Overview
Commercial
Website
Sarah
Corporation
SWOT Analysis
Yvonne
Competitors
Industry
Jerel
Global Expansion & Challenges
Recommendations
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
 170 subsidiaries in the Americas, Europe, and Asia
 Employs approximately 39,596 people
 Six major segments: Wholesale, retail, TaylorMadeAdidas, 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
 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 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
Nike, Inc.
Puma AG Rudolf Dassler Sport
New Balance Athletic Shoe
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
 Founded in 1948
 Experienced a hard time in operation in early 1990s
 redesign the ideas of:
 Brand concept
 Marketing
 Distribution
Competitors – New Balance
 Founded by William Riley in 1906
 Primarily a footwear manufacturer
 Significant Strengths:
 Technology innovation
 Wide geographic presence
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
 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
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
Worldwide Market Share, 1990-1999
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
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
 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