Adidas Decision Making: Exploring Challenges And Opportunities

About Adidas

Discuss about the Identify the Decision Making of Adidas.

Decision making is one of the key task that is to be done by any of management team in any company. It can be explained as a process of making choices by properly identifying and gathering relevant information also asserting alternative resolutions for a problem (Turner, 2015). The organization that have been chosen for the process is the footwear making held of the world Adidas. One of the major decision making situation that came up for the management team of the organisation was to take the decision of making casual and converse shoes other than that of the sport shoes that adidas was main concern of the organisation(Ind, Iglesias & Schultz, 2015). This decision was to be taken because of the factor that the competitors in the market were increasing and the organization lacked the proper innovative options. This paper evaluates some of the major reasons and problems that the organisation faced.

Adidas which is one of the big shot name in the world of the footwear industries which world have seen for the last years(Ind, 2017). The organisation was started by the ADI Dassler by the year of the 1900. The world knew the adidas to be one of the top notch in the field of the sports ware and sports equipment’s like the footballs and gears.

The organization mainly focused in making some of the world in class sports shoes for the sport personalities around the world. The first sport shoe that made a hit in market was worn by the German football team for FIFA world cup. By this time the market came up with new brands like the Nike, Puma and rebook. Adidas market cap decreased by the late 90s as there cam plenty of other organisation. At this time of crisis, the organisation came up with a new idea of how to tackle the ongoing situation with some of the major changes in its shoes making concept (Lindner, 2015). Adidas became of the first brand in the world to introduce shoes that were sports inspired but focused on the street wares. This concept became a revolution for the organisation as there were no other organisation which was providing such an alternative to the clients. In order to take decisions the organisation follows some of the major steps to gather proper information and sure that with the new decision there is no loss to the organisation (Wang, 2017). The steps that the organization follows are:

• Identifying the Decision: In this case the main decision that was to be taken was to ensure that whether entering in the field of the daily foot wares and the street wares would be beneficial for the organisation or not. The management had to do huge market research and understand the proper idea of the people(Holtbrügge & Schuster, 2017). Other than this the other major problems were the cost and the designing of the shoes and whether the society would accept it or not.
• Gather relevant information and doing proper market research: In order to make the idea of the street wares play successfully in the market the management had to do huge research and gather proper information on the ongoing trends of the market. Other than this one of a major challenge was to understand the rivals and what have been doing by for the market change.
• Identifying the alternatives: Although there were no such many alternatives for the organisation at the time of the launching of the street wares, but the organisation would stop the process of launching the shoes.
• Choosing the correct alternative: AS there was only one choose to be made that was to be launched or not (Frumkin, Bradley & Weiss, 2012).But some of the choosing alternatives were choose the design and price of the shoes that would attract the people of the world.
• Taking proper actions: The organisation needed to take proper and immediate actions to launch the product in time so that there is no delay and to take the maximum advantage.

Decision Making Process in Adidas

In order to make the process of taking proper decisions the team had to follow some of the major decision making techniques, some are:

• Maslow Pyramid: The Maslow’s pyramids states the hierarchical needs of the peoples (Laluyan, Pangemanan & Worang, 2017). It has seven layers psychological needs, security, social relationship, recognitions, and acquisition. In order to make the decisions taken by the management this has to be done and made sure that there is proper result of the product.
• SWOT analysis: Strength, weakness, opportunity, Threats, this is one of the major concept that had positive results on the decisions of the manager. The major strength of the organisation was the name it already had from the sports market. While the weakness of the organisation was its less knowledge of the market of the street shoes(Rudolph, 2016). While the opportunity came up as people would buy things by the name of the adidas and hence an opportunity. Threat lied as the organisation did not knew what other organization had been doing.

Before the product was to be launched there were many problems and challenges that the organisation faced. In the mid 80’s, the organisation faced huge losses due to the market competitions (Liu et al., 2015). Hence in order to increase the sales and revenue of the organisation the order to increase the revenue of the same the management had to take up huge decisions of taking the market of the street shoes and canvas shoes. In order to do the same the organisation had to face many problems and challenges. Some of the major challenges were:

• Although the organisation has huge name in the field of the sports ware and sports equipment but had no knowledge of the ongoing trends of the street wares and hence it became a huge challenge for team to make the same.
• Many of the designers in the organisation refused to work in the domain and hence became a problem for the management to cope up with the situation.
• The organisation had no knowledge on how the market would behave on how peoples will take the concept and buy the things.

Even though Adidas is a massive name in the shoe industry as they are very popular for making premium sport shoes and most of the famous sport persons also advertise their products. However, they are not the only one in the market. There are other massive brands which are equally completing with each other to get an extra edge such as Nike and puma.  Business analyst must consider new opportunities to gain exponential growth (Moser, Muller & Piller, 2016). Adidas market cap decreased by the late 90s as there cam plenty of other organisation. At this time of crisis, the organisation came up with a new idea of how to tackle the ongoing situation with some of the major changes in its shoes making concept. There are several advantage adidas can achieve by making casual and converse shoes. By making new type of shoes they can expand their key business areas as not only sportspersons, normal peoples will be engaged directly with their product. They will be able to make more revenue as their sells will be higher than usual. Adidas will be also able to compete with the other brands such as Nike and puma. As a shoe brand they needs to utilize every opportunities to sell their products and present their products to everyone(Schmid, Dauth & Kotulla, 2012). They will be also able to gain many insights and new opportunities to envelope their business even further. Further it became famous as many of the super stars and film stars revolutionised the concept of the converse shoes and the street wares.

Conclusion

Although the organization is one of the biggest organization in the world of the world the management of the organisation had to make some of the biggest decisions in order to make the organisation rise. By the late 2000 it became not only the biggest organisation for producing the sports and the street wares. Other than this Adidas also became a name of the canvas shoe market. Currently mane of the world biggest superstars of the world use the common ware made by the Adidas. Other than this there are many customised shoes that are specially made by the Adidas. Hence it can be said that the decision of making street wares and canvass shoes became a revolutionary decision that was ever made by the management of the organisation.

References:

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