Reebok 2014 Annual Report Download - page 182

178
2014
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03.5
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adidas Group
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2014 Annual Report
Group Management Report – Financial Review
Risk and Opportunity Report
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Strategic and Operational Opportunities
Opportunities which have a mid- to long-term positive impact for the Group’s top- and bottom-line
performance are already reflected in the Group’s strategic aspirations and are therefore not included
in this report. As a result, some opportunities may not be fully comparable with opportunities
presented in last year’s report. The assessment of all opportunities is shown in the opportunities
overview table.
Strategic and Operational Opportunities
Organic growth opportunities
Controlled space: The sporting goods retail environment is changing constantly. We therefore
continue to adapt our distribution strategy to cater for this change and have made controlled space
initiatives a strategic priority. This includes retail space management with key retail partners as
well as the introduction of new own-retail store formats. In addition, we continue to expand our
direct-to-consumer activities in emerging markets such as South East Asia, India or the Middle East
and North Africa. Successful results from these initiatives could enable us to accelerate top- and
bottom-line growth.
Fashion trends: Trends can rapidly change in our industry as certain styles, looks and colourways
fall in and out of relevance for the consumer. Given our broad product offering, additional sales
opportunities may arise when our products are more on-trend than those of our major competitors.
Further establishing a premium price positioning could strengthen consumers’ perception of our
brands, particularly in fashion categories, and open up additional margin opportunities.
New activities and categories: Exploiting the potential of emerging, fast-growing sports categories
is another organic growth opportunity for our brands. Our brand teams conduct market research
and engage in trend marketing to detect changes in the lifestyle and consumer needs of our
target audience as early as possible. As a result, we continue to see untapped market potential
around new fitness concepts such as CrossFit and obstacle racing. Similarly, we see tremendous
additional growth potential in the running category, in particular in North America, on the back of
our revolutionary Boost concept.
see Table 08
08
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Corporate opportunities overview
Potential impact Change in 2014
(2013 rating)
Likelihood Change in 2014
(2013 rating)
Strategic and operational opportunities
Organic growth opportunities Major Unlikely
Opportunities related to organisational and process improvements Major  (Significant) Possible
Personnel opportunities Moderate  (Significant) Possible  (Unlikely)
Macroeconomic, socio-political and regulatory opportunities Moderate Possible  (Unlikely)
Acquisition opportunities Minor Possible
Financial opportunities
Favourable financial market changes Major Possible  (Unlikely)