Archives: October 2014
Target Customers and Value Proposition
“Adidas Struggles in America: Too Much Fussball, Not Enough Football?”
One of the biggest sportswear company, Adidas dominates the Europeanmarket, but it is struggling to secure sales in the North American market. Since 1949, Adidas has implemented a focus differentiation strategy focusing on soccer and golf. Because of this strategy, Adidas enjoyed leading sales in regions where soccer was popular, including Europe and South America. However, to North America where other sports such as basketball is more popular, products offered by Adidas seem less appealing, especially with the presence of a strong competitor – Nike. In this context, Adidas’s strengths are also its weaknesses. They appeal to a specific group of customers, soccer fans and players, but this also limits them to that particular group. Threats, meanwhile, include rival companies including Nike, New Balance, etc., decreasing interest and demand in golf, and depreciating currency (rubles) that may curb revenue.In attempt to increase sales and to compete with Nike that takes up 95% of the North American market, Adidas plans to increase expenditure on marketing , which will help make adjustments to the value proposition sector. While it may be profitable to attract North American customers, I find it unecessary to expand Adidas’s focus on soccer gear to basketball or other sports gear. On the contrary, I think it is more effective to continue to focus on soccer, as it is still the most popular sport throughout the world, and develop and offer products that will increase demand for soccer gear instead.
On Relationships between Companies and First Nations
“Tsilhqot’in set to declare site of New Prosperity mine a tribal park” http://www.vancouversun.com/news/metro/Unilateral+park+declared+Tsilhqot+includes+Prosperity+mine/10192766/story.html#ixzz3FShRYWIF
“Taseko’s New Prosperity mine challenged by Tsilhqot’in park plan”
Facing numerous obstacles to open gold and copper mines, Taseko encounters yet another obstacle in launching their New Prosperity mine, as the Tsilhqot’in First Nation has declared to incorporate designated mining lands into a new tribal park to preserve cultural heritage and natural habitats. Similar to recent opposition to the Northern Gateway project, Tsilhqot’inopposition poses problems for Taseko in sectors including the company’s key resources and partner, as the mine is located near areas of Tsilhqot’in lands and the Tsilhqot’in Nation has been long against the New Prosperity mine as a major stakeholder. Therefore, it is essential for Taseko to perform key activities to negotiate with the Tsilhqot’in Nation in order to progress in their business. However, one of the primary concerns of the Tsilhqot’in Nation, besides the lack of respect and involvement in planning the project, is permanent environmental damages that can be brought to lakes and ponds in the area. Prior to the declaration of establishing the new tribal park, the New Prosperity mine had been rejected by court several times due to environmental hazards. Consequently, another key activity would be to address these environmental concerns through investigation and reports to ensure that harm to natural habitats is minimized. Despite the many activities that can be done to win the support of Taseko’s key partner, one issue remains. Although establishing mine will bring considerable profit, it will inevitably impact traditional lifestyle of the First Nations people, which becomes something that will be difficult for First Nations to compromise. According to Taseko’s vice-president of corporate affairs, Brian Battison, details on what the park will constitute and what may or may not be allowed is still unknown. As of now, what will become of the New Prosperity mine is still a question, but it will largely depend on government support of the project, court ruling for or against it, and consent of First Nations.