Essay Sample on Adidas Originals: Cult Brand Built on Social Media & Kanye West Hype

Introduction

Adidas Originals has so many followers on twitter which have made it be a real cult lifestyle brand. Among the broader approaches used by Adidas to market its products, social media is a natural extension of them more so when it comes to the creation of hype around its collaborations. Since 2014 when Adidas snatched Kanye West from Nike, it has fully taped into this opportunity by crafting a series of product launches intelligently building on Kanye West's broader fan base (Kruger et al. 1). The run-up to shoe releases by the company is majorly done by posting on Instagram and twitting, and it has this approach to create interest and massive excitement from followers.

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Another approach is by giving control to its consumers, and this can trace back to its rebirth with the launch of its iconic Stan Smith shoe. Apart from drawing on the feelings of nostalgia, but also assisted in the reinforcement of its influence on subcultures and streetwear by emphasizing its heritage (Brennan et al., 669). Consumers were cleverly made to feel part of this story through the use of social media campaigns which surrounded its release. Adidas has also used social media platforms not only for marketing but also as a means through which their consumers can show their appreciation through the use of organic content.

The Social Media Activities of Marketing

Adidas Originals has dominated social media, and in 2015, it was the most liked sneaker brand on Instagram. The Adidas originals have more followers on Twitter than the main account, and this is a strategy it has used to ensure that it reaches its consumers at a more personal level by connecting to the youth. Through the use of social media, the company has also managed to deliver footwear to its audience in a believable form. Social media has also enhanced communication through the use of Adidas employees who act as the in-house influencers to influence the customers on social media. The company also uses the most popular forms like Instagram and Twitter to reach to its potential consumers. Besides, influencers also directly involved in the actual design process of the products.

The Social Media Activities of Human Resource

At Adidas, the ever-growing information technology, and more specifically the social media, have affected how their human resource do their jobs. One of the expectations of human resource professionals is to help build the company's reputation and brand through the use of their expert interpersonal skills and industry knowledge. Some of how human resource professionals are challenged at Adidas and how they thrive by social platforms conversations include the following.

Firstly is the training and developing of talent. Long gone are the days when educational materials could be developed and then traveling to all the company branches to deliver them to the employees. Today, training and development staff from companies like Adidas can now develop customized computer-based programs and use online means to deploy them for the benefit of their employees around the world.

Another way is by obtaining feedback about the company. At Adidas, the managers have a lot of concerns on how their company is perceived in the outside world and marketplace. Through the full exploitation of the online social platforms, the company human resource managers can efficiently receive negative and positive feedback from the consumers, current staff, former employees, and job applicants about their company policies, culture, and hiring practices.

The Social Media Activities of Accounting

The company has used social media to build relationships for its accountants. Though social media conversations, the accounting professionals at Adidas have managed to meet new people who are either respected colleagues from other organizations or even potential customers. Through following off other people who are of the same niche, the company has managed to increase its chances of business opportunities. The social media platforms have also been used to attract new talent in the accounting profession.

How Adidas Collect and Use Data

Adidas has managed to achieve its ambitions of being the top sportswear producer in the world through the collection of data from its consumers and its ability to act on the preferences of the consumers as well as their behaviors. According to Uhrich (2027), Adidas has seen the launch of a mobile app that has the capability of customizing the product, it's content, and interactions based on the personal preferences and behavior of a customer identified through the various digital engagement points by the brand. The delivery of the mobile app is done through multiple platforms like the marketing cloud, service cloud, and commerce cloud. Some of the features of the app include a customized product recommendation, a location, and a color preference, blog posts, personalized articles, real-time updates and videos which are concerning an individual's star performance or sporting goals (Cameron).

The app is also integrated directly with Google, and Apple plays enabling the consumers to pay through touch. The company believes that through the data that it collects, it is creating the best products, and this was through its CEO who on a conference was wearing a 3d printed sports shoes customized to his feet. Adidas sells 1.2 million pairs of shoes per day, and it believes that through product customization, the company can make more money and the customers have also become happier. The company uses technology to know who its consumers are, enabling it to serve them better. The designing of great products is attributed to by the software capability within the Adidas Company.

Adidas considers the consumers as the starting point of every product it comes up with. The shaping of the entire brand has been possible through consumer feedback which is either through the online reviews or the focus groups. After selling products to the customers, the customers are then able to give their reviews on the product, and such reviews are then used by the company to make improvements where necessary. If for example, a customer complains about the shape of a given product that does not fit or makes it comfortable to use it, then the company could go ahead to customize such product to meet the needs of the customers in future.

Porter's 5 Forces Analysis of Adidas

Adidas has remained as the leading sportswear company in Europe and worldwide, it comes second after Nike. The following is the analysis of the Adidas Company based on Porter's five forces.

1. Potential of New Entrants

As a result of the many barriers in the industry, there are little chances of new entrants into the market. Adidas has invested heavily in terms of capital, and this makes it completely difficult for new competitors to invest in research and development, advertisement, and signing the best athletes from different sports (Krentzman). Another strategy that Adidas has used that makes it not to face much competition from its competitors is through the outsourcing of more than 35% of its manufacturing to China and other countries in Asia (Narkar, Lasswade & Dhekane).

2. Power of Suppliers

Adidas attracts tones of suppliers coming from all over the world owing to the brand power that it has. None of the Adidas suppliers can single-handedly influence it since Adidas has a multi-layered and global supply chain, with the chain having several types of suppliers. As a result of this, Adidas is responsible for setting out the rules that the suppliers have to comply with, and not the other way around. The bargaining power of the Adidas suppliers is meager regardless of their importance in the Adidas business.

3. Bargaining power of Buyers

Consumers are always on the look for standardized products, and if they lack the knowledge about the product they want, the brand ever decides on their behalf. The Adidas buyers have a low to moderate bargaining power due to the presence of significant competitors like Puma and Nike (Narkar, Vaswade & Dhekane).

4. The threat of Substitute Products

The risk of substitute products is low to moderate with the number of competitors neither small nor large. Kimber states that while the local competitors supply the products at a much lower rate, some of the competitors provide to the needs of consumers at the high end (1). However, Adidas is not taking any chances and whether the substitute product in a cheaper option or related to sports; it is fighting all of them.

5. Rivalry among the Competitors

The competition that Adidas is facing from Nike ink in the market is a tough one. There are also other many competitors who are availing a wide range of products such as Puma and Nike. However, Adidas has maintained its market position as the second largest sportswear and shoes brand.

Adidas Operational Support System

Adidas uses telephone networks and management information systems to manage its workers. According to Jayawardhana (76), through the use of a management information system, the company can manage its functions such as service provisioning, network inventory, fault management, and network configuration. There is also a bit blending of Business Support Systems which assists in the various end-to-end telecommunication services.

The company's business model

The primary source of revenue for the Adidas Company is from the sales of products that it manufactures. The launch of Adidas Originals products is to enable the company to reach the lifestyle market. The products are designed especially for consumers who are less active in sporting activities. In this segment, the customers tend to search for sporty products and provide the global street style appearance at the same time (Cleff et al., 745). The consumers of the Adidas products are stylish and trendy, and in most cases, they are searching for the best deals, value for their money and durability.

There is a wide variety of products provided by Adidas to its customers, and it covers all the categories of footwear providing both performance and lifestyle products which are designed and manufactured in line with the customers' necessity. The company offers exclusive products according to market trends (Muntinga et al., 29).

The company's website

Some of the Adidas Apps include the Glitch and Runtastic. The Glitch offers enhanced fit while the runtastic puts fitness at the user's fingertip by helping one to set and achieve their fitness goals (Smith &Hans, 47).

How the company reaches out to the community in non-retail activities

According to Forbes, Adidas is the 3rd most sustainable company in the world. In 2015 for instance, Adidas entered into a partnership with Parley for the Oceans which resulted into an innovative shoe concept where waste products from the ocean are used to manufacture shoes (Bajpai et al., 218). The company also uses illegal deep-sea gillnets. Through such initiatives, the Adidas Company has shown support towards a clean environment movement by helping to conserve the seas.

Another way the company reaches out to the community is through fair employee treatment through the enhanced governance framework aimed at maintaining the human rights of the employees. Such initiatives include workplace standards, labor rights charter, and the Adidas Group Code of Conduct (Muntinga et al., 24). The company also sponsors various sporting activities including some of the most significant worldwide football clubs and associations.

Adidas chief competitors

Some of the top competitors to Adidas include Nike Inc., Callaway Golf Company, PUMA, and Fila among others. Nike is the number one footwear manufacturing company and the most popular in the whole world. Of all the discussions that ha...