Category Archives: strategic management

google-gps

What you do when your company heads towards out of business by a search giant conquering several categories. Google is launching a free sat-nav application integrated with search which you can use it on your phone. Garmin, Tom Tom and other related company’s shares just fell severely in the last days, and figures are not positive.

So what these companies should do? the dip is near and the turn should be strong, but the fact is that the question lies on what should have they done. One of many reasons GM might have failed was that it didn’t spot or believed in the green opportunities of the future auto industry, which could reduced people’s annual spending on cars with a valid reason behind. Yet, they kept insisting building bolder cars with high levels of gas consumption plus launching more and more brands losing focus.

GPS nav companies face the same irony when confronted with such market shift. Google is offering a free app which might be of a superior quality when compared with others charging around 50$ to 100$ US per app. Mobile is concentrating everything, and search is indeed the perfect match for such GPS services. As for the free model, that’s just how Google operates, along the long tail.

Toyota plans hundred years ahead, and as many say today that it is hard to plan next month in such rapid changing markets, I believe companies should definitely plan ahead several scenarios that can happen in the fast moving markets we see today. The key thing here is that they shouldn’t be able to react, but instead drive their industry and product categories as Google keeps on driving. Innovation is staggering and decisive today. If you had a Google next to you as your direct competitor what you would do today?

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adidas-11

Throughout all communication points where the consumer can experience the Adidas brand, we can see that a well-implemented integrated strategy is undertaken. Below, are the main brand elements that contribute to the perceptions consumers today have on Adidas.

1.  Leveraging brand image through athletes
Adidas initiated its path representing winning teams, equipping several athletes in the 1928 Olympics and later the German national football team. Since then, endorsements on athletes represent the best way to leverage the brand. Adidas smartly identified individuals with high potential of winning and which could represent the brand core values, partnering with famous football players, Olympic winners, tennis athletes, cycling champions, swimming competitors, and many others who could also score high in celebrity quotient, such as David Beckham (Football), Kobe Bryant (Basketball) or Anna Kournikova (Tennis).

2.  Actively sponsor major teams and sporting events
Later on, Adidas became solidly present on numerous national, club and local sports teams, providing all kinds of sports equipment to these teams and creating high levels of awareness together with powerful connections with winning teams – endorsement of successful teams. Active sponsorship of major global sporting events is another key brand sway. The Olympics, World Cup, and recently the Super Bowl, are major events where Adidas is involved, making the integrated strategy of event endorsement together with teams and athletes endorsement, raise awareness on its key brand values of authenticity, inspiration and achievement.

3. Channels: Retail partners, Adidas stores, and Adidas innovative superstores

Retail partners – Specialized sports stores
Since early Adidas is strong at the POS, incorporating its own merchandising into retail stores and partnering with retailers to effectively develop a consistent marketing next to the consumer. An effective strategy in leveraging the brand at the POS is made, creating a strong position at the most important consumer experience point – when ‘feeling’ the product, and fighting directly against its competitors. In determined retailers, Adidas involves its products not only with inside merchandising, but also with powerful outside banners.

Adidas stores
In its own stores, Adidas pulls out its best in the branding experience consumer can go through at the POS. A close look at some evident store brand elements tell us the use of colours, employee clothes, lightning, images, labels and other elements, make a special combination of its core brand elements displayed intelligently into a single store.

Adidas innovative superstores
Creating a unique and stimulating Adidas experience, the Adidas Sport Performance store is designed to be more than a normal sports store. It demonstrates Adidas commitment to innovation by launching the first ‘Mi Innovation Center’, featuring a high-tech customization process that gives consumers the same treatment as elite level athletes, providing them foot scanning analysis, an “experienced personal partner” recommendation based on their feet, performance needs, and customization options which allow designing and personalizing footwear according with users’ personal style.

4. Details: Making Adidas brand experience in each detail

Examples of packaging, labels, staff members (as mentioned before) along with other details, complement the whole brand experience of Adidas. Branding is about working on each detail to deliver a 360′ experience. In the case of packaging, an after purchase example of brand experience integrates brand communications in the best way, as shown below – Adidas Originals packaging on a street marketing campaign and its website.

adidas-on-street2

5. Into Digital: Websites

Adidas Performance Website
A well-integrated communication is shown in Adidas performance website, by the use of the brand color palette and remaining brand elements. An opening video ad transmits a warm welcoming to Adidas history, making a strong connection with the consumer by telling a story – the founder and foundation of Adidas involved in passion and respectfulness. The remaining layout is well designed with easy and simple menus, making the whole experience user-friendly and emotional driven.adidas-website3

Adidas Originals Website
Again all the classical look and logo are well characterized to excel the Adidas feeling of the classics over modern glances. The colour palette changes, and the blue and white take over giving a fresh look. Similar to the previous website, it s highly interactive and dynamic with flash inputs. Content is easy to find.

Adidas Y-3 Website
In Adidas Y-3 Website, a different approach takes place to a more modern conceptualization of the brand; a strong futuristic layout is implemented and a video makes a small presentation. Interactivity and dynamism is the key here.

6. Advertising: Creativity, Innovation and Passion in Adidas ads

kahn-ad1Adidas is well known for the advertising campaigns it has created along with its agencies of trust. Recently, the “Impossible is nothing” campaign, featured football stars such as David Beckham, Messi or Ballack, drawing raw creative sketches along with a discourse about achievement in life, ending with the campaign slogan. This campaign is an example that fits perfectly on brand core values (achievement), being well executed in that sense. Other advertising tactics lead to an exceptional implementation effort, such as the example (on the right) of creating giant billboards, well regarded within the innovation and authenticity Adidas wants to transmit. In this case, the billboard represents a 65-meters-wide Adidas placed on a bridge scaffolding over the road to Munich airport, featuring the German goalkeeper Oliver Kahn catching the newly-designed ‘Teamgeist ball’ during Germany’s World Cup 2006.

7. Strategic partnerships: Leveraging brand positioning to premium

To conclude, partnerships with Porsche, in which special designs on footwear are created; Stella McCartney partnership with its apparel design; and the Y-3 brand implementation with Japanese designer Yohji Yamamoto – all constitute a bright strategic decision in leveraging the brand into premium categories. (but does it work?)

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bridge

TurboJet and FirstFerry are the major ferry operators between Hong Kong and Macau. Within 2016 their business is over or substantially reduced. The Macau bridge construction is starting next year and is expected to be finished by 2016. Here we witness an obvious change. The shift from a way of transportation to another will definitely affect their business. Its obvious – they have time to act. It could not be dramatic, but sure will make a big difference. Change happens everyday, the development of Internet, shifting economies, social values, etc. Change is happening today. Most companies didn’t realize yet the change, and how they cope with this change. Later will be worst, act now.

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downturn1Today, strategic management should have a more close regard for downturns, paying more attention to the external environment and its development around economic cycles. Economic cycles are well known for economists, stockholders, traders, etc, but also for companies executives, which even having their own shares on stock markets seem to ignore their cycles. Do they think on uncertain futures and economic downturns?

I believe Toyota is not going to ask for a Japanese government bailout. Within thousands of reasons, Toyota business approach along the years is quite solid, it even compromises a strategic planning of 100 years ahead, aside from creating many well known effective management tools which comply with their strategic approach. Moreover they are growing in other markets and concern other industries as well. South Korean conglomerates such as Hyundai does the same, and many others around Asia extend their portfolio to other industries in order to expand and sustain themselves.

GM, Chrysler and even Ford are now counting on US government when they should count with themselves on this downturn. With years of history and achievements, perhaps the fast track to gain short term profits and strive on the shareholder value principle is hitting hard now on their brand, or better, their foundations. Simply, they have become unable to handle such a downturn. Its true that recession affects obviously companies immediate sales, but shouldn’t be these multi billion companies with million wage executives be prepared for downturns? Shouldn’t they adopt similar tactics as Toyota in terms of strategic planning and management practices? Shouldn’t they assure economic sustainability in the worst of scenarios? Shouldn’t they expand their portfolios and make investments in other industries? Shouldn’t they had realized hybrid cars would be responsible for the environment at the same time could cut gas costs on their customers, which by the way they should think about?

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