Adidas

Topics: Adidas, Brand, Reebok Pages: 5 (1417 words) Published: June 14, 2013
BACKGROUND
Adidas AG FWB: ADS, ADR:Pink Sheets: ADDYY) is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, golf company (including Ashworth), and Rockport.

Adidas was founded in 1948 by Adolf "Adi" Dassler, following the split of Gebrüder Dassler Schuhfabrik between him and his older brother, Rudolf. Rudolf later established Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma.

The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo. The "Three Stripes" were bought from the Finnish sport company Karhu Sports in the 1951. The company revenue for 2009 was listed at €10.38 billion and the 2008 figure at €10.80 billion.

Vision
* Innovate, creating the world’s leading products
* Work collectively, across ethnic and regional differences * Perform and lead, delivering superior financial results and investment returns, and * Maintain the highest standards of corporate responsibility in the communities in which we operate.

Mission
* create the best and most productive workplace in the world * Supporting the Group's entities in their efforts to provide a long-term future for sport. * instilling a performance culture, based upon strong leadership, setting the ground for winners

SWOT ANALYSIS FOR ADIDAS

Strengths| Weakness|
* Global brand * Diverse set of products * Great advertising * Endorsed by professional athletes  | * High cost structure * Over pricing * Low quality services * Limited product line| Opportunities| Threats|

* Change in consumer lifestyles * Available technological innovations * Entering new markets * Expand customer base (Geographically or through new products) * Market Diversification * Merger or takeover| * Competition from foreign markets * Competitor's actions * Change in consumer lifestyles * Growing power of customers to set the price * Financial slowdown * New competitors entering the market * Price war between competitors|

The strongest strength of Adidas is its brand recognition and reputation. The company name is known globally due to its quality of product that the company produced. The achievement of Adidas in establishing its name and brand globally is due to the great advertisement of its products and endorsed by professional athletes. Adidas was the biggest Sponsorship Company in 2004 Olympic Games.. Due to the brand recognition and reputation it has very strong customers base all over the world.

The main Adidas weaknesses are high cost structure and over pricing in some products. The other weaknesses are such: E-commerce is limited to USA only, the direct sale to consumers is creating conflicts with its own resellers, and online customer service not "helpful" or easy to find.

Collaborating with other online retailers to offer Adidas products is one of the ways to improve the market. The company can also expand e-commerce to global markets which will reduce the cost of goods sold. Nike's strong reputation in the footwear and apparel industry is the biggest threat for Adidas to expand its market. Adidas is now losing serious ground to Nike in the Soccer industry, which Adidas has a stronghold on.

COMPETING RIVAL USING SWOT ANAYLYSIS
In order for Adidas brand to remain competitive in future environment, the company has made new strategy. In January 2006, Adidas have takeover (with partnership), the British rival, Reebok for $3.8billion USD. This wise act is a win-win condition as Reebok was the third while Adidas was the second in the US sportswear market. This acquisition had made Adidas closer in competition with Nike, its biggest threats. In April 2006, Adidas announced an 11-year deal to become the official North America’s...

References: http://www.adidas.com
http://www.adidas-salomon.com/en/news/archive/2000/2000-07.asp, October 2003
http://www.adidas-salomon.com/en/overview/welcome.asp, October 2003 http://www.wikiswot.com/SWOT/7_Apparel/Adidas.html
http://www.urlwire.com/newsarchive/062499.html, October 2003
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