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Advertising and media in the marketing environment - Lab Report Example

Author : yjaskolski
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Summary

This report will try to throw some light on global advertising campaign themed ‘‘Impossible Is Nothing,’promoted by Adidas in 2004.Trend Adidas is iconic German multinational company specializes in sports apparel, footwear and accessories…

Extract of sample
Advertising and media in the marketing environment

The company is headquartered at Herzogenaurach, Germany. The company was founded by Adolf Dassler in the year 1924. Market capitalization of the company is $13.30 billion as of 2011 (Yahoo Finance, 2012). Porter Five Force Purchasing Power of Buyer Buyer power in the industry has weakened due to individuality of customers. Individual consumers lack in financial strength to affect business strategy of large manufacturers such as Nike, Puma, Adidas and others. Buyer power is low due to following factors: (Source: Marketline, 2012) Power of Supplier Sportswear industry is complemented by three inter connected themes such as innovation, research & development and adoption of style trend. In many cases it has been observed that Nike and Adidas design their sportswear in counties like USA, UK and other developed countries but subcontract manufacturing process to developing countries such as China, India and South Korea. Partial control over forward and backward integration of value chain decreases power of retailer but increases power of supplier hence it can be said that supplier power is strongNew entrants need to form a new company and diversify their business in order enter sportswear industry. New entrants need to establish strong distribution channel and sustainable logistics framework. New entrants need to invest huge amount of money on setting up logistic division while revenue growth is not very exciting ...
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