CRM HELPS ADIDAS KNOW ITS

1. Adidas’ competitive forces and value chain model.

Adidas operates in the sportswear industry, which is highly competitive. Using the competitive
forces model, we can analyze the following:

a. Threat for new entrants: The sportswear industry has few barriers to entry, which means new
competitors can easily enter the market. But Adidas has established itself as a global leader with
a strong brand image and a loyal customer base, making it difficult for new entrants to compete.
b. Negotiating power of suppliers: Adidas relies on a global network of suppliers to source and
manufacture its products. The size and reputation of the company make it a great bargaining
power to negotiate good terms and build good relationships with suppliers.

c. Bargaining power of consumers: Adidas has moderate purchasing power due to new products
in the market. However, the company’s focus on customer experience and personalization
through CRM strategies helps differentiate its offerings and strengthen customer loyalty.

d. Threat of substitutes: While there are various substitutes available in the sportswear industry,
such as footwear, apparel and other accessories, Adidas' strong brand recognition, product
quality and continuous innovation help reduce substitution risk.

e. Strong competitive competition: Adidas faces stiff competition from other sportswear
manufacturers, especially Nike. Competition is driven by factors such as product innovation,
brand image, marketing campaigns and pricing strategy. Adidas distinguishes itself by
emphasizing customer relationships, personalized experiences, and digital marketing.

In terms of the value chain model, Adidas focuses on creating value through its primary and
support activities:

Primary activities:

Inbound Logistics: Global supply chain management to ensure timely delivery of raw materials.

Business: Manufacturing high quality sportswear and ensuring efficiency.

Outbound coordination: Distribution of goods through various channels, including physical

stores and e-commerce platforms.

Marketing and Sales: Use digital marketing, CRM, personalized experiences to attract and retain
customers.

Service: Provide customer service and support through a variety of channels including social
media, website, and telephone.

Support Services:
Procurement: Establishing relationships with suppliers to ensure high quality products.

Technology Development: Use of technologies such as Salesforce.com for CRM, marketing, and
e-commerce.

Human Resource Management: Recruitment and development of talented employees to drive

innovation and deliver a better customer experience.

Firm Infrastructure: Organizational structure, financial resources, and infrastructure to support

overall business management.

2. Adidas’s business strategy? Role of customer relationship management in that strategy

Adidas’ business strategy focuses on delivering the best possible customer experience and
emphasizing customer proximity. The company focuses on building strong relationships with its
clients and making personal connections throughout their journey. Adidas’ biggest store is
online, this ease customer-product engagement by comfortably navigating through the available
products while comparing prices. At this point, is where customer care services are offered to its
best. A good customer experience is key to every organization.

Customer Relationship Management (CRM) plays a key role in Adidas’ strategy. By leveraging
Salesforce.com’s CRM tools, Adidas can gain a comprehensive view of each customer across
multiple channels and touchpoints. CRM enables Adidas to collect and analyze customer data,
understand their preferences, and create marketing campaigns and offers accordingly.

CRM helps Adidas in the following ways:

Identify key customer segments: CRM tools enable Adidas to segment its customers and target
specific groups with personalized messaging and offers.

Develop strong relationships with customers: By capturing and analyzing customer data, Adidas
can understand individual preferences, behaviors, and needs. This knowledge allows the
company to connect with customers on a more personal level and build stronger relationships.

Creating differentiated experiences: CRM tools enable Adidas to create personalized

experiences for customers based on preferences, demographics, and communication channel
preferences This personalization increases customer satisfaction and loyalty.
3. How information systems support Adidas’ strategy

Information Systems play a key role in supporting Adidas strategy by providing the necessary
tools and services to manage customer relationships, create experiences, and enhance operational
efficiencies;

Here are some of the ways information systems help Adidas.

a. CRM System: Adidas uses Salesforce.com’s CRM tools to gain a comprehensive view of each
customer, capture and analyze customer data, and create personalized experiences. The CRM
system enables Adidas to track customer interactions, preferences, and purchase history,
enabling the company to deliver targeted marketing campaigns and personalized product
recommendations.

b. E-Commerce System: Adidas uses Salesforce Commerce Cloud to support its centralized e-
commerce site. This platform enables global design, supports multiple languages and currencies,
and provides customers worldwide with a seamless online shopping experience The e-commerce
platform helps Adidas capture consumer preferences and consumption behaviors role to improve
the supply chain and enhance the overall customer experience will be better.

c. Marketing automation: Salesforce Marketing Cloud allows Adidas to create and manage
marketing campaigns across multiple channels including email, mobile, social media, web etc.
The system includes integrated solutions for customer journey management, content creation,
data analytics and personalization. The marketing automation system helps Adidas deliver
targeted and timely marketing messages, increasing customer engagement and conversion rates.

d. Service and Support System: Adidas uses Salesforce Service Cloud to provide customer
service and support. The system automates service processes, streamlines operations, and enables
customer service personnel to access basic information and expertise. The service and support
program helps Adidas provide quality and convenient customer service across a variety of
channels, increasing customer satisfaction and loyalty.

e. Data Analytics: Salesforce DMP (Data Management Platform) enables Adidas to capture and
analyze customer data from digital activities across channels and devices Using data analytics,
Adidas gains insights into customer behavior, preferences, and trends so ho. This information
helps the company make data-driven decisions, improve products, and develop targeted
marketing strategies.

4. How using Salesforce.com make Adidas more competitive.

How it changed the way the company ran its business

Using Salesforce.com provided several competitive advantages to Adidas and transformed its
business operations in the following ways:

a. Single customer view: Salesforce CRM tools gave Adidas a unified and comprehensive view
of each customer across its channels. This enabled the company to understand individual
preferences, behaviors, and purchase histories, resulting in better customer segmentation and
more personalized experiences. A unified view of consumers has improved Adidas’ ability to
deliver targeted marketing campaigns and tailored product proposals.

b. Enhanced Customer Relationships: Salesforce CRM facilitated building strong relationships

with customers by enabling Adidas to capture and analyze customer data. This data-driven
approach allowed the company to connect with customers on a more personal level, building
stronger relationships and increasing customer loyalty. By using CRM tools, Adidas can tailor its
offers and communications to meet customers’ specific needs and preferences.

c. Improved business performance: Salesforce Marketing Cloud provided Adidas with an

integrated solution to manage marketing relationships, campaigns, and customer journeys
Platform's capabilities, such as email marketing, social media management and data analytics,
helped Adidas deliver marketing messages that aimed at everyone. This improved marketing
efficiency, increased customer engagement and increased sales.

d. Optimized customer service: Salesforce Service Cloud has enabled Adidas to automate the
service process, streamline business processes and deliver personalized customer support. The
platform’s features, including social media integration and serving mobile applications, made
customer service more efficient and convenient to deliver a personalized and convenient service
experience for Adidas to increase customer satisfaction and loyalty.
e. Global e-commerce implementation: Salesforce Commerce Cloud helped Adidas implement
centralized e-commerce sites globally. The platform helped Adidas provide a seamless online
shopping experience across languages and currencies. This implementation of global e-
commerce enabled Adidas to reach consumers globally, expand its market reach and increase
online sales.

f. Data-Driven Decision Making: Salesforce.com's CRM and data management tools enabled
Adidas to capture and analyze customer data, including online web interactions Leveraging data
analytics Adidas customer preferences, trends and market dynamics gained valuable insight into
the transaction around. This data-driven approach enabled Adidas to make informed business
decisions, optimize supply chains, and optimize marketing strategies.

5. Give an example of two business decisions that were improved by using Salesforce.com.

Two examples of business decisions that were improved by using Salesforce.com at Adidas are:

a. Product development and personalization: By leveraging Salesforce CRM and data

analytics, Adidas gained valuable insights into customer preferences, behaviors and
trends, this information enabled the company to make informed decisions data on
products and themselves. For example, based on customer data and feedback, Adidas
could identify popular colors, specific design elements, or emerging trends in the
sportswear market This knowledge helped Adidas develop products new or modified
existing ones to better meet customer requirements and preferences.

b. Marketing campaign optimization: Salesforce Marketing Cloud provided Adidas with

comprehensive marketing automation and analytics capabilities. The platform enabled
Adidas to track and analyze customer interactions, campaign performance and marketing
metrics. This data enabled Adidas to optimize its marketing campaigns by identifying the
most effective channels, messaging, and timing to reach its target audience. For example,
through data analytics, Adidas can identify which marketing strategies or campaigns
resulted in higher conversion rates or customer engagement. This knowledge enabled
Adidas to better allocate marketing resources, optimize targeting campaigns, and generate
better marketing ROI.