Advertising and media in the marketing environment Lab Report

Advertising and media in the marketing environment - Lab Report ExampleThe 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 get Power of Buyer Buyer power in the industry has weakened due to individuality of customers. unmarried 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 athletic wear in counties like USA, UK and other developed countries but hire out manufacturing process to developing countries such as China, India and South Korea. Part ial control over forward and backswept integration of value chain decreases power of retailer but increases power of supplier hence it croup be said that supplier power is strongNew entrants need to form a new(a) company and qualify their business in order enter sportswear industry. New entrants need to establish strong statistical distribution channel and sustainable logistics framework. New entrants need to invest huge amount of money on view up logistic division while revenue growth is not very exciting. Risky causation of business and high start up cost have created high entry barrier for new entrants. (Source Marketline, 2012) Threat of Substitute Online retailers such as eBay, Amazon has emerged as major competitor for brick and mortar sportswear retail channels. In many cases it has been observed as e-business companies are selling mark sportswear to customers without mentioning mark-up variety and technical knowhow. This situation creates negative image about the bra nd such as Adidas, Nike or Puma in the mind of consumer hence it can be said that threat of substitute is high. (Source Marketline, 2012) Competitive argument Companies like Nike, Puma and Adidas are trying to compete with each other at every formulation of sportswear products. Presence of online and offline retailer has intensified the completion while switching cost is low for customers because branded companies do not provide incentives to them. Based on the situation it can be inferred that competitive controversy is high in the industry. (Source Marketline, 2012) PESTLE Political Environment Adidas need to work in coordination with Political achieve Committee (PAC) in order to handle government issues of particular country (Curtis, 2010, p. 43). Economic The world is departure through economic crisis such as Eurozone sovereign debt problem and recession. These two events have dampened the growth of parsimoniousness (Lynn, 2010, pp. 94-104). Adidas need to