Sherzod Artikov
Brian Ross
Clara Fischer
Daniel Boudreau
Introduction
 Sherzod
 History
 SWOT Analysis
 Brian
 Global Expansion
 Domestic & International Operations
 Clara
 Competitors
 Industry
 Daniel
 Recommendations
History
 1948- Dassler Brothers Shoe Factory
split up forming Adidas & Puma
 April 18, 1949- officially registered as
Adidas AG
 2006- acquired British rival, Reebok,
for $3.8 billion
SWOT Analysis
Strengths
Weaknesses
 First movers in ecommerce
 Brand recognition
& reputation
 Strong foothold in
different industries
through mergers
with other
companies.
 E-commerce is
limited to USA &
United Kingdom
 Online customer
service
SWOT Analysis
Opportunities
Threats
 Increasing demand
for online products
 Expand ecommerce to
global markets
 Collaborate with
other online
retailers to offer
Adidas products
 Strong competition
 Global economic
downturn
 Increase in the
price of providing
e-commerce
 Price increase in
raw materials
Global Expansion
 Headquarters: Herzogenaurach, Germany
 January 31, 2006: acquisition of Reebokowning two of the three top brands
behind Nike
 Made a strong & powerful identity
throughout the world for athletes & teams
 Types of corporate units: baseball,
basketball, soccer, golf, & many others
Global Expansion
 Opened its first U.S. based store in
2002 in N.Y.C.
 One of the largest sportswear
manufactures in Europe
 Number two behind Nike worldwide
 Sponsors many teams such as the
New England Rugby team
Domestic & International Operations
 Be on the back of TaylorMade-Adidas
golf which has a tremendous uprise:
48% from 2008
 World’s largest Adidas wholesale store
in Beijing, China
 Advertising worldwide increases profit
& broadens opportunities
 Expanding more will solidify a better
relationship with countries
Competitors
 Nike
 Puma
 New Balance
Nike
 Largest supplier of sports footwear &
apparel, with Adidas following as the
2nd largest
 Publicly traded company that
competes internationally
 Headquarters: Beaverton, Oregon
 Slogan: “Just Do It”
 Founded: 1972
 Went public in December 1980
Nike
 Owns four key subsidiaries: Cole
Haan, Hurley International, Converse
Inc. & Umbro
 Reported a decline in sales for the
quarter ending February 28, 2009
 Future orders for shoes and apparel
have declined 10%
Puma
 Emerged from the ownership split
between two brothers
 Headquarters: Herzogenaurach,
Germany
 Distributes products in more than 80
countries
 Current CEO: Jochen Zeitz since 1993
Puma
 During the final 3 months of 2006,
profits had fallen by 26%
 Due to increased expansion costs
 Sales actually rose more than a third
 Receives most of its recognition
through sponsoring athletics
 In the 2008 Beijing Olympics, Puma
sponsored a three time gold medalist
in track
New Balance
 Founded: 1906
 Headquarters: Boston, Massachusetts
 Privately held company, also sells
internationally
 Offer their shoes in a wide variety of
sizes & widths
 Brands owned by New Balance:
Dunham, PF Flyers, Aravon, Warrior,
& Brine.
New Balance
 Manufacturers its shoes in the United
Kingdom-produce over 28,000 pairs
of shoes per week
 Also manufacture in the U.S.
 Marketing strategy: not giving shoes
a name, rather a number
 Most affordable
 Does not want celebrity endorsers,
rather everyday people
Market Share for Athletic Footwear
Companies
Others
12%
Puma
9%
Nike
46%
New Balance
10%
Reebok
15%
Adidas
8%
Industry
 100 manufacturers, 1,500 wholesalers &
30,000 retail outlets
 Combined annual retail revenue= $25
billion
 Demand driven by fashion &
demographics
 Athletic shoes account for 30% of sales in
the retail market
 Average person in the U.S. purchases
more than four pairs of shoes each year,
labeling the U.S. as the world’s largest
importer of footwear
Short-term Recommendations
 Go Green- Produce more eco-friendly
products
 Create more sponsorships with
professional athletes
 Better advertisements in the USA
Long-term Recommendations
 Keep building brand equity (buying
out companies)
 Work together with technology
(Reebok is currently making the best
hockey equipment)
 Sponsor a premier soccer team for
the World Cup in 2010
Conclusion
 Adidas was introduced in 1948
 Number 2 sports apparel supplier world
wide next to Nike
 Revenues of Adidas are approximately 25
billion dollars a year
 CEO Herbert Hainer has made promises to
take Adidas into the next generation and
become the number one sports apparel
brand in the world