Adidas 2008 Study Case

Topics: Adidas, Adolf Dassler, Herzogenaurach Pages: 7 (1504 words) Published: April 18, 2011
Adidas in 2008: has corporate reestructuring increased shareholder value

February 25, 2010


1. Introduction (History)

Gebrüder Dassler Schuhfabrik was established in Germany around 1920 by two brothers Adolf Dassler and Rudolf Dassler whom in 1948 decided to separate and created their own firms. The first one called Adidas (Adolf-Adi) and the second Puma. After the World Cup in 1954 Adidas become in a famous brand when Germany team decided to wear it, followed by the sponsoring of sports stars. After the death of Adi Dassler in 1978, his Horst son remained to the front of Adidas. Horst was only president until 1987, when it died to the 51 years. After this event, the company begins to cross one serious crisis, mainly due to the push of Nike. In 1990 Adidas was bought for Bernard Tapie (244 million Euros), but he was declared in bankruptcy in 1992, being the bank Credit Lyonnais the one in charge to sell Adidas to Robert Louis-Dreyfus, friend of Bernard Tapies. In 1997 Adidas bought the French manufacturer of equipment of ski Salomon and created Accept A.G. In 2001, Herbert Hainer took of the position company CEO. In 2002, Adidas-Salomon was the first sport brand in launching the Customization Experience, a strategy where customers can create and devise their ideal products. In the 2005, Adidas announced the sale of the company Salomon Group, by 485 million € to Amer Sports, a Finland company in the same year, Adidas bought Reebok its rival by 3.8 trillions of dollars. In this way Adidas was able to approach more to the leader company, Nike.

2. External Analysis


Political| Policies to protect human health (eliminate PVC).Policies to protect the employees’ human rights (especially in Asia).| Economical| Helps countries to reduce unemployment.Most factories in Asia because is cheaper.| Social| Products for everyone, especially whom likes sports and athletes with purchasing power. | Technological| Always innovating with high-tech products (smart shoes).| Legal| Adjustment to legal issues according to the country.| Environmental| Focuses in CSR.|


* Power of suppliers: Asian suppliers or Adidas buy it suppliers. * Power of Buyers: The different can be acquired by different ways . (retailers-final consumer; retailer-store-final consumer, etc). * Power of Competitors: Adidas has the following competitors.

• NIKE, Inc.
• Callaway Golf Company
• K-Swiss Inc.
• Tha Stride Rite Corp.
• The Asics Corp.
• Columbia Sportswear Company
• PUMA AG Rudolf Dassler Sport
• New Balance Athletic Shoe
• Amer Sports Corporation

* Power of New Players: High rivalry because of constant innovation and high tech shoes. * Power of Substitutes: Another sports products or copycat products.

c) TO

Trenghts| Opportunities|
Nike´s recognitionIncrease price of materials or suppliersEconomics crisisImaged affected by sponsored sports starsChallenges in imports/exports duties and fees | Bigger market with the acquisition of ReebokMore women in sportsFootball world cup´sCollaboration between retailers2 recognized brands|

d) KSF

* “Impossible is nothing”
* Customer experience
* Smart shoes
* Brand, image and business model
* Leading in innovation
* Leveraging partnerships
* Engaging consumers
* Investing for future

3. Internal Analysis

a) Mission

The Adidas Group strives to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle.

* We are consumer focused and therefore we continuously improve the quality, look, feel and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value. * We are innovation...
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