in an effective manner.