Cisco Supply Chain

Exc summary

The sports industry is highly competitive and is characterized by large number of competitors and price based competition. Factors like technology, quality, fashion and the stars who endorse the products are drivers of growth in the industry. In this industry Nike and Adidas are the key players and both hold strong supply chain structures to which keep them above the rest of the competition.

Adidas makes high quality, user-friendly products with high aesthetical value. It targets customers who are willing to pay a premium for the best quality and are looking for the best experience. Yet also produce a range of lower end products to satisfy every person’s needs from professional athletes to young children. Adidas makes use of scale economies and has outsourced its manufacturing facilities. It keeps it suppliers in tight control and is able to get huge discounts because of the volumes. Forecasting is an important aspect at Adidas as well, and it can forecast the demand for each store and plan production schedule accordingly. Due to the large amount of product lines forecasting is very important as they take into account the different seasons and demand for products at specific times throughout the year. It spends heavily on research and development to improve technology, the product performance and bring frequent launches to make sure that their product is the latest and best for whatever purpose it holds.

Adidas has huge variety and mass customization yet offers products with a very noticeable point of difference to that of their competitors. Adidas provide top quality products in order to maintain long term relationship with customers, once customers experience high quality it very often leads to a sense of loyalty and continued/repeat purchases due to the high quality supplied.

Through continued research and development Adidas are able to bring new and current product lines into the markets which not only match and rival their competitors but...