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Impact Of E Commerce On Adidas

Paper Type: Free Essay Subject: Information Technology
Wordcount: 3625 words Published: 11th May 2017

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The next of kin of Adidas registered and laid a foundation named after Adi Dassler in 18th August, 1949. According to a source, removable studs were athletes, footballer footwear choices. Its first soccer appearance was the miraculous victory of Germany against Hungary named as ‘Miracle of Bern’ in 1954. The presiding years were a talk through aiding an unconventional performance, commitment that desire athletes both from indoors (table to lawn tennis) and outdoors (short to long jumps) etc events. A remarkable high jumper Fosbury Dick stepped into lime light in Adidas foot wear world in the late 1960s.

The company has progressed from the death of Adi Dassler to the era of his family members including wife, son and daughters 1980s. with new management in place, where the company CEO became the driving force with Robert Louis Dreyfus reshaping its early functions from being manufacturing and sales to marketing company in 1990.

This transition processed to a public liability company, floating on Frankfurt and Paris Stock Exchange in 1995. While in 1996, it achieved a 50% apparel sales increase which recorded its splendid year. As in December 1997, Adidas acquired a Salomon Group (Bonfire, TaylorMade, Salomon and Mavic) renaming as Adidas Salomon AG. The momentum of the new brand started gaining ground with a noticeable digit during the first half of 1999. Remarkably produce efficiency programmes and ambitious growth in 2000. The Olympic Summer Games and the European Soccer Championship, where Ian Thorpe takes three gold medals, contribute to the company’s growth.

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In January 2006, Adidas bought over Reeboky a well known sporting goods industry as its competitive worldwide platform while beginning wider range of product, stronger presence and dominance across athletes, teams, leagues and events. In May the same year, Adidas was renamed from Adidas Salomon AG to Adidas AG were her core strength was narrowed in the apparel, golf category and athletic footwear market.

How it used to do business and how e-commerce has transformed it’s method of working.

Adidas earlier business days used to be from factory to warehouse and distributing to different locations, supplying to larger shops. Then, they advertise their goods and service via TV, Radio, and Billboards. But today e-commerce has changed it all by emerging innovation of ecommerce interest. A lot has seen the profit made from this technology and more are still on its way while transforming the pattern businesses transact with each other, in the awake of globalization

Online market has not risen to a new height with the significant growth of e-commerce. More also, there has been a communication aspect of customer service to consider, by e-commerce, they found a way by communicating to their customers in electronic. Companies offer a higher percentage of independence for customer products and services of which its top notch deliverable is communicated. So, in that way web and the internet have made it easier for their customers to see what product they want online and order and pay online.

The E-commerce Advantages and Disadvantages on Adidas.

Customers’ empowerment: It is a trend that will continue with greater broadband penetration. The adoption of mobile browsing further increases accessibility and the use of social networking sites. This connectivity between consumers offers marketers’ the opportunity to leverage a growth channel and face the disturbing reality that brands are no longer solely in charge of the information consumers have available to them. Consumers are undoubtedly firmly in control, and with this empowerment have come a greater sense of expectation around service levels and value, and also gives customer wider range to choose from.

The objectives to reach diverse people, culture and region promote the sensation around a defined market niche becomes the primary focus of marketing and communication. Most marketing companies communicate with prospective customer in other to establish relationship that may or would result in lasting trust by volunteering free or a trial based product that will build expected brand awareness. Marketing communication maintains customers trust by providing information and reinforcing a purchase habit about the brand benefit. The main objective is based on maintaining a database of customers that would patronize company product and reinforce relationship for prospective retailers and customer base.

And product range is where the customer can select online what good and what’s not good for and decide what to shop online.

Price is where you can check on the favourable goods which is lower is a different product and different company by differentiating which cheaper and better product to buy from.

Many Associated costs both in financial and social terms.

New skill sets: By increasing awareness, technology and globalisation demand with a new approach from the learning and development specialist. The challenge today is about creating an effective environment in which learners develop the relevant knowledge and skills. This requires a new mindset and skill set from learning and development specialist. Keeping up with technological changes and reviews the case for a global convergence of approach to learning, training and development and determines the extent to which the national cultural differences matter.

Retraining staff: By giving employees renewed skills through retraining can be of benefits to them as well the company. This also means their employees are tooled up, which is always of benefit to the company and facing the world which is changing all the time. The present job market requires people to constantly need a portfolio of skills, which means turning a boost for staff if they are given retraining by their firm.

Positions downsized or eliminated: Downsizing simply means lying off employees. Management staffs discuss in team determining the cost needed to reduce the expenses and what it takes to secure a high financial reserve. For these very reason downsizing occur, it is normally whereby it is the main fact that fewer employees are necessary to maintain a successful operation, and in many cases where technological advance or breakthrough makes it possible to replace a previously human job. It can also be caused by market or change in government policies which force corporate executives to make coinciding decisions regarding their staff. More also, the major problems in today’s business world are the salaries being paid to the workers, since employers are not paying their workers high wages, the workers have little to put back into economy. This forces the companies to downsize to keep from going under.

What risks both social and financial the company incurred in introducing an e-commerce system to an organisation.

Talking of strategic risks,, there are also many practical risks to manage which if ignored, it can lead to bad customer experiences and bad news stories which lead to damage to the reputation of the company. However, if the customers experience a very bad service, and stop using it, and switch to other online option. Experience which can include the following:

. Hackers penetrating the security of the system and stealing credit card


. Problems of fulfilment of goods ordered online, meaning customer

orders goes missing or is delayed and the customer never returns.

. E-mail customer-service enquiries from the web site don’t reach the

right person and are ignored.

. Web sites that fail because of a spike in visitor traffic after a pea-hour

TV advertising campaign.

. Involve in Potentially breaking privacy and data protection laws.

The impact that e-commerce has had on its consumer.

When exchange of money for goods services happen within or as a transaction between two or more people, its normally done in actual store through business making in person. Electronic commerce or e-commerce as it is widely known suddenly became much more common place, the ability to make a purchase solely on online without having to leave the home was a new idea that has since changed the face of business. Websites such as Amazon.com and Ebay.com were pioneers in this field.

In this present days, there are lots of e-commerce websites that people can purchase items from, everything from books and clothing to groceries and pc, tv, phones can now be bought through a website, it all have an impact on economy. By servicing making a doctor’s appointment can be done through the internet. People can now shop online in the privacy of their own homes without ever having to leave. Using ATM makes it easy for withdrawing cash, and blog for comments. E-commerce has also made it easy for geographical reach, and also can help on online auction.

How the company met the challenge of new technology.

We can say it is all about improving performance, they explore new processes and technologies when environmental considerations comes in, then the company’s team identifies the performance enhancing technology which allows them to build to build the high performance equipment in the most environmental friendly way.

There are ways the company met the environmental issues, by change of infrastructure, environmental adaptation, how the component is made and the choice of materials. This is where the company will explore if the component can be thinner, using the less materials means, less waste, less embedded carbon. The component can be made from a lighter material, then that will also reduce carbon emissions, making them for a lookout for bio-based alternatives.

Lastly, their current development involving the amount of glue used has been reduced by using laser welding or mechanical locking design, thereby reducing emission

What security issues it encountered.

Technology: Faces the problems of hackers which break into the entire networks using unsecured wireless devices or access point. Unauthorized users can piggyback onto unsecured networks to use the bandwidth to perform illegal activity and steal sensitive data. Hackers can flood the wireless network with data to make it unusable.

Financial: The financial security issues which are complying with the respective applicable laws and regulations. Not ensuring full, fair and accurate, timely and comprehensible disclosure of information in reports, documents and all other publications prepared by them. Not ensuring the timely and accurate documentation of all business transactions in the Adidas group, and that all the assets and resources used by belonging to or entrusted to the Adidas group, are handled responsibly. By not maintaining and share the knowledge required for dealing with financial matters.

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Physical: In a business environments, physical security of the server maybe lacking or even nonexistent, they encounter problems with employees who steal or sabotage company data, with all the added risk of the network based attacks, the sever will be subjected to connecting it to the internet, keeping the server secured is more of a challenge. Like file security, share security, and password security. Documents which also commonly encountered security problems which can also use troubleshoot and resolve the problems quickly. Though with the password, file and network policies in place to secure access to the server, there is no substitute for solid physical security of the server, if anyone, thief or employee, has physical access to the server, company data can be deleted, compromised, or stolen.

How it was able to take advantage of new distribution and sales channels.

The function is organised in three distinctive channels, wholesales, retail and e-commerce. By creating business models, their aims are to service multiple customer and consumer needs to fully leverage brand potential, be more responsive to market developments and manage channel synergies by establishing best practices worldwide. They based on availability, convenience and breadth of product offering, as a result, continuously refining the distribution proposition with a strong focus on controlled space includes:

. Own-retail business

. E-commerce

. Mono-branded franchise stores

. Joint ventures with retail partners

. Co-branded stored with sport organisations and brands

To increase the global brand presence and ensure further growth of our business, their global sales function has set up a comprehensive initiative called integrated distribution roadmap. The initiative encompasses a joint approach between the three channels to identify where they want their brands to be represented and in which distribution format in key markets. The initiative will allow us to define how best to capture the consumer in the biggest and most attractive cities around the world without cannibalising the brands and distribution mix. The roadmap is designed to ensure market share growth in underpenetrated affluent cities.

Examine what impact that e-commerce has had on the business.

The impact of e-commerce on the business has been huge success by enabling businesses and consumers to connect with each other to exchange and share information anyway anytime. Has also made an impact on warehousing space reduction, wider range of customers, more commendation, stock control, stock/share trading. Establishing an online presence to maintain their competitive edge, along with high speed internet connections, the internet has become an essential tool for any business to compete domestically of globally. Businesses are developing web sites to provide their consumers and business partner with information.

Show specific reference to increased competition.

Several competing firms which are fiercely competing with Adidas which include Nike, Umbro, Puma, Fila, Reebok and Fortune Brands Inc. Adidas did ensure that their goods are high quality at a reasonable price in order to keep the market share.

Lower overheads/increased sales etc.

Financial expenses income up: Increased income of 28% to €133 million in 2010 from €19 million prior year, mainly due to an increase in interest income as well as positive currency exchange rate effect. The sales development is driven by the positive rising in consumer’s confidence as the global economy continues to improve.

Financial expenses decrease: Financial expenses decreased 34% to € 113 million in 2010 (2009: € 169 million). The non-recurrence of prior year negative currency exchange rate effects as well as lower interest expenses contributed to the decline.

What legislation both old and new it had to deal with.

Trademark: Its logos (three strides, the globe and trefoil devices), not limited to mark word as Adidas alone but all included, are registered trademarks of Adidas, unless state otherwise including affiliates. Not to use, copy, reproduce, republish, upload, distribute, modified and post transmit in any form from Adidas trademarks, without Adidas prior consent neither advertisement nor publication is permitted even though it might pertain major distribution gains on site materials. In any external internet site is the creation of links, hypertext, links or deep links between the site and other internet site is prohibited without the express consent of Adidas. Thus, this includes links to partners that may use Adidas’ logos as part of a co-branding agreement. Although Adidas seeks to protect the integrity of its site, the site can link to have their own separate privacy policy but Adidas is not responsible and cannot be liable for the content and activities of these sites.

Copyrights: Adidas remains the sole owner of entire content contained in the copyright portfolio. Only if the specific or indicated documents within the site state otherwise but you remain unauthorized to print, download, audio, document, view, play, reproduce, license, produce, transfer or sale any content, but you may be authorized to view, play videos or audio found within the site information, personal and non-commercial purposes only. Nevertheless, if authorized under the law relating to copyright, you may not reuse any Content without first obtaining the consent of Adidas.

In downloading software applications such as; videos, wallpaper, icon and screensavers etc. from the Site, these software, includes any files, images incorporated in or generated by the software, and data accompanying the software are licensed to you by Adidas. Adidas does not transfer title to the Software to you. You own the medium on which the Software is recorded, but Adidas retains full and complete title to the Software, and all intellectual property rights therein. You may not redistribute, sell, decompile, reverse engineer, disassemble, or otherwise reduce the Software to a human-readable form.

Differing countries regulations and legislation:

It’s a world of different countries with different rules, regulations and laws, within each country rules, regulations and laws for that country apply. Your own country’s legislation does not apply to any other country. And another country’s legislation does not apply to your country. Different countries have different rules. It’s a way of country of origin to differentiate the product. More also, it’s the requirements for a country of origin markings which are complex and depend on import country requirement for disclosure is essential too. While so many product made within European Union carry the marking “Made in EU”. Shipping products from one country to another will have to be marked with the country of origin, and country of origin trade preference programs, antidumping and government procurement.

What monopoly powers it had to deal with both within its own market and issues affecting it.

It had to deal with control and without any competition, since they have other competitors; it has to deal with price control. Like the Microsoft which is an example of monopoly, using its power in one area to gain market share in another area. Because it had a monopoly for web browsers Controlling different stages of production, new web browsers were at a disadvantage because it was too much effort to change from the wed default browser.

Show how e-commerce has opened up new lines of communication within the company.

E-mails: Electronic mail is a message sent across through the Internet, or a system for transferring messages between computers, mobile phone or other communications upload on the Internet. The time scales high when email servers are networked to all computers in big medium size company, the server have gateways which computer systems or networks enable all users to send information anywhere/anytime to any system in the world. All internet service provider (ISP) and online services enable rich messaging experience.

Text: It’s a fast way of communicating to customers and getting feedbacks, it’s a speed way of send sales promotions, confirmation of orders and confirmation of payments.

Mobile phones: Which is known as Scan2buy, which is mobile phone services for e-commerce for company to maximise their profits and move into the growing mobile phone ecommerce market. Can also be used for of payment, its in operation in Japan, which helps customers to make purchase or transfer using simple text messaging on their mobile phones.

Pagers: It’s a product with a services and business communication solutions, by enhancing collaborative sharing of information in a grid pattern especially when the issue of e-commerce whose pivot lies on a very secure communication channel and data transmission layer for organizations reputation.

E-Newsletters: This is a way for communication, to reach out to the customers, to make them aware of the company’s product or services and to give them reason to buy the company’s product. It’s a type of communications includes the company’s brochures and various forms of advertising, contact letters, websites and anything that makes the public aware of what the company do.

Social networking: Social network is based on a social structure through internet-based social networking system through variety of websites that allows users to share content and interaction around similar interest. It has created a great opportunity for businesses to generate interaction with the present and potential customers through the web based sites established for the purpose. With the ongoing commitment, you can create a niche market through sites such as Twitter, MySpace and Facebook.

Global impact of e-commerce: With the new payment systems such as the electronic cash, it has changed the customers’ financial lives and shakes the foundations of financial systems. Can help customers’ services greatly be enabling customers to find detailed information online, it’s a fast way of business operations.

Conclusion: The Company has greatly gained a huge benefit by using e-commerce, because by using the new technology which introduces new frame of servicing experiments in other to deliver precise, fast, efficient, reliable and retrievable customer expectations.


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