What is the nature of Adidas?
Within this report I will be writing about Adidas as an organisation and the nature of the company. Adidas is an international retailer of sportswear that is one of the second highest profitable business in this sector behind Nike however Adidas is hoping that through marketing itself well through using sporting events and the new purchase of Reebok it can overtake its main competitor as the biggest international sporting brand.
Adidas as a brand is expanding more and more and recently purchased one of its main rivals Reebok for $3.8 Billion which was a big step in overtaking Nike as the biggest sporting brand.
‘The acquisition would hand Adidas about 20% of the global market, Nike controls roughly one-third of the $145 billion market.’
Another way Adidas chose to try and overtake Nike was by trying to attract a number of sponsorships connected with the London Olympics and in this case Adidas came out on top with its stock increasing ‘by 36.7% in 2012, while Nike ecked out at 3%’. By attracting the biggest sports stars of the Olympic games to wear Adidas products by paying them vast amounts this provided advertisement for the company as the athletes were seen as role models and heroes to many different nations throughout the word with people such as Jessica Ennis and Yohan Blake opting to wear Adidas this created a lot of awareness of the products and were seen as the number one product worn by champions. ‘If Ennis wins gold, she will be bathed from top to toe in Adidas; a contract said to be worth more than £320,000 plus bonuses.’
This shows that with the vast amount of money Adidas is spending and the quality of the starts it is attracting it is one of the biggest organisations in the world with Forbes listing it as the ‘53rd most powerful brand in the world’ that Adidas is a huge organisation and the size of the company is one of the biggest in the world to date. Also the income that Adidas continually receives each...
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