The document outlines the history and development of mi adidas, Adidas' mass customization initiative. It provides an overview of Phases 1-2 where mi adidas launched a small pilot program and expanded to new markets and products. It then discusses the three alternatives mi adidas was considering for Phase 3-4 - withdraw, maintain, or expand. The recommendations were to do a controlled expansion using existing production facilities while limiting customization options until capabilities improved. The current situation outlined shows mi adidas expanded to more categories and allows for fully online customization through their website.

1. mi adidas
Mass Customization Initiative

2. mi adidas
Akram
Anas
Mohamed K
Mohamed A
Karim
Youssef
Dr. Ingy

3. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives.
• Recommendations.
• Current situation of mi adidas.
• References List.

4. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

5. The Case Synopsis
• This case is about mi adidas.
• We are talking about an industry in the field of sports
wears and sports equipment.
• Discussing a product offered by mass customization.
• mi adidas is in the middle of a plan after executing the first
half of it.
• We are here to help them to make the proper decision
based on the study we made.

6. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

7. History of adidas
• In 1920, it all began when Adolph Dassler “adidas” and
his brother Rudolph made their first shoes in a small
village in south Germany using basic material available
after World War I.
• Their idea was to provide every athlete with the best
possible equipment.
• Jesse Owens was the first agreed to wear their shoes and
he won 4 gold medals in Berlin Olympics.
• In 1948 the two brothers quarreled, Rudolph left to
establish Puma and Adolph to register Adidas.
• 1954 Germany won the world cup wearing new screw
studs on adidas soccer shoes.

8. 1920 adidas Shoe

9. History of adidas (Con’t)
• In 1972 Nike entered the American market targeting
teenagers, Reebok followed in 1979.
• Adidas struggled through the high pace of competition as
the aggressive competition in industry is getting higher.
• In 1989 the Dassler family withdrew from the company
and transformed into a corporation.
• Through 1989 and 1998 adidas has been acquired and
sold 3 times till 2000 when Herbert Hainer took over as a
chairman and CEO of adidas and Rolf Reinschmidt as a
head of Forever Sport Division.

10. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

11. What is mi adidas?
mi adidas store in Chanzelize'

12. • Video removed due to large size

13. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

14. Case Problem
In 2001
mi adidas had three alternative routes to choose from :
1. Withdraw : celebrate the success but quietly withdraw
from MC in order to focus on adidas’ core business.
2. Maintain : Maintain the developed capabilities and
planned retail tours following top events such as the
Soccer World Cup and marathon series
i.e. ( maintain the product categories {soccer ,
running}footwear without any intend to expand in
product)
3. Expand : Expand to multiple product categories and
new markets

15. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

16. Phase I : The mi adidas Pilot
• The objectives
• Offer a customized product
• Test consumers’ demands
• Fulfill the consumers’ expectation
• The mi Adidas Strategy
1-Attract new customer by promising superior value
( our experience)

17. Phase 1 Analysis
Mi adidas started the phase 1 project.
1. The project start with small pilot ( 300 pairs )
2. Product Selection
“ mi adidas” select soccer footwear to perform the pilot on.
3. Market Segmentation
“ mi adidas” segment the market geographically by
select six countries interested in the selected product
( Germany , France , England , Spain , Italy and the
Netherland )
3. Period
100 % event based. Over a two-month period in 2000

18. Phase II Analysis
• Phase 2
• Mi adidas strategy for growth for the Soccer footwear
for (2001)
1. Mi adidas increase the current product mass in the
same market “market penetration”
2. Mi adidas targeted a new market ( US) by the current
product “market Development”
• Mi adidas strategy for growth for the running footwear
for (2001)
1. Mi adidas provided a new product ( running footwear) in
new market (Berlin Marathon) “market Diversification”

19. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

20. mi adidas SWOT analysis

21. Strengths
- Good brand reputation in the sports goods market.
- mi adidas sales of soccer footwear increased by 1600%
between phase 1 & 2.
- High level of customization details
- Able to handle the complexity of the process.
- Large mass production facilities.
- Strong Market channels and Distribution Capabilities
- Better lead time with two weeks.
- Adidas expanded to compete in the running sports market
after phase 1.

22. Weaknesses
- Adidas is in the second place of the world footwear
Market.
- Not enough capabilities to deal with issues presented.
- Delays due to Workers lack of training and language
capability and expertise to handle MC on a larger scale.

23. Opportunities
- World cup competition in Japan 2002
- 7 major marathons (April – October 2002)
- Acquisition of rebook to compete with Nike.
- Slogan of “Impossible is nothing”
- The ability to have the most recent fashion customized.
- Athletics foot wear market was characterize by rapid
product turnover.
- 100% of the consumers in phase 1 want customization
service available in the future.

24. Threats
- Several Competitors offer similar service.
- Most of adidas income comes from the selling of its
products to retailers.
- Nike has a large global market and a large acceptance of
their product all over the globe than adidas.
- Adidas has a growing market share, but it remains to be
seen whether it will grow at the cost of Nike, or other
lesser brands.

25. Adidas Divisions
Forever Sport (largest division)
Were mi adidas is located.
Originals
Equipment

26. mi adidas in adidas’s BCG
• mi adidas considered to be a question mark in adidas’s
BCG because market growing but sales still low with
respect to other products.
• To pull mi adidas towards a star.
Question
Star
Mark
Cash
Dog
Cow

27. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

28. Global Footwear Market
Total Footwear Market in Billion €
€1.3
€2.0
€7.9
North America
Europe
€5.2 Asia-Pacific
Rest of the world
Total market = €16.4 billion

29. Global Footwear Market
60% of the total footwear market is controlled by

30. Global Footwear Market
Adidas footwear sales in 2001
North america Europe Asia Latin America
€1,200
€971
€818
€122
North america Europe Asia Latin America

31. Global Footwear Market
Nike footwear sales in 2001
USA Europe Asia Latin America
€3,209
€1,423
€632
€360
USA Europe Asia Latin America

32. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

33. Phase III &Mass Customization Rollout Plan
IV
Permanent MC Quick response
Permanent MC
Phase 4 units in adidas stores SMU's 4,000 pairs
unit
and selected via specially
2003 in Tolland Garros
specially retailers retailers
Precision "VI" Premium
Supernova (RX)
20,000 pairs 100 pairs Barricade
Phase 3 Retail /
1,400 pairs
Direct 500 pairs Direct
2002 Retail Partners
Events/Promo 8 US College Roland Garros
7 major Marathons
and Japan Teams May - Jun
Apr -Oct
all Year Sept - Oct
Predator Precision Boston Supernova
5,000 pairs 200 pairs
Phase 2 Retail/Events/Promo Retail Partners
and US Berlin Marathon
2001 Sept
Retail (Jun - Aug)
Events (all years)
Predator Precision
Phase 1 300 pairs
2000 Direct Trail
UK/D/S/F/I/NL
Soccer Running Basketball Tennis

34. Phase III & IV
• Phase 3
Mi adidas strategy for growth for the Soccer footwear
for (2002)
1. Mi adidas increase the current product mass in the same
market “market penetration”
2. Mi adidas targeted a new market ( japan) by the current
product “market Development”
* Japan ( Make full use of the soccer world cup event )
Mi adidas strategy for growth for the running footwear
for (2002)
1. Mi adidas targeted a new market (7 major Marathons)
“market Development”

35. Phase III & IV
• Phase 3
Mi adidas strategy for growth for the Basketball footwear
for (2002)
1. Mi adidas provided a new product (Basketball footwear)
in a current market (US) “product Development”
2. “ mi adidas” segment the market
I. geographically by select US
II. By age by select the university students.
 Mi adidas strategy for growth for the Tennis footwear
for (2002)
1. Mi adidas provided a new product ( Tennis footwear) in
a current market (Paris) “product Development”

36. Phase III & IV
• Phase 4
Mi adidas strategy for growth for the Soccer footwear
for (2003)
Mi adidas maintain the developed market and selected specially
retailers
 Mi adidas strategy for growth for the Basketball footwear
for (2003)
Mi adidas Expand the developed market in US in order to meet the
increasing demand
 Mi adidas strategy for growth for the Tennis footwear
for (2003)
Mi adidas maintain the developed market in Roland Garros

37. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

38. Question
• In this case the problem that adidas will be facing is the
extremely high cost of inventory in addition to the high
production cost.
The question is:
Does the added value for the service cover these additional
costs? Will the price be ideal for Adidas to keep its good
reputation?

39. Considering the three
alternatives, Withdraw, Maintain &
Expand
Withdraw
• The first option of withdrawing will mean that all the effort was
almost for nothing.
• Competitors can take advantage of a lucrative market devoid of
competitors.
Maintain
• Customization of products has already become a trend.
• mi adidas has created a good energy for the business and
customization capabilities could be integrated into existing
functions.
• Even though a huge demand of customized products exist in
the market, there are limited resources and capabilities to
handle large volume of customized goods.

40. Considering the three
alternatives, Withdraw, Maintain & Expand
Expand
• A demand for customized footwear exists.
• No big contenders (yet) for this market space.
• A controlled expansion can reduce risks. This can be
attained by limiting the amount of customization. As
capabilities and competences improve the level of
customization can be increased
• The problems that mi adidas face right now can only be fixed
by allocating more resources to deal with those issues and
the resources can be obtained only by expansion.

41. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

42. Recommendations
• Using the existing production facilities or with minimal
changes to them.
• Nike’s footwear sales are increasing so Adidas needs to take
a step forward and do something different in order to keep
the customers interested.
• Adidas should make plans of entering into other segments of
service business like customized sports goods and sports
wear
• Problems with retailers can be avoided by first expanding to
Adidas' own retail stores. After all major issues have been
solved, the service can be further expanded to other retailers.
• As for products, adidas should lead customers taste in a
certain level.

43. Road Map
• The case synopsis.
• History of adidas.
• What is mi adidas?
• Case problem.
• Phase 1 – Phase 2 (executed).
• SWOT analysis.
• Global Footwear market & Competition.
• Phase 3 – Phase 4.
• The three alternatives
• Recommendations.
• Current situation of mi adidas.
• References List.

44. mi adidas 2011
• mi adidas expanded to cover eight categories for both
men and women (Soccer, Running, Tennis, Basket
ball, Golf, Casual, Outdoor & Training)
• mi adidas allows you to customize your shoe through the
web site without any campaigns or face to face contact.
Choose your model
Choose your gender
Choose your size
Start customizing

45. Video
• Video removed due to large size

46. Questions ?

47. Thank you