Adidas Group - International Business

Topics: Brand loyalty, Cross-cultural communication, Brand Pages: 10 (3014 words) Published: June 2, 2013

International Business
Dr. Harry Bowen

By Ali Al Yousef

Table of Contents
The Company……………………………………………………………………………………3
Political risk8
Legal issues9
Cultural profile9
HRM/labor relations11
Mode of entry11
Political risk13
Legal issues13
Cultural profile13
HRM/labor relations14
Mode of entry15

The company

Adidas is a holding company for the Adidas Group (AG), which specialized in sports footwear, apparel and accessories. As of today, the Company diversifies its activities into three operating segments: 1. Wholesale Business;

2. Retail Business, and
3. Other Businesses.
The Wholesale Business segment comprises the Adidas and Reebok business activities with retailers. Furthermore, it diversifies its activities by geographical regions into Western Europe, European Emerging Markets, North America, Greater China, other Asian markets and Latin America. (Reuters) Adidas’ main goal is to have high consumer brand loyalty. A recent study showed that many sports’ goods consumers have a high brand loyalty towards Adidas, Nike, Inc., Puma AG and several other sportswear brands. In addition, the study found consumers did not exhibit unduly high loyalty towards newly established brands. During the mid to late 1990s, Adidas divided the brand into two main categories and each has separate focus:  1. Adidas Performance was designed to maintain AG’s devotion to athletes.  2. Adidas Original was designed to focus on fashion and healthy life-style. (Reuters)


Adidas’ objective is to be the leading sports brand on the globe. Major boost up to achieve this is the brand’s broad and unique product portfolio spanning from apparel and footwear for professional athletes to premium fashion. It allows Adidas to meet multiple consumer needs, and exploit market opportunities from various angles. Adidas’ is committed to make innovation and its rich heritage differentiates the brand from competitors and provides a solid platform for future growth. (Vlasich, 2012) The goals of Adidas are:

1. To lead the sporting goods industry.
2. To achieve this ambitious goal, different strategies are applied in order to fuel eager business development in future oriented emerging markets 3. To facilitate growth in terms of market share in already penetrated countries. Let’s have a look at the Adidas group by using standard marketing tools: Adidas believe that consumers want choice. Therefore, the group implemented a multi-brand strategy, which allows them to capitalize on opportunities from several perspectives, as both a mass and a niche player. Adidas global strategy includes that demand must be met. A product being on the point of sale is main issue for the group, so they believe that centralization will increase their distribution channels efficiency. Either owning retails or joint ventures with retails partners will provide AG with a high level of brand control, ensure the appropriate product offering, and presentation at the point of sale. Increases marker share is mentioned in the company’s global strategy. The group uses an integrated distribution roadmap (IDR) strategy, which allows them to decide which market has the highest potential growth. Consequently, the group’s investments are focused on the highest-potential markets and channels. Hence, Adidas is investing in markets with the best medium to achieve long-term growth and profitability opportunities. Especially, in the three identified “attack” markets of Adidas: North America, Greater China, Russia /CIS; which report directly to Adidas group CEO Herbret Hainer, in order to ensure that these markets receive the focus needed to achieve their goals. (Vlasich, 2012) Assets descreption of adidas...

Bibliography: Adidas Group. (2012, November 23). Adidas Strategy. Retrieved from Adidas-Group:
Adidas Group
eHow. (2012, November 23). What Countries Manufacture Adidas. Retrieved from wHow:
Geert Hofstede
QuickMBA. (2012, November 23). Strategic Management. Retrieved from Quick MBA:
The guardian
The World Bank. (2012, December 6). Data. Retrieved from the World Bank:
Vlasich, S. S. (2012, November 23). A Global Sports Strategy. Retrieved from We are Development:
Vlasich, S
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