Adidas Strategic Business Plan

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Daniel Patrick
Carl Ross
Premtim Kryeziu
Jhad Hindi

Table of Contents
Executive Summary3
Introduction to Adidas3
Mission Statement4
Corporate Vision5
Management Structure5
Executive Board5
Members of the Executive Board5
Supervisory Board7
Members of the Supervisory Board7
Committees of the Supervisory Board11
Organizational Flowchart13
Issues facing the organization14
Six Forces Analysis14
New Entrants:14
Customers bargaining power:15
Suppliers bargaining power:15
SWOT Analysis16
Current & Past Strategies16
Future Action Plan18
Work to Rebrand Reebok Image:18
Focus on Emerging Markets:19
Focus marketing efforts at large sporting events on key products:20
Monitor and review of the plan21
Current & Past Financials22
Balance Sheet22
Income Statement23
Statement of Cash Flows24
Estimates for the Future27
Income Statement27
Balance Sheet28

Executive Summary

Adidas Group, the world’s second largest producer of sporting apparel has had a long and rich legacy of producing some of the highest quality and most technologically innovative sporting equipment particularly footwear. Champion athletes and sports teams trust the three stripes of adidas for helping them to achieve outstanding performance when they need it most.

A world leader, adidas commands nearly a quarter (22 %) of the worldwide athletic footwear and apparel market. In the American sporting footwear and apparel market, the largest market for sporting footwear and apparel in the world, adidas holds 22% market share. In the race to be the world leader in sports apparel, adidas trails behind only Nike, which holds a worldwide market share of 33%. Adidas may currently trail behind Nike, but its rich legacy and focus on innovation, in addition to a new guiding strategy that perfectly blends marketing and technology can help adidas sprint ahead of Nike and grab the lead in both the American and emerging markets of Asia and Latin America.

Adidas’ 2005 purchase of Reebok, another leader in athletic footwear, is beginning to show signs of paying off in the race with Nike especially in many emerging markets. Furthermore, adidas is beginning to grow its image as a general footwear and apparel manufacturer which greatly helps in the race. Introduction to Adidas

Adidas success is steeped in the laurels and ethic of its founder. When Adolf ‘Adi’ Dassler, a veteran of World War I and founder of adidas’ Group, began producing shoes out of the scarce materials available in Germany after World War I, he had a simple vision for his company: provide athletes with the best suited pair of shoes for their respective sport. He followed up on his simple vision of producing the best shoes with three guiding principles: produce the best shoe for the requirements of the sport, protect the athlete from injury, and make the product durable and able to withstand the extreme conditions of sport. Many of Dassler’s original shoes were design for soccer and track & field, two popular sports in Europe at the time. The reputation and size of Dassler’s company grew quickly. By the mid 1930s, Dassler’s company employed over 100 people and had a reputation of making some of the world’s best sports shoes.

World War II took its toll on the company but Dassler and his company showed great resiliency in the face of hardship. After the war, Dassler renamed his company adidas, a portmanteau of his first and last name. In 1954, Dassler and adidas gained acclaim when its innovative studded cleats helped the underdog West German soccer team defeat the favored Hungarian team in the World Cup Finals. Many attribute the then technologically advanced studded sole adidas with helping the players on the wet and soggy field. Dassler...
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