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Question: Discuss About The Services Market People Technology Strategy? Answer: Introduction The assessment is designed to implement the knowledge and skills to evaluate the internal and external environmental factors of a company and the determination of new offering in the market based on the result of environmental scanning. The company that has been selected for the analysis is Adidas. The report shows the analysis of strength, weakness, opportunity, and threats of the company. The recommendations to the company are stated in the report which includes the description of the target market, new product or service of the company and marketing mix strategies of the company. Background of company Adidas is a multinational corporation with the head office in Herzogenaurach, Germany. The company is one of the worlds largest sports goods and accessories manufacturer. Adi Dassler listed the Gebruder Dassler Schuhfabrik in the year 1924 with the objective to offer athletes with the best possible equipment. The company is offering the best product with the affordable product range. In the year 2006, the company acquired Reebok and since then the company started providing the product for the premium segment customers with the brand name Adidas. Reebok changed its segment and started offering products to the middle-income group people (Adidas, 2017). Analysis of marketing environment Marketing environment refers to as the combination of the internal and the external factors that create an impact on the companys ability of decision making and establishing a relationship with the customers (Keller and Kotler, 2016). SWOT analysis SWOT analysis refers to as the study for the organization to determine the internal strengths and weaknesses along with the external opportunities and threats (Forte, et.al, 2017). Adidas managers make use of the SWOT analysis to reduce the weakness, to exploit the opportunities and avoid the potential threats (Bull, et.al, 2016). The company can grab the opportunities to expand the business and also to enhance the growth and revenue. Strengths: - It shows the characteristics of the organization that provide the advantage over others. Weakness: - It shows the characteristics related to the organization at a disadvantage relative to others. Opportunities: - It includes the elements that the business could exploit to its advantage. Threats: - It includes the elements that could cause the trouble for the organization. Strengths Diversified: - Company has a diversified position in the market as the company offers a wide range of footwear and accessories under its brand name. Distribution network: - Company has an effective network of distribution for its products. Adidas sells its products through online stores, with their own retail stores, supermarket stores, and the other departmental stores. Strong financial position: - Adidas has a strong financial position in the market with more than 2400 store across the world having worth of $4.3 billion. This reflects that company can invest the amount in the innovation of new product (Bhasin, 2017). Strong market reputation: - Adidas has a strong market reputation across the national and international markets where the company has its business operations. Weaknesses Outsourced manufacturing: - The company outsources approximately 93% production from the 3rd party manufacturers (mainly from Asia) to gain the easy availability and low labor cost. Outsourcing might create the impact on the new product or services of the company (Hasseb, 2015). Premium price range: - The product offered by the company is available for limited customers due to the high price range of products. The prices of the products are high due to the innovative technology and production methods which makes the products affordable for the limited customers. Opportunities Changing lifestyle: - The saturation of the developed economies reflects the rise in the lifestyle of the peoples with the change in tastes and preferences of the consumers. Nowadays, most of the people prefer to wear branded stuff which leads to a rise in the demand for the products and services offered by the company. Tie-ups: - Company can form the tie-ups with the emerging sports teams/clubs/players internationally that help the company in boosting the Adidas's brand presence in the competitive market. Expansion in product line: - Company has an opportunity in expanding its products line and for that, the company needs to introduce the new products or services in the market (Mba Skool, 2017). Threats Competition: - Adidas is one of the well-known leading brands in the market and has many competitors in the market which include Nike, Puma, Converse and many others. These competitors bring changes in their strategies which is a threat for the Adidas. One of the strong competitors of Adidas is Nike who provides the similar products to the customers. Government Regulations: - Changes in the government regulations act as a threat to the company because they outsource products from other countries. Approximately 35% and 93% of products manufacturing takes place in China and Asia respectively. These manufactured products are outsourced by Adidas for which they have to pay a huge amount of tariffs, duties and import regulations. Apart from it, for the expansion of the product line, Adidas relies on its manufacturing units that are situated in China and Asia. Recommendation Considering the business environment of the company below given are some of the recommendations to the Adidas. Segmentation Market segmentation is the process that divides the broader customers into sub-groups of customers based on different types of shared characteristics (Boone, and Kurtz, 2013). Market segmentation of Adidas is discussed below: - Demographic segmentation It refers to dividing the market based on gender, age group, and income. Adidas offers its products mainly to men, women, and kids considering their age and life cycle of segmentation and gender segmentation (Needle, 2010). The company offers the variety of men and women clothing, shoes, body-care, and eyewear. Psychographic segmentation This segment divides the group on the basis of social class, lifestyle or the personality characteristics (Harrison, and Kjellberg, 2010). Adidas emphasis on the people belongs to the high social class and tends to have the similar buying traits. People having a high standard of living are mostly targeted by the company. A high standard person likes to purchase the product provided by the brand like Adidas (Bhasin, 2017). Target Market Target market refers to as the group of customers at which the company is aiming to provide products and services. To identify the particular group to whom the company should target there is need of the segmentation. It is recommended to the company to target demographic segment as primary target market as the company offers athletic footwear and apparel for the sports person being it male or female. The strongest customer market for Adidas is a youth with the age group of 20-29 years (IAC, 2018). It is recommended to the company to add the age group of 14-19 years as this age group reflects the next generation of athletes. The company already target the people who like to wear the sports shoes. It is recommended to the company to extend the product target market which is possible with the expansion of the product line in the market. With the introduction of a new product, the company will be able to target new segment. New product/ new services description The company is well-known for its sports shoes for the athletics who likes feel conformable after wearing it. Considering, the external analysis the company has an opportunity to expand its product line in the market. It is recommended to the company to introduce formal shoes for the people who like to wear brand like Adidas. With the introduction of the product in the market, the target market range of the company will increase and the Adidas will be able to add businessman and are professionals in their target market. The demand for the formal shoes is increasing in the competitive world. The businessmen are involved in the corporate society are restricted to wear the formal shoes at the office working hours. These people have to wear shoes for approximately 8 hours due to this the demand for comfortable shoes is increasing in the market. Marketing mix relevant strategies The marketing mix is defined as the set of marketing tools that the firm uses to pursue its marketing objectives in the target. In other words, marketing mix defines as a set of tactics or actions that are used by the company to promote its brand or product in the market. The marketing mix consists of product, price, place, promotion, and people (Lovelock, 2011). The marketing mix strategies of Adidas considering the new product are discussed below: - Product: - Company is leading sportswear but with the proper investment the company can bring new products, Formal shoes in the market. With the help of the research and development team, the company can understand the needs of the customers. The company can bring the innovation in the formal shoes (Wright, and Watkins, 2010). The product strategy of the Adidas should cover the entire product line including different types and styles of formal shoes. Price: - Products of the company are available at premium prices and due to this the company targets the people belongs to the high-income group. The company should implement the high-low pricing strategy in which the company can keep the high or low price than the competitor for the same product (Bolton, Shankar, and Montoya, 2010). At the initial step, it is recommended to the company to keep the low price for the product as it is beginning and to grab the attention of the customers it is a must. Later on, after setting the customer market and loyal customers the company can increase the price of the product (Mba Skool, 2017). Place: - Company can provide the product across the world with the use of the effective distribution channel which includes franchises, online retailers, mass merchandise, and on their outlets. The company should offer its product through multi-brand e-commerce websites (Baker, 2014). If the company will be able to make the product (Formal Shoes) available at a maximum number of stores than a maximum number of people will get aware of the product. Promotion: - Promotion of the new product in the market is essential for the company because effective promotion strategy will help the company in generating awareness. Adidas should make use of the endorsed strategy in which they can get the product promoted by the celebrity. The company can also make use of the print media, commercial campaigns on online platforms, TV, billboards (Shank, and Lyberger, 2014). At the stores of the company, the personal selling can be conducted by the employees of the company in which the staff members generate the awareness about the product in the market. People: - Company needs the staff for their existing business operations and for the new business operations. The introduction of the new product needs more people within the organization. The company hires the people depending on the skills and knowledge that they have related to the industry. Moreover, the company provides the training to new employees if they have lack of knowledge about the industry. Adidas need employees who can help the company in research and development, manufacturing and promotion of the product (Keller, Parameswaran, and Jacob, 2011). The company provides the numerous benefits to the employees that include provident fund, health and travel reimbursement and many others. Conclusion It is concluded from the report that the SWOT analysis is an essential tool for the company to evaluate the internal and the external factors that can impact the decision making and the working of the company. SWOT analysis helps the company in identifying the new product and services after scanning the result of the environmental analysis. Furthermore, the report includes the recommendations related to the target market of the company and the new products. The company should introduce a new product in the market and consider the new product the relevant marketing mix strategies are also discussed in the report related to the new product launched in the market. The successful implementation of the strategies will help the company to achieve the maximum growth and profitability. References Adidas, 2017, Products, viewed on 26th January 2018, https://www.adidas.co.in/help-topics-products.html Baker, M.J., 2014.Marketing strategy and management. Palgrave Macmillan. Bhasin, H., 2017, Adidas SWOT analysis SWOT analysis of Adidas, viewed on 26th January 2018, https://www.marketing91.com/adidas-swot-analysis/ Bhasin, H., 2017, Marketing strategy of Adidas, viewed on 26th January 2018, https://www.marketing91.com/marketing-strategy-of-adidas/ Bolton, R.N., Shankar, V. and Montoya, D.Y., 2010. 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