Presented By: Ed Williams Astra Curry Kenneisha Seymour

Presented By:
Ed Williams
Astra Curry
Kenneisha Seymour
Cody Weflen
Introduction
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Adidas History
Corporate Mission
SWOT Analysis
International Challenges and Competitors
Global market
Industry Analysis
Global Issues
Recommendation
History
• Background Information
• Headquarters- Herzogenaurch, Germany
• Employees- 26,376 as of December 2006
• Website- www.adidas.com
History Timeline
• 1920 Adi Dassler made his first shoes in
Herzogenaurach near Nuremberg in Germany at
the age of 20.
• 1925 Developed the first special shoes for
soccer and track and field.
– Studs and spikes where introduced for the first time.
• 1947 After World War
– Adi Dassler started with 47 workers
– Made post war shoes using canvas and rubber from
American fuel tank.
Timeline Cont.
• 1948 The two brothers Adi and Rudi Dassler
split up due to dispute.
• 1948 Adidas registered as a company named
after its founder “Adi” and “Das” Dassler.
– Rudi, on the advice of an advertising agency changed
his company to Puma.
• 1949 Registered the unmistakable three stripes.
• 1954 Breakthrough came when Germany won
the Soccer World Cup wearing boots with screw
in studs by Adidas in Hungary.
• 1960 Adidas apparel for competition and training
was produced.
Timeline Cont.
• 1978 Adi Dassler dies at the age of 78.
• 1987 Unexpectedly Horst Died at the age of 51.
• 1989 Adidas was transformed into a corporation
“Aktiengesellschaft” and retained family
ownership.
• 1991 Adidas equipment was launched.
• 1992 A younger target was addressed with
street ball.
• 1993 Robert Louis Dreyfus took over
management if Adidas.
Timeline Cont.
• 1995 In Germany stock market, Adidas was one
of the most interesting new listings.
• 1996 Adidas equipped 6,000 Olympic athletes
from 33 countries.
– Adidas athletes won 220 medals, including 70 gold.
– Apparel sales increase by 50%.
• 1997 Adidas AG obtained the Salomon Group
with the brands Salomon, TaylorMade, Mavic
and Bonfire. The new company is named
Adidas-Salomon AG.
Timeline Cont.
• 2001 first Adidas original store opened in Berlin followed
by Tokyo in December.
• 2002 Adidas opened its new North American
headquarters downtown Portland, Oregon.
• 2003 Adidas was included in Dow Jones Sustainability
Indexes (DJSI) for a 4th consecutive year.
• Opened a 3,500 square foot meter Factory Outlet with
sales floor space around 2,000 square meters.
• Sales reached 6.3 billion and net increase of 14% to 260
million.
Timeline Cont.
• 2004 Adidas partnership with Stella McCartney.
• 2005 Adidas Salomon AG sold Solomon
business segments (including Salomon, Mavic,
Bonfire, Cliché and Arc’Teryx) to the Amer
Sports Corporation.
• 2006 Adidas-Salomon AG bought Reebok.
• 2008 Adidas will be the Official Sportswear
Partner for the Olympics in Beijing.
Corporate Mission
• Strives to be the leader in sports gear and
apparel
• Improving operations
• Core Values
– Performance
– Passion
– Integrity
– Diversity
• SWOT – Strengths
• Top market position
• Strong brand name
• Geographically-diversified operations
• SWOT – Weaknesses
• Poor margins
• Low inventory turnover
• Poor ROA and ROI
• Underperformance of Reebok
• SWOT – Opportunities
• Sponsorship agreements
• Adoption of healthier lifestyles
• Growing global footwear market
• SWOT – Threats
• Rising costs of raw materials
• Counterfeits
• Legal Risks
International Challenges and
Competitors
• Nike challenges Adidas in home market
• Adidas Acquires Reebok to challenge Nike
• Competitors
– Nike
– Puma
– Others
• Amar Sport
• Rossignol
Market Share
• Nike
– 36% in United States Market
• Adidas and Reebok
– 21% in United States Market
– Reebok gave Adidas a 28% share in footwear
market
• Puma
– 1.1% in United States
Global Market
• Number of Employees
26,376
• Merged with Reebok
• Global market share of 35%
• Product line is widely ranged
Industry Analysis
• Adidas is large part of industry
• Industry includes apparel, footwear, and
accessories
• Adidas purchase of Reebok
• Adidas Subdivisions
• Adidas
– Main part of company
– Different Divisions
• Sport Performance
– Technologically oriented (mi innovation center)
• Sport Heritage
– Original and past inspired products
• Sport Style
– Future stylish sportswear
• Adidas Subdivisions
• TaylorMade-Adidas Golf
– Founded 1979
– Leader of golf industry
– Endorsements and Sponsorships
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Retief Gooson
Scott Verplank
Sergio Garcia
John Daily
• Adidas Subdivisions
• Rockport
– Founded 1971 by Saul and Bruce Katz
– Operates in 66 countries
– Purchased by Reebok in 1984
– Adidas acquired Rockport when it acquired
Reebok
• Adidas Subdivisions
• Reebok
– Bought by Adidas in 2006 forming the Adidas
Group
– Purchased to better compete with Nike
– Nike still number one but Adidas Group very
close
Global Issues
• Europe
– Slow Growth
• Due to rising costs of resources
• China
– Big Boom
• Due to increasing popularity of sports
• Future Trends
• More internationally oriented
• More Endorsements and Sponsorships
• Increased R & D
– Looking at new technologies
Recommendations
• Short Term
– Invest in producers of raw materials
– Keep up with endorsements and
Sponsorships
• Long Term
– Increase R & D
– Advance further in Technologies
– Keep supporting diversity
Any Questions?