Adidas Value Chain Analysis - Case Study Example

The value chain analysis of Adidas strongly borrows from Michael Porter’s perspective in that the company strongly maintains its primary activities since its beginning. For instance, inbound and outbound logistics are increasingly strongly in the company and this ensures that it operates optimally in the current environment. Adidas Group has certain inbound logistics chain for raw material movement as well as unassembled products inside the organization. Further, the outbound systems logistics for finished products transportation is effective and timely.

The main operations, sales, marketing, and related operations are increasingly strong and this has pushed the company to be the main sports industry in the sector. The team of researchers responsible for new and innovative product development and shifting market demands has been increasingly sustainable and has assisted Adidas to maintain its position in the market and attain a competitive advantage. Adidas Group has introduced electronic sales and continued to dominate the strategic marketing in e-sales.

The company monitors service quality, staff training, and satisfaction of customers through the franchisees as a crucial aspect of the value chain. Additionally, the supporting activities of Adidas Group, which includes procurements, research, human resource management and development as well as the development of the company’s infrastructure and is well operated to ensure the strong reputation of the company, value of the brand and status of the market. Adidas mainly emphasize on materials procurement and all other activities related to the cost-effective mode, making necessary use of worldwide strategies of offshoring and sourcing.

For instance, Adidas Group put more emphasis, effort, and resources on product innovation in ensuring competitive advantage in the sports industry. Research and development will make the company produce better products and meet the goals and expected customer demands and preferences. Each year, the Adidas Group expands and procures new and innovative techniques to satisfy consumer needs. Similarly, Adidas has expanded some of its activities of manufacturing to nations such as China and Vietnam, considering the costs of labor.

Additionally, the Adidas company workers are well treated and always satisfied, (Kaplinsky & University of Sussex. 2000). The organization believes that its workers an increasingly crucial resource for the organization and therefore has a very strong human resource management unit that performs activities such as recruitment, hiring, development, training, discipline, reward, and dismissal of personnel. To attain employees’ welfare needs and attain the target in sporting product industry that is entirely dependent on employees’ enthusiasm, well-being, and talents, the company boosts employees’ morale.

This is done through compensations, medical insurance, and transport allowances.