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Adidas AG. Prepared by Chen Wang (Sarah) Ying Li (Yvonne) Jerel Hafner. Overview. Commercial Website Sarah Corporation SWOT Analysis Yvonne Competitors Industry Jerel Global Expansion & Challenges Recommendations. Corporation – History.

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adidas ag

Adidas AG

Prepared by

Chen Wang (Sarah)

Ying Li (Yvonne)

Jerel Hafner

overview
Overview

Commercial

Website

Sarah

Corporation

SWOT Analysis

Yvonne

Competitors

Industry

Jerel

Global Expansion & Challenges

Recommendations

corporation history
Corporation – History
  • It started as Dassler Shoes, which was founded by Adolf and Rudi Dassler in 1924
  • In 1949, Adolf renamed the company to Adidas AG
  • In 1995, Adidas went to public on the Frankfurt and Paris Stock Exchanges
  • In 2008, Adidas was the official sportswear partner of Beijing Olympic Games.
corporation current future profile
Corporation – Current & Future Profile
  • 170 subsidiaries in the Americas, Europe, and Asia
  • Employs approximately 39,596 people
  • Six major segments: Wholesale, retail, TaylorMade-Adidas, Golf, Rockport, Reebok-CCM Hockey
  • Revenues were $15,333.3 million during the financial year ended December 2009
  • Pay attention on digital social networks or digital broadcast mediums
swot analysis
SWOT Analysis
  • Strengths
  • Experimentation
  • Long-term cooperation and interaction with major international tournaments
  • Remarkable brand image
  • Weaknesses
  • Familial pattern company
  • High dependence on third party manufacturing
swot analysis1
SWOT Analysis
  • Opportunities
  • Seize a large share of the emerging market
  • Reorganization aimed at improving efficiency
  • Reebok’s revival
  • Threats
  • Intense competition
  • Counterfeit products
  • Foreign exchange fluctuations
competitors
Competitors

Nike, Inc.

Puma AG Rudolf Dassler Sport

New Balance Athletic Shoe

competitors nike
Competitors – Nike
  • First started as Blue Ribbon Sports in 1964
  • Renamed Nike, Inc. in 1978
  • Logo: Swoosh & Slogan: Just do it
  • Competitive Advantages:
  • Integrate vertically
  • Widen product portfolio
  • Conduct acquisition
competitors puma
Competitors – Puma
  • Founded in 1948
  • Experienced a hard time in operation in early 1990s
  • redesign the ideas of:
  • Brand concept
  • Marketing
  • Distribution
competitors new balance
Competitors – New Balance
  • Founded by William Riley in 1906
  • Primarily a footwear manufacturer
  • Significant Strengths:
  • Technology innovation
  • Wide geographic presence
industry
Industry
  • 100 manufacturers, 1,500 wholesalers & 30,000 retail outlets
  • Combines annual retail revenue = $25 billion
  • Future Trends:
  • Utilize high technology to develop new products
  • Industrial standards increase the difficulty of market entry
  • Global Issues:
  • Handle intense competition worldwide
  • Control over the contract manufacturers
  • Eliminate increasing amount of counterfeit goods
global expansion challenges global expansion
Global Expansion & Challenges – Global Expansion
  • 1954 Soccer World Cup - Germany vs. Hungary
  • 1956 Olympics
  • Marketing done by Horst Dassler (Adi’s son)
  • 33 new Olympic records were set with Adidas shoes
  • Entry into the U.S. Market
  • Adidas dominates against U.S. competitors Flyers and Keds
slide13

Global Expansion & Challenges – Global Expansion

  • Late 1970’s
  • Company was making 200,000 pairs of shoes a day
  • Generating 500 million in sales annually
  • Operating in 17 countries & selling to 150 different nations
  • 1980’s
  • Domination of Nike and Reebok in U.S. Markets
  • 1993 Adidas named Robert Louis-Dreyfus president (cousin of Julia Louis-Dreyfus, Seinfeld)
  • 1997 Acquired Solomon Group ( Salomon, TaylorMade, Mavic, and Bonfire)
  • 2006 purchased Reebok Ltd. For 3.8 billion
slide15

Global Expansion & Challenges – Challenges

  • Initially from Puma in 1940’s
  • Nike and Reebok in the 1970’s
  • Challenges in China
  • Financial Crisis after Beijing Olympics in 2008
  • Old Adidas inventory
slide16

Global Expansion & Challenges – Challenges

  • War with Nike Inc.
  • World Cup 2010
  • Endorsed many favored countries including Spain, Argentina, and Germany
  • Net profit increased from 6.5 million in Q1 of 2009 to 222 million in Q1 of 2010
  • Recently introduced Originals fashion brand
recommendations
Recommendations
  • Short Term
  • Undertake an adjustment of its organization structure
  • Expand its business activity on the Internet
  • Creative advertisement
  • Long Term
  • Push for growth into emerging countries
  • Combat worldwide obesity problems
  • Go Green