adidas bcg - 2242 Words

DEFINITION BCG MATRIX Boston Consulting Group (BCG) Matrix is defined by the following authors as follows: Table 1 Definition of BCG Matrix Pearce (2013) David (2012) BCG Matrix is an approach pioneered by the Boston Consulting Group that attempted to help managers â€Å"balance† the flow of cash resources among their various businesses while also identifying their basic strategic purpose within the overall portfolio. It is also known as â€Å"portfolio techniques†. BCG Matrix graphically portrays differences among divisions in terms of relative market share position and industry growth rate. It allows a multidivisional organization to manage its portfolio of businesses by examining the relative market share position and the industry†¦show more content†¦STEPS IN DEVELOPING BCG MATRIX There are 5 steps in developing the BCG matrix. The steps are as below: Step 1: Choose the unit Step 2: Define the firm’s market share Step 3: Calculate the relative market share Step 4: Find out industry growth rate Step 5: Draw the circle in a matrix Step 1: Choose the unit. BCG matrix can be used to analyze separate business units, separate brands, products or a firm as a unit itself. Choose the unit that to be analyzed such as product of the firm, firm’s geographical area, customer segmentation and so forth. Unit that will be chosen will have an impact on the whole analysis. Therefore, it is essential to define the unit before starting the analysis. Step 2: Define the firm’s market share. After the unit has been chosen, define the firm’s market share based on the unit. The market share of the firm could be calculated based on this formula: Step 3: Calculate the relative market share. The relative market share can be calculated in term of revenue ormarket share. It is calculated by dividing own brand’s market share (or revenue) by the market share (or revenue) of largest competitor in that industry. The formula to calculate: For example, if thelargest competitor’s market share in smartphone industry was 25% and Apple firm’s brand market share was 10% in the same year, Apple relative market share would be only 0.4. Relative market share is given onShow MoreRelatedAdidas: Will Restructuring Its Business Lineup Allow It to Catch Nike?1072 Words   |  5 PagesAdidas: Will Restructuring Its Business Lineup Allow It to Catch Nike? I. CASE OVERVIEW For almost two decades throughout the 1960s and 1970s, Adidas became the best-selling brand of sporting goods in the world. Founded in 1920 in Herzogenaurach, North Bavarian, Germany by Adolph (Adi) Dassler, Adidas then well known for pioneering athletic footwear with kind of revolutionary invention in athletic footwear and equipment in which Adi Dassler alone accumulating 700 patents and property rightsRead MoreAdidas Mission Statement1508 Words   |  7 PagesStudent: Hussein Suleiman Studentnumber: 513056 Company: Adidas Date: 24-09-2010 Course: Management and Organisation Lecturer: Drs. J.A.A. Kloosterman Day of class: Thursday Class: 3IBM1                Student:   Hussein   Suleiman,   Studentnumber:   513056,   Group:   3IBM1   Company:   Adidas                                                 Adidas Adidas is a name that stands for competence in all sectors of sport around the globe. The vision of companyRead MoreNike/Adidas: Key factors that influence success of Nike and Adidas, Swot Analysis.2076 Words   |  9 PagesBrand awareness is one of the biggest assets that athletic shoe companies as Nike, Adidas, Reebok, Fila can have. Brand awareness always brings a considerable advantage in getting consumers attention and making a good place in that shoe market. If a well established brand name effectively mentions the messages of quality and dependability. Thus consumers will automatically go to that brand relying on the image that has been created when they dont have time to shop around. Athletic shoe manufacturersRead MorePest Swot Analysis of Adidas2035 Words   |  9 PagesYou are consultant of the company. PEST/SWOT etc ----------------------------------- Introduction Adidas is a company that manufactures shoes and sport apparel. The founder is Adolf Dassler who is German. The name created by combination of the name and surname Adi Dassler, who started producing shoes in 1920s with the help of his brother Rudolf Dassler. That make costumer, to recognize Adidas is three parallel stripes of the same color. Slogan: â€Å"IMPOSSIBLE IS NOTHING† 1. History 1949-2005 DueRead MoreAdidas2026 Words   |  9 PagesIntroduction Adidas is a company that manufactures shoes and sport apparel. The founder is Adolf Dassler who is German. The name created by combination of the name and surname Adi Dassler, who started producing shoes in 1920s with the help of his brother Rudolf Dassler. That make costumer, to recognize Adidas is three parallel stripes of the same color. Slogan: â€Å"IMPOSSIBLE IS NOTHING† 1. History 1949-2005 Due to the death of Adolf’s son (Horst Dassler), the Company was bought in 1990 by BernardRead MoreAnalysis of Nike by Porter Five Forces Model1430 Words   |  6 Pagesthe World Champions – and earn bragging rights for four years at least. It was not only a world war among 32 national teams, but also a white war among several major sponsors. Concentrating on those big-name stars, spectators would easily find that Adidas and Nike became the largest winners among various brands, obtaining the sponsorship of 12 and 9 among the 32 teams respectively. Coincidentally, in the current athletic footwear market, Nike control the largest market share though facing enormousRead MoreSportswear and Nike Marketing Approach Essay2845 Words   |  12 PagesTable of contents Introduction 04 Sports wear market 04 BCG Matrix 06 Ansoff’s Matrix 08 Conclusion 12 References Read MoreNikes Market Audit2227 Words   |  9 PagesFactor | organic growth as well as by acquisition, also brand name, goodwill- therefore there is a match is CSF to succeed | Change of Focus | Maybe have to target marketing in a different way | * Portfolio analysis in current product (BCG Matrix) The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a company should have a portfolio of productsRead MoreThe Analysis of Nike in Athletic Footwear Market Based on Porter’s Five Forces Model3132 Words   |  13 Pagesare just to keep the dogs as the BCG matrix shows(BCG Matrix, 1968). A brief intimateness can be drawn up that the destructive power outside the footwear industry hardly exists and can seldom influence the market share and profitability of Nike. 2. The rivalry among existing competitors According to the Commerzbank Equity Research(28th Feb,2008), NIKE was the clear market leader, with 31% of the global athletic footwear market in 2007, followed by ADIDAS and PUMA, occupying 16% and 7%Read MoreUnilever Parenting Diversification Trough Forward Integration in the Car Industry3574 Words   |  15 Pagesexploit their brand. On the other hand the Adidas company who core competence is the manufacturing of the product and its distribution serves well to the business decision. On Porsche side they are able to use their name and create new products, on the other hand Adidas has a new market to open with this introduction. This joint venture leaves Porsche free from investing in manufaturing facilities and its distribution due to the fact that they will use Adidas. x Question (iii) Evaluate whether `diversification