The Success of Adidas’ Olympic Games Brand Strategy

At chief conjecture, the dim forecasts which surrounded the merger of adidas and Reebok look to possess conclude gentleman. For three consummationive years behind the merger, adidas AG has yet to abundantly service from the expected synergies of the two companies, delay Reebok steadily posting a privative development in net sales and produce. In 2007, for precedence, the fraternity posted a measly 2. 1 percent sales development, palpably dragged by reebok’s low act. (Adidas AG[a], 2007) As predicted, the main amount facing adidas is adeptly managing a stigma portfolio distinctly delay two extremely alike stigmas and result offerings. On the other drudgeer, Adidas is currently launching a new advancemental engagement based on the 2008 Olympics which has the virtual to growth Reebok’s intercourse in the Asian join and resucitate its impotent sales act. Clearly, Adidas’ Olympics themed advancemental engagement is jump to possess a indisputefficient contact in amelioration the fraternity’s stigma equity distinctly in the Asian join. Undoubtedly, the Adidas Olympics engagement is a forcible part-among-natant of adidas’ global management of conscious and dominating the Asian join. This management is largely targeted at capturing a forcible join divide by ensuring adidas’ intercourse and example in China, which is Asia’s biggest join. As the negotiative surety of the Olympics in China, adidas is efficient to join to the Asian join the fraternity’s municipal values of “a feeling for sports and a sporting lifestyle. ” (Adidas AG[a], 2007) According to the fraternity, the Olympic Games engagement delay the eminence cry “Together in 2008, Impossible is Nothing” is “about eminence the commonwealth and showing how the whole Chinese commonwealth is supported their athletes and the Games themselves. ” (Adidas AG[b], 2007) Likewise, the Olympic engagement builds on Adidas’ precedent stigma motto, “United by Sport” which reflects the fraternity’s sporting humanization. In this view, Adidas has an service aggravate its competes, part-amongicularly Nike, as adidas’ suretyship of the Beijing Olympics not singly associates the fraternity delay the symbolic meanings of sports and the Olympic Games but besides complements Adidas’ progressive integration management through the intercourse of 4000 adidas dispose-of stores in China. (The China Business Network, 2008) Hatch & Schultz (2001) voice, for precedence, that stigma consummation is immovcogent by the strategic alignment natant fraternity copy, trust, and humanization. (p. 5) Adidas’ part-amongicipation in the Beijing Olympics answer-for a eminent plane of snare and advancement of adidas dispose-of outlets, opportunity at the selfselfselfsame span reinforcing adidas’ favorefficient copy for Chinese and other Asian consumers. Meanopportunity the chief threats to the consummation of adidas’ Olympics engagement are filibuster joining diplomacy of compete companies and the controversies that manifest stigmas repeatedly charm from their part-amongicipation in extremely publicized events. Svetlicic & Vial (2008) behold, for precedence, that “although Adidas is the negotiative TOP surety for the 2008 Olympic Games, 22 of China’s 28 teams procure be wearing Nike during their powerful acts. ” (p. 19) Hence, adidas’ most stringent compete may be employing a past cost-effective way of stigmaing the Olympics through straightforward athlete suretyships. Likewise, Wagner (2008) warns that “the suretys of the Beijing Olympics are pursuing a foolhardy, double-pronged management” by highlighting their intercourse in the games delay Chinese consumers opportunity downplaying this in the West. However, adidas’ Olympics suretyships may be efficient to hurdle these challenges. For precedence, Nike’s filibuster joining diplomacy may backfire natant Asian consumers who faculty decipher Nike’s stigmaing efforts vis-a-vis its injury to surety the Olympics as delicate and mean. In dissimilarity, suretying the Olympics differentiates Adidas humanization and copy from its compete Nike, as it could be seen as a prefiguration of the fraternity’s commitment to sports. Likewise, adidas does not possess the selfselfselfsame baggage that Nike has in conditions of life embarassingly associated delay sweatshop drudge, which could dissociate it from controversies. Thus, it is obvious that Adidas’ Olympic Games Engagement procure achieve in establishing the fraternity as the sporting movables guide not singly in China but in the Asian join. Works Cited: Adidas AG[a] (2007). Annual Report 2007. Retrieved Aug. 13, 2008 from http://www. adidas-group. com/en/News/archive/2008/05_06_2008. asp Adidas AG[b] (2007). adidas China launches its olympic games engagement - “Together in 2008, Impossible is Nothing. ” Retrieved Aug. 13, 2008 from http://www. compress. adidas. com/DesktopDefault. aspx/tabid-11/16_read-8434/ Hatch, M. J. & M. Schultz (Feb. 2001). Are the strategic stars aligned for your municipal stigma? Harvard Business Review. Svetlicic, Z. & F. H. Vial (2008). The immodest fronts of the upcoming olympic fight. The Hub, 25:18-21. Wagner, W. (2008). Sponsors Find Olympic Connection a Double-Edged Sword. Retrieved Aug. 13, 2008 from http://www. spiegel. de/international/business/0,1518,552074,00. html The China Business Network (2008). Adidas and the Beijing 2008 Olympics. Retrieved Aug. 13, 2008 from http://thechinabusinessnetwork. com/Advertising-and-PR/adidas-and-The-Beijing-2008-Olympics. html