adidas Business Strategies
The success story of adidas throws up valuable strategies and keys to business success for business managers and entrepreneurs to use for their business.
Here they are:
Starting Business With Little Or Nothing
With knowledge of what to do, the right attitude, focus, determination to succeed and creativity, you can start a business with little or no money. You will be able to discover free or almost free resources you never thought existed.
Adi didnâ€™t have the needed materials to make shoes from, or the electricity to produce his products, but he never allowed that challenge to stop him. With the right attitude he scavenged for materials and creatively made footwear of high value from them.
Marketing Skill Is Needed
To succeed in business does not stop at knowing how to create high quality products, knowing how to sell them is equally important, if not more. Without the ability to sell, your income is stunted, and your business suffers â€“ you need good cash flow to your business for it to be vibrant. To ensure this, you should learn marketing, and continue to find effective strategies to market and sell your products.
Adiâ€™s success in taking adidas to the top of the industry globally is attributed in no small measure to his marketing genius, which enabled him to create innovative marketing campaigns repeatedly.
Continuing To Be Creative And Innovative
To be able to beat the competition and remain top in your industry, you cannot afford not to keep been creative and innovative in your business. With such character, you will always be ahead of the competition.
adidas domination of the global sports shoes industry in the 1950s, 60s, and 70s, was the high creativity and innovation in product creation and marketing that it continually churned out.
Market Penetration Strategy
To get into a market newly, an effective strategy you can use is to give out your product for free to some of your target customers for them to sample or test it. This allows you to prove to them what you believe your product will do for its users, and for them to compare it with what is obtainable in the industry and see which is better. This strategy is cheaper and more effective than trying to force your product down their throat using advertising.
This was the strategy that Adi employed, and which worked like magic. Seeing Jesse Owens run and clinch four gold medals at the 1936 Olympic Games on adidas shoes was enough to make every athlete the world over want to wear it too.
Establish Solid Succession
If you are the owner of your business, you should begin to lay a solid foundation for the business to continue running even after you are no longer there as soon as the business takes shape. It is not wise to put family members who are unqualified and unmotivated in management positions; they will definitely ruin the business. Instead, employ qualified and result-oriented professional managers to run it. With a management system in place, you can be rest assured that the business will continue running after you may have gone to the great beyond.
adidas fell from its glory in the 1980s after the death of its founder, Adi, as a result of his family members in management positions fighting over the control of the business. Perhaps the business would have since died also if it hadnâ€™t been sold and managed by professional managers.
To be able to compete effectively, especially in an industry where competition is high, you really need to watch and find ways to cut your costs. If your competitors are selling at lower price and still keep their quality than you because they have found a way to produce at lower cost, you will be losing your market share in no time.
Cutting your costs does not only enable you to sell at competitive price, it also allows you to make good profit, and be healthy.
Part of the strategies that brought adidas out of the woods was its new managementâ€™s cost cutting program, which included moving their production to Asia where costs were less.
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