Adidas Case Study

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Strategic Management 4850
Case Write-up #2
Adidas in 2009: Has Corporate Restructuring Increased Shareholder Value?

1.What generic corporate strategy is Adidas pursuing? Is this strategy the same for all its business units? 2.Was there a common strategic approach utilized in managing the company’s lineup of sporting goods businesses prior to its 2005 – 2006 restructuring (related versus unrelated diversification)? Has the corporate strategy changed with restructuring? Provide examples to support your conclusions a.Adidas-Salomon’s corporate strategy (1998 – 2004):

b.Adidas’ post-restructuring corporate strategy (Since 2005): 3.What is your evaluation of Adidas’ line-up of businesses in 2009? Complete the necessary information in the charts below. Draw a 9-cell industry attractiveness/business strength matrix displaying what Adidas’ business units look like. What information does the 9 cell matrix tell you about how Adidas should allocate its resources or what decisions it should make?

Industry Attractiveness Assessment for Adidas’ Businesses
(Scale 1 = very low attractiveness, 5 = average attractiveness, 10 = very strong attractiveness)
Unweighted / Weighted Ratings
Attractiveness MeasuresWeightsAthletic Footwear and ApparelGolf EquipmentCasual Men’s FootwearHockey Equipment Market Size and Growth Rate0.20
Industry Profitability0.25
Intensity of Competition0.15
Emerging Opportunities and Threats 0.05
Resource Requirements0.10
Product Innovation0.20
Social, Political, Environmental Factors0.05

Table 2
Competitive Position/Business Strength Calculations for Adidas’ Business Units (Scale 1 = very weak, 5 = average, 10 = very strong)
Unweighted/Weighted Strength Ratings
Strength MeasuresWeightAdidasReebokTaylorMade Adidas GolfRockportCCM/Rbk Hockey Relative Market Share0.20
Marketing and Promotion0.25
Product Innovation Capabilities0.15...
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