Adidas Needs a New Home

Location, location, location.

Real estate agents know the importance of this, but operations managers need to too. When you think of athletic apparel, you’d likely think of Nike and Adidas. My high school track team loved debating over the superiority of the two brands. Somehow, Nike always emerged victorious.

Adidas’s Headquarters in Herzogenaurach. Image Source: Gear Junkie

The article suggests this is because of their headquarter locations. Nike is situated in trendy Portland, Oregon, while Adidas is by rural Herzogenaurach, Germany. Adidas needs fresh talent in the design, marketing, and digital departments, but who wants to move to the middle of nowhere? Because it can’t hire new innovators, Adidas has failed to join marketing trends, causing them to fall to No. 3 behind Nike and Under Armour.

Image Source: CNJTC

Operations managers oversee and design a company’s production processes, so their job also consists of deciding where to place distribution centres.  Adidas seems to understand this now, as it is updating its Herzo “World of Sports” campus and establishing a creative studio in New York.

This likely isn’t enough, though. Adidas must incorporate its brand into an up-and-coming city, like how Nike infiltrated Portland and Eugene (Track Town USA) by partnering with the University of Oregon. Evidently, Adidas shouldn’t try dethroning Nike on the track and field ladder. Instead, they could secure the top spot on another ladder like soccer, by investing in studios and distribution centres built in the heart of the world’s greatest soccer towns.


References:

Article: http://www.businessinsider.com/r-adidas-fights-to-draw-top-talent-to-hq-in-sleepy-bavarian-town-2014-9

Text Hyperlink: http://shop.goducks.com/

Image Sources: http://gearjunkie.com/images/7212.jpg

http://cnjtc.com/wp-content/uploads/2013/04/adidas-soccer-shoe-1080p-hd-sports-wallpaper-.jpg

 

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