Adidas_IntBus_S09

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Sherzod Artikov Brian Ross Clara Fischer Daniel Boudreau

http://www.youtube.com/watch?v=BEPamNh9ocM&NR=1

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

  First movers in e commerce Brand recognition & reputation  Strong foothold in different industries through mergers with other companies.

Weaknesses

  E-commerce is limited to USA & United Kingdom Online customer service

SWOT Analysis Opportunities

  Increasing demand for online products Expand e commerce to global markets  Collaborate with other online retailers to offer Adidas products

Threats

 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 Reebok owning 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 2 nd 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

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

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