Adidas Strategic management report
Adidas Group is the largest sportswear manufacturer in Europe and also the world’s second largest producer of sports footwear, apparel and accessories. They have over 80 years of operation history in this market segment and have prided themselves traditionally with the manufacture of cutting edge products made to last. Adidas’s direct competitor is Nike in which the former purchased Reebok to increase their market share and also reach untapped markets of their brand. The company headquarters are located in Herzogenaurach, Germany.
The company was founded by Adolf ("Adi") Dassler after coming back home from World War I in 1924 and began to produce his own shoes at home in Herzogenaurach, Germany. During this period Adolf and his brother Rudolf Dassler started a small business of making high performance sport shoes. The brand first achieved international recognition in Amsterdam as Jesse Owens wore the shoes made by the Dasslers brothers to win the gold medal. When the German football team wore soccer boots made by the Dassler brothers to beat the previously unbeatable Hungarians their success made the Dassler brothers and their brand a household name.
SWOT Analysis Chart
External Analysis (General Environment)
Countries where Adidas has vested interest in like China are in the midst of debating laws and changes to the scheme of corporate tax. This could have a significant impact on Adidas operations as 30% of the company’s production activities are based in China
Labor charges to manufacture products in Germany (which serves as their headquarters) are high. Adidas, like many other manufactures have taken the option to move their main production facilities to countries like Indonesia and Thailand to decrease outlay. In this manner, Adidas created jobs and