By the end of 2019, Adidas was enjoying a time of sustained growth and profitability. However, in 2020 the COVID-19 pandemic greatly affected the company's operations and results, leading to a great degree of uncertainty. The CEO, Kasper Rørsted, then had to decide on strategic initiatives to keep Adidas growing in a post-COVID-19 world.
Niccolò Pisani and Ornella Lupoi
Harvard Business Review (IM1064-PDF-ENG)
September 02, 2020
Case questions answered:
- What are the characteristics of a sales-driven company or marketing-driven company? What is the focus of each? How does each pivot to the digital economy?
- To what extent has digitalization changed retail? How has digital disruption changed the retail environment? What is the future?
- Analyze to what extent to which the pandemic has revolutionized retail operations. Cite specifics. What is the sweet spot?
- How should Adidas draw closer to Nike? Assess brand strategy, brand assets, global focus, retail evolution, etc. How will it run faster in the post-pandemic era?
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Adidas: How To Keep Running Fast in a Post-COVID-19 World? Case Answers
1.) What are the characteristics of a sales-driven company or marketing-driven company? What is the focus of each? How does each pivot to the digital economy?
A corporation that is sales-driven places a strong emphasis on producing income through sales activities. Such a business places a strong emphasis on growing its clientele, gaining market share, and maximizing earnings.
The capacity of a sales-driven business to produce money and grow its market share serves as a barometer of its performance.
On the other hand, a corporation that is driven by marketing prioritizes forging close bonds with its clients through forging a powerful brand identity and an emotional bond with its target market.
A marketing-driven business aims to establish a devoted customer base that will stick with a company’s goods or services despite competition. The strength of a marketing-driven company’s brand and client loyalty are key indicators of success.
To be relevant and competitive, businesses that are focused on sales, as well as marketing, must make the shift to the digital economy. Consumers are increasingly using Internet resources to investigate and buy goods and services in the digital age.
In order to effectively reach and engage with their target audience through digital platforms, businesses need to have a strong online presence.
This necessitates a shift in emphasis for sales-driven businesses from traditional sales channels to online sales channels, like e-commerce websites and mobile apps.
To increase traffic to their online sales channels, they must also spend on digital marketing tactics like search engine optimization (SEO) and pay-per-click (PPC) advertising.
The shift to the digital economy for marketing-driven businesses necessitates a focus on creating and upholding a strong online brand image and emotional bond with their target market.
This could entail using data and analytics to get insights into consumer behavior and preferences and investing in digital content marketing, social media marketing, and influencer marketing.
To sum up, both sales-driven and marketing-driven businesses need to change their focus to online channels and invest in digital marketing techniques in order to compete in the digital economy.
The success of these businesses will depend on their capacity to successfully engage with and reach out to their target market through these channels, as well as on their ability to develop and preserve a strong online brand identity and emotional bond with their clients.
2.) To what extent to which digitalization changed retail? How has digital disruption changed the retail environment? What is the future?
The retail sector has seen…
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