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 ecommerce

 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 ecommerce 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 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

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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