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1. adidas Case Study
By: Ray Moorman
3. Secondary Questions
4. What enabled adidas to be the Market Leader in the past?
5. Product Innovation
Analysis – adidas was an early entrant into athletic shoe industry. They developed many of the features still present in shoes today.
Strong presence in Olympics and soccer.
Created a strong brand based on high quality, innovative products that top athletes choose to use in training and competition.
6. Marketing Innovation
Developed strong following with top track and field athletes.
Applied this same model years later with soccer shoes and apparel.
Successful because adidas was creating innovative, high quality products.
Product innovation enabled marketing innovation.
Different than Nike – marketing is what set them apart from the start.
7. How did adidas lose the lead to Nike?
8. How Did adidas Lose US Market Share to Nike?
9. How has adidas's corporate strategy changed over time, specifically before and after the 2005-2006 restructuring?
12. What has the adidas brand represented in the past and what does it represent today?
13. adidas’s Brand
14. A Closer Look at Brand Today
15. A Closer Look at Brand Today
16. A Closer Look at Brand Today
17. The Importance of Brand Identity
18. Have adidas’s acquisitions helped improve their position against the competition?
19. Salomon Acquisition: Was it Successful?
20. adidas’s Stock Price
21. adidas after Salomon was divested
22. TaylorMade-adidas Golf Sales by Product Line
23. 2007 TaylorMade/adidas Golf Sales Breakdown
24. SWOT Analysis for Reebok
25. Reebok Acquisition On paper it looks like Reebok’s product portfolio, endorsements and relationships round out adidas and together they can join forces to overtake Nike.
Issue is can management overcome Reebok’s reputation for poor quality and lack of innovation?
Can two companies come together with such different cultures and focus?
adidas – product innovation and commitment to quality
Reebok – marketing focus
26. What role do developing countries have in adidas's future success and how is adidas positioned in those countries?
27. adidas is a global player 43% of sales from Europe, which is slowest growth market
Encouraging that #1 in developing eastern European market, Russia expected to be most profitable market in Europe by 2010
2006 acquisition of Reebok not enough to overcome Nike in North America
Growing number of sales in Asia market, fueled by adidas success in China.
Strong demand and large population
28. Net Sales in Emerging Markets
29. Regional Footwear/Apparel Markets
30. Should adidas be concerned about losing North American market share to Nike?
31. Retail Store Strategy
32. adidas AG Geographic Revenue Performance
34. adidas Global Revenue Sources (2007)
35. Reebok Global Revenue Sources (2004)
36. Is there another corporate strategy adidas should be pursuing?
37. Alt Strategy Options Use adidas as revenue driver outside of U.S. market – restructure Reebok strategy to capitalize on historic revenue performance in U.S.
Decrease number of adidas retail outlets in U.S. - convert to Reebok retail
Increase Reebok U.S. endorsements
Use adidas global distribution to further increase TaylorMade international revenues
38. Slides that follow still need to be placed or cut.
39. External Environment: PEST “Significance” represents value-neutral impact, and may be either positive or negative for Whole Foods.“Significance” represents value-neutral impact, and may be either positive or negative for Whole Foods.
40. Porter’s 5 Forces
41. Porter’s Five Forces