Name: Myra N.

Domingo Subject: ENTREP 3108

Section: Entrep 3 Assignment/Activity No. 4, 5 & 6

Innovation in Adidas: Company Case Analysis

Guide Questions

1. With the aim of the Adidas Company on sustainable product design, (a) what were the
innovation strategy milestone/s of the company in producing their new shoes/products?,
and (b) what are the identified environmental aspects and impacts of their products and
were these addressed in their innovative strategies in producing their new shoes/products?

Answers:

(a) For the most part, sports have been highly alluring, and as they have grown in
popularity over the years and businesses have begun to take an interest in them, however,
despite this chance, we must not ignore the fact that resources are in risk as a result of man-
made problems. For this reason, the Adidas company has developed a comprehensive
strategy to sustainably address the issues that affect both people and sports. According to
them, “Being a sustainable business is about striking the balance between shareholder
expectations and the needs and concerns of our employees and consumers, the workers in
our supply chain and the environment. We believe that acting as a responsible company
will contribute to lasting economic success.” They make sure to start with the business
issue that has received the least attention before moving on to other milestones. They
evaluate many viewpoints that influence day-to-day operations as part of their open
engagement with stakeholders as part of their innovation approach. Additionally, every
single piece of raw material is important to the business. As a result, they must be extremely
careful and consistently manage research and development activities in order to meet
consumer demand while also minimizing the amount of waste materials they may use,
which could make a significant difference. They want to reduce and simplify their products
while also taking into account the needs of athletes, who are their target market.

(b) Due to human activity, which consumes a significant amount of garbage and
raw materials, environmental resources have been drastically declining. The environment
has been harmed in the process of creating the necessary materials while the firm continues
to supply the market with massive amounts of merchandise. Adidas Company has been
aware since the very beginning, they try to take action on assessing the environment and
the social impact to reduce the negative effect to majority. The Adidas company, however,
has been paying attention to this issue and developing a strategic plan that minimizes
materials and simplifies their product for best performance while engaging to Sustainable
Development Goals (SDGs), which are a global pledge to advance prosperity for all while
preserving the environment. According to the Adidas Company Website, they are
subsequently able to integrate prioritized SDGs with both human needs and concerns and
 environmental objectives relating to material selection, production, use, and disposal of the
product. Analyzing Adidas' creative business approach, it became abundantly evident that
they were meticulously aligning their operations with environmental protection and
preservation. It was crucial for the company to reduce the number of materials used in
making shoes, yet despite this challenge, they continue to support ecologically responsible
innovation processes.

2. Did the Adidas Company succeeded in their product and service innovation (PSI),
specifically in (a) the design of their running shoes/products sold in the market and (b) their
external coordination? Yes or no, why?

Answers:

(a) Adidas' main goal was to determine the most crucial element in the world of
sports so that their business could help to meet consumer demand for high-quality sporting
goods while also preserving environmental safety. In fact, the Adidas company has
distinguished itself in the industry by offering the greatest product at the highest level of
performance. Adidas has established itself as a leading brand in the sporting footwear and
apparel market. According to the written article by Michael Charboneau and the Runner's
World Editors, Adidas athletic shoes have reportedly been tested by over 350 wear testers,
including runners of all ages in order to evaluate them. The interaction between the testers
and the runner's global staff did lead to a successful outcome. The materials that adidas
chose to create their shoe product allowed for flexibility and stability, allowing the tester
and runner's feet to move more comfortably and adapt to the ground as they ran. The
aforementioned Runner's World evaluation shows that adidas shoes were conscientiously
invented to offer excellent responsiveness, stability, and flexibility to a person wearing it.
Whichever adidas footwear the consumer chooses; they can be confident that it will always
have the highest level of quality and performance.

(b) We can definitely see that adidas has been very cautious of anything that could
enter or affect their operation based on their supply chain through this network of activities
outside the organization that can have an either direct or indirect impact on the operation.
They are able to interact, consider, and identify with their surroundings while thinking
creatively. Adidas provided evidence for this claim by asserting that they have a multi-
level monitoring and enforcement procedure in place, which includes the use of grading
systems for the evaluation of their suppliers, on their website page titled sustainability
supply chain. If they carry out this type of activity successfully, it will have a direct impact
on their decision regarding whether or not to engage in further negotiations with their
suppliers. The staff and top management of the adidas company also make sure to be able
to monitor the consumer demand, which is constantly changing as the economy changes
over time. Adidas makes an effort to ask questions repeatedly in order to determine what
is most needed and to be flexible in producing the greatest possible product that will be
sold on the market. In addition, the provided brief movie provides an overview of the
company's goals, showing how they continuously adapt to the outside world and how each
design enhances the lives of its users by promoting comfort, confidence, and increased
movement. By focusing all of their efforts on achieving what is required in society and,
more significantly, for individuals, Adidas has thereby attained the primary value of their
outward coordination.
References

Charboneau, M., & The Runner’s World Editors. (2022, Febuary 18). The 7 Best Adidas Running
Shoes. Runner’s World. https://www.runnersworld.com/gear/a22170339/best-adidas-shoes/

Our Approach- Adidas Annual Report 2019. (n.d.). Retrieved from https://report.adidas-
group.com/2019/en/group-management-report-our-company/sustainability/our-approach.html

Supply Chain. (n.d.). Retrieved from https://www.adidas-group.com/en/sustainability/social-

impacts/supply-chain/