Adidas, pest analysis, history, credo, principles, vision, mission, SWOT analysis, 5 force analysis - Porter, competitors.

2. History.
Adolf Dassler, the founder.
 Adolf Dassler was a German shoes
maker living in
Herzogenaurach, acity close from
Nuremberg. His fabrics was
named « Schuhfabrik Gebrueder
Dassler », which means „Dassler’s
brothers shoes fabric“ because
Adofl was ruling it with
hisbrother, Rudolf.The latter was
the one in charge of the marketing
part of the business, whereas the
former was focused on the
product developmentand
management.The two brothers
were making a very successful
team: the shoes have been quickly
exported and won four gold
medals during the Berlin Olympic
Games in 1936, thanks to the
American runner, Jesse Owen.

3.  Then cameWorld War II, and Rudolf and Adolf had to fight and
left thecompany management to their respective wives.When
they went back, their wives were completely unable to work
together anymore because of awful families stories.The
brothers decided to split the company in two parts: Adolf kept
the headquarters, and Rudolf built a new fabric on theother
side of the river, and created another well known sports
company,Puma.This is how, with is nickname « Adi » and the
first syllabus of his last name« Das », Adolf Dassler officially
created the brand „AdidasAG“ in 1948.One year later, he
registered the famousThree Stripes as its logo and trademark.

4. adidas Group History
1949
50’s
The 'Miracle of Bern'
1954 -The 'Miracle of Bern'
Germany battle Hungary with a
competitive advantage.They are
wearing adidas soccer boots which
for the first time feature
removable studs.
The foundation
18August - adidas is registered
as a company, named after its
founder: 'Adi' from Adolf and
'Das' from Dassler.

5.  60’s
Higher
Driven by a desire to help all
athletes committed to
performance, adidas
manufactures equipment for
what some consider "fringe
sports". Unconventional high
jumper Dick Fosbury launches
himself up and over in adidas
footwear.
 70’s
The "adidas" team wins
Crowning moment: Franz
Beckenbauer, the
"Kaiser", raising theWorld Cup in
victory salute. Germany had just
beaten Holland 2-1 in the 1974
final.
•80’s
The transition
After Adi Dassler's death, Adi's wife
Käthe, his son Horst, and his
daughters carry on the business.

6.  90’s
With a new
management
Under the CEO Robert
Louis-Dreyfus, adidas
is moving from being a
manufacturing and
sales based company
to a marketing
company.
 1995
adidas goes public
Flotation of the
company on the
Frankfurt and Paris
Stock Exchange.
1996
A splendid year
The "three-stripes company" equips
6,000Olympic athletes from 33 countries.
adidas athletes win 220 medals, including
70 gold.Apparel sales increase 50%.

7.  1997
adidas-SalomonAG
adidasAG acquires the Salomon
Group with the brands
Salomon,TaylorMade, Mavic
and Bonfire in December 1997.
The new company is named
adidas-SalomonAG.
 1999
The new brands
The integration of the new
brands is gaining momentum.
The newTaylorMade FireSole
clubs boost sales. Salomon in-
line skates take off with high
double-digit growth during
the first half of 1999.
2000
New management
Following personnel changes, the
new management initiates an
ambitious Growth and Efficiency
Program. Major sports events
such as the European Soccer
Championship EURO 2000™ and
the Olympic Summer
Games, where swimmer Ian
Thorpe takes three gold
medals, contribute to the
company’s success.

8.  2005
Sale of Salomon
The Salomon Group (including
Salomon, Mavic, Bonfire, Cliché and
Arc’Teryx) is being sold to Amer Sports in
October 2005.The new adidas Group is
focusing even more on its core strength
in the athletic footwear and apparel
market as well as the growing golf
category.The legal name of the
company will change to “adidas AG” in
May/June 2006.
2006
adidas-Salomon AG acquires
Reebok
The closing of the Reebok
transaction on January 31, 2006
marks a new chapter in the history
of the adidas Group. By combining
two of the most respected and well-
known brands in the worldwide
sporting goods industry, the new
Group will benefit from a more
competitive worldwide
platform, well-defined and
complementary brand identities, a
wider range of products, and a
stronger presence across
teams, athletes, events and leagues.2010
adidas Group presents strategic business plan
In November 2010, the Group unveiled its 2015
strategic business plan named "Route 2015".
This plan is the most comprehensive the
adidas Group has ever prepared, incorporating
all brands, sales channels and Group functions
globally

9.  2011
adidasGroup acquires FiveTen
On 3. November 2011, the adidas
Group announced the acquisition
of the outdoor specialist FiveTen.
FiveTen is a leading brand in the
technical outdoor market and
within the outdoor action sport
community.The brand represents
an excellent addition to the adidas
Outdoor portfolio and allows the
adidasGroup to expand into
complementary market segments.
 2013
adidas changes running forever
Revolutionary energy
return, superior
cushioning, optimal fit and
temperature independence:
adidas introduces the Energy
Boost, a cushioning technology
that provides the highest energy
return in the running industry.
And just like that, running will
never be the same.

11. Mission and vision

12. The adidasGroup strives to be the global leader in the sporting goods industry with
brands built on a passion for sports and a sporting lifestyle.
They are committed to continuously strengthening our brands and products to
improve our competitive position.
They are innovation and design leaders who seek to help athletes of all skill
levels achieve peak performance with every product we bring to market.
They are consumer focused and therefore we continuously improve the
quality, look, feel and image of our products and our organisational structures to
match and exceed consumer expectations and to provide them with the highest
value.
They are a global organisation that is socially and environmentally
responsible, that embraces creativity and diversity and is financially rewarding for
our employees and shareholders.
They are dedicated to consistently delivering outstanding financial results.

13. Adidas' mission statement applies to both their online and offline companies.
Their mission statement reads, "Our mission is to become the best sports brand in
the world.To that end, we will never equate quantity with quality. Our founder
Adi Dassler was passionate about sports. For Adi, the athlete came first. He gave
those on the field, the court and the track the unexpected and the little
differences that made them more comfortable and improved performance.This is
our legacy.This is what the brand stands for.This will never change.

14. Performance. Passion. Integrity. Diversity.
These values come from sport and sport is the soul of the adidas Group.
It is what links past and present. It is what orients them towards the
future.
VALUES.

15.  Their values help them to create
brands that their customers believe
in, and a company their stakeholders
can trust. Corporate responsibility has
many facets and permeates all parts
and operations of the company. For
the adidasGroup, operating
responsibly means:
 Improving working conditions in our
suppliers’ factories
 Reducing the environmental impacts
of our operations and in our supply
chain
 Caring for the welfare and
development of our employees
 Making a positive difference to
people in the communities where we
operate.
 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.

16. PRINCIPLES.

17. LABOUR RIGHTS PRINCIPLES ADIDASGROUP CODE OF
CONDUCT
 The Labour Rights Principles
demonstrate the Group’s
commitment to the United
Nations Universal Declaration
of Human Rights and are the
guiding framework for
several Group level policies
that put our commitment
into day-to day practice.
These policies are related to
issues such as employee
recruitment, development, e
qual opportunities and
compensation and benefits.
 Integrity is one of the core
values of the adidas Group.
All employees are expected
to act with fairness and
responsibility as well as in
compliance with relevant
laws and regulations while
carrying out their tasks. In
order to maintain good
corporate governance, they
have adopted the adidas
Group Code of Conduct as
part of their internal Global
Policy Manual..

18. Rumors and legends.
 Rumour: Adidas is actually an acronym for 'all day I
dream about sex'
Truth: Adidas was formed after the Dassler brothers
split up afterWorldWar II. Adolf "Adi" Dassler
foundedAdidas (hence the name) while his brother
Rudolf started the company that would become
Puma.
 Adidas was the goddess of athletics and victory.
Some say that is how the shoe brand came to be.
Not true, there is no such God/Godess as Adidas.The
GreekGoddess Nike was the goddess of victory.

20. PRODUCTS AND SERVICES.

22. 1920
 Adi Dassler makes his first shoe
in his workshop in
Herzogenaurach near
Nuremberg in Germany.The shoe
made of canvas was a training
shoe for runners and cost two
reichsmarks.Adi Dassler followed
three guiding principles in his
development work: produce the
best shoe for the requirements of
the sport, protect the athlete
from injury, and make the
product durable
 1928
Adi Dassler’s shoes are worn at the
OlympicGames for the first time.
Adi Dassler takes care of “his”
athletes in Amsterdam and strives
to optimize the respective
shoes, working closely with the
athletes. Lina Radke-Batschauer is
the first athlete to win an Olympic
gold medal in adidas shoes. She ran
the women’s 800m in world record
time.
1931
Adi Dassler makes his first tennis shoes.
1937
Adi Dassler’s range now comprises 30 different
shoes for a total of eleven sports.
1946
The firstAdi Dassler sports shoes produced
after the war are made using canvas
and rubber from American fuel tanks.

23. 1948
 Adi Dassler starts up production
again, with 47 workers.
1949
 OnAugust 18th, 1949,Adi
Dassler first registers the “Adolf
Dassler adidas
Sportschuhfabrik” in the
commercial register
(Handelsregister) in Fürth. Adi
Dassler focuses his efforts on
new football shoes. He produces
his first shoes with moulded
rubber studs.
•1963
The first adidas balls are developed and
produced.
•1964
adidas presents the lightest track shoe ever
made.The “Tokio 64” weighs just 135 grams
per shoe. At the OlympicGames inTokyo, Willi
Holdorf - in adidas - is the first German to take
gold in the decathlon.

24.  1967
The first adidas sports apparel is
produced - with the ever popular
Three Stripes, of Course.
 1970
In Mexico an adidas ball, the
“Telstar”, is the official ball at a
SoccerWorld Cup for the first
time. Right up until the present
day, all goals at major soccer
events are scored with adidas
balls.
1974
Following on the European Championship
title, the German team wins the World
Cup again.The first adidas tennis rackets are
launched.

25.  1980
The German team wins the European
SoccerChampionships for the second
time, outfitted from head to toe in
adidas.
 1984
At the Olympic Summer Games in Los
Angeles, 124 out of 140 nations
compete in adidas. 259 medals are
won in products with theThree
Stripes.Ulrike Meyfarth wins her
secondOlympic gold medal (after
1972) in the high jump.
 1993
Robert Louis-Dreyfus becomes President of
adidasAG. New sales and marketing
strategies pave the way for the successful
turnaround.The Originals wave surfaces.
Trendsetters such as Madonna wear
classic sports footwear and apparel in the
1970s style.The “Gazelle” is produced
again in small quantities
 1997
A new generation of adidas athletes
symbolizes the innovative technologies
and contemporary design of adidas
products.Anna Kournikova in tennis, and
David Beckham and Alessandro del Piero
in soccer are just some of the exceptional
talents in their sport who are on the way
to becoming the stars of the future, with
adidas

28.  EXPANSION
Fabrics
AdidasAG is engaged in the sporting goods industry, offering a range ofsports
brands across all sporting categories. Adidas manufactures footwear,apparel and
hardware.TheAdidas brand is structured in three divisions:Adidas Sport
Performance,Adidas Sport Heritage and Adidas Sport Style.The company has
approximately 100 subsidiaries in Europe, the US and Asia,each focusing on a
particular market or part of the manufacturing process.The Adidas-Salomon
Group markets its products under six brand
names:Adidas, Salomon,TaylorMade, Mavic, Bonfire and Erima.The sporting
goods and equipment industry’s major segments are sportsapparel, athletic
footwear and sporting goods equipment.This industryincludes those companies
that design, manufacture, and/or market sportingand athletic gear, including
apparel and equipment for
fishing, hunting,hiking, golf, tennis, baseball, basketball, football, biking, rollerbl
ading,snowboarding, skateboarding, surfing, skiing, and hockey, along
withplayground and play scope equipment.
Campaigns
Adidas marketing strategyAdidas is the Group’s core brand and a leader in the
sporting goods market.At the heart of Adidas is passion: passion for
sports, passion for athletes andpassion for products.Adidas is a brand built on
leading technology andcutting-edge design. It is identified and respected by
consumers for itsinnovative, inspirational and authentic values.Adidas is
organized into threeconsumer-oriented product divisions: Forever
Sport,Originals and Equipment.

29. This structure is unique to the industry and reflects the brand’scommitment to meet
changing market demands, while remaining anchored to its brand principles and
heritage. Performance-oriented footwear,apparel and hardware products will
always remain the lifeblood of Adidas.However, the German brand is also
committed to incorporating the growingimportance of lifestyle, fashion and music
inspiration into the sports arenaand Adidas products.This strategy allows the
company to create a uniqueAdidas experience and mean more to more consumers.
“Forever Sport”
Performance-Enhancing products
Adi Dassler, the founder of Adidas, based his concept to help athletes inorder to
improve their performances and use their abilities at a hundredpercent. Forever
Sport focuses its concept on satisfying the athlete’s need.Its goal is also to create
innovative products with newTechnologies on themarket. It is structured in five
main categories: running, basketball,football, tennis, and training for sport.
Ground-BreakingTechnologies in Running
The biggest and most important footwear category for the brand is“running” which is
the main concentration of performance technicalproducts. It is committed to give
high performance athletes the latestinnovative goods.Through its presence
between athletes in world’s leadingmarathons, the brand gets involved to make
sure it fulfills its requirements
.Basketball – BigGame, Big Endeavors
Basketball is the fastest growing category in the Forever Sport division.Thatis why the
brand has made a partnership with two of the major NBA players:Kobe Bryant and
Tracy McGrady, and created products like KOBETHREE,TMAC and the all day all
night highlightAdidas’ commitment to reaching outto young urban consumers.

30. Football Fever
 Adidas has become the global leader in football. It had a big presencesponsoring the
2002 FIFAWorld Cup™.The innovation in this category began 50 years ago when its
founderinvented screw-in studs that changed the football game forever.This
commitment is still today present with outstanding products such asthe Predator®
Mania boot and in long-term partnerships with leadingfootball clubs including Bayern
Munich, Real Madrid andAjax Amsterdam.
Tennis Sets New Standards
 Tennis is another category in whichAdidas is the leader in footwear andapparel sales.
Supporting this category also is the sponsorship for youngathletes such as Ana
Ivanovic, Novak Djokovic and Marat Safin, as well as formajor tournaments, like Roland
Garros (the French OpenTour).
Evidence ofTopTechnology and DesignIn
In all the product categories Forever Sport’s main target is to give stylishproducts at every
sport level. Highly functional and visually appealing are itsmain characteristics.
Improved Product Positioning
Adidas strives to have its product offering available in a wide variety ofvenues to make its
products accessible to all relevant consumer groups. Oneimportant success story in
2001 was Adidas’ cooperation with prominentJapanese designer,YohjiYamamoto.The
evidence of this successfulpartnership can be found on the catwalks in Paris and in the
world’s leadingfashion magazines. In 2002 and beyond, Adidas-Salomon will continue
toextendAdidas visibility in both traditional and non-traditional venues.Stella
McCartney has also been involved in the design of clothes andfootwear for Adidas
giving the brand an additional value.

34. PEST ANALYSIS.

36. Political
 Adidas policy is to control and monitor hazardous
substance to protect human healthand environment
one of those is to eliminate PVC making progress in
findingsubstitutes like polyurethane, ethyl
vinyl, silicones thermoplastic rubber. Adidas
also provide training sessions on employment
standards and HR systems, health and safetyis
important for the company. Establishing teams to
manage and monitor SARS inAsia factory, washing
stations, disinfectant units. Finally Adidas protects
and supports the rights of its employees by following
all the current employment laws.

37. Economical
Social As a multinational company adidas
helps countries to decrease
unemployment byincreasing every
year the number of employees.The
Industrial Production GrowthRate in
Germany was 1% in 2001-3, 2004
become 1.7%.Adidas is a reason of
thisincrease Because of the big
sponsorship in 2004Olympic Games.
As exporting toEurope is not too
expensive as it was before, Europe
since 2002 has own money(euro) and
the borders are not so tight. Labor
salary is high in Germany and
France but not so expensive in China
(Suzhou).This is the reason that most
of factorieslocated in Asia
 Adidas products declare in any
raise, age, religion, and
lifestyle, always in fashionwith
special design in any of
product. Focus in people who
like sports and athletes,almost
everybody can purchase
adidas products
Technology
Adidas join into technology by make up the world’s first smart
shoes, adding a microchip inside the shoe and wireless mp3 player.
Also using hot melt system of the production that is environmentally
safe, using heat-activated adhesives.The packaging that company
use, are suitable for transportation over long distances,humid
conditions and extreme temperature changes and use recycled paper
and other environmentally-friendly packaging materials.

38. PORTER'S FIVE FORCES

39.  Barriers to Entry - Low
Due to the large scale of both Nike and Adidas, these firms are able to control
their costs to retain performance advantage over emerging competitors in
the industry.Their web sites are more sophisticated and enticing to
browse, both contributed to their large marketing budgets.The capital
injection into web site development is high and must be updated frequently
with new promotions and added features to attract online shoppers.There
are many proprietary product differences in the industry therefore brand
identity has an immediate competitive advantage.The Nike and Adidas
brand is well renowned globally and plays a major role in consumer decision
making. Selling footwear online is highly competitive; however, barriers to
enter into this e-commerce industry are quite low.
The capital requirement for setting up an online shop is comparatively lower
than setting up a traditional bricks and mortar establishment.Therefore, the
online footwear industry is highly abundant with hundres of online
merchants. Switching cost is low for the consumer, and may occur frequently
depending on consumer preference and other factors affecting consumer
buying decision, (i.e. price sensitive consumers). Another major barrier is
Security. Although, Nike and Adidas have invested millions of dollars into
their web site, there is an industry wide problem of securing data over the
Internet medium.

40.  Bargaining Power of Buyers - High
There are a large number of buyers relative to the number of firms in this industry.
Therefore, companies like Nike and Adidas must continuously market their
product and differentiate their brands against competitors, in order to increase
sales and market share.The use of online tools has helped to enhance the
accessibility and intimacy among users. For example, Nike's "nikeid.com" link
allows consumers to customize and design their own footwear by permitting
customers to specify the desired colours and the option to personalize the
footwear with their name. Brand identity plays a critical role in the buying
behavior; strong identity will offer consumers trust and loyalty. Many online
buyers are price sensitive and switching cost is low for the buyer.
 Bargaining Power of Suppliers - Low
There are many suppliers in this industry. In essence, there is very little differentiation
among the suppliers which makes suppliers' bargaining power non-existent.
Leather, rubber, and cotton are commodity items and are available abundantly in
the market place. Conglomerates such as Nike and Adidas have a definite
advantage and power over their suppliers.These suppliers become dependent on
these firms as their means to survival. Additionally, Nike and Adidas have
standardized their input procedures pertaining to the materials used, their labor
force, supplies, services, and logistics. Firms are able to switch between suppliers
quickly and cheaply, due to the globalize networks of cheap labor on various
continents.Additionally, inputs are readily substituted and there are an abundant
number of suppliers available.

41.  Threats of Substitutes - Low
Buyers' propensity to substitute is low. Consumer substitutes for athletic
footwear products are low because there are little alternatives to
switch, some substitutes for athlete footwear could be boots, sandals, dress
shoes or bear feet. Consumers are not likely to substitute due to the
performance specification of the product. For instance, a basketball player
would not wear boots to play basketball.Therefore, there are no real
substitutes for athletic footwear.
 Rivalry among Existing Competitors - High
The rivalry among existing competitors in the footwear industry is quite high.
Large firms such as Nike and Adidas have grown immensely over the last two
decades.Their global reach has expanded through all continents; this is
attributed to the emergences of the Internet and e-commerce. Online selling
has enlarged the reach for these firms allowing them to increase sales while
minimizing operating costs. Almost every large firm has a web site, and most
of these web sites contain virtual stores which provide convenience to
consumers. Most individuals in North America have access to high speed
Internet and online purchasing has become the new trend for the twenty first
century

43. The development of a strong competitive advantage has been Adidas’ major
concern, and this is further emphasized by the existence of a large number of
heavyweight competitors operating in the athletic clothing market, in the
names of Nike, Puma, New Balance and others.Taking into consideration the
fact that a companys competitive advantage is established on the concept of
added value, Adidas should direct its marketing efforts towards producing
quality products for its customers
Competitive Advantage and Adidas
Marketing: A High Level of Added
Value to Consumers.

44.  The market of sports clothing is
characterized by a set of specific
attributes. One of them is the
extreme rivalry going on
between leading manufacturing
firms, such as
Adidas, Nike, Puma,Timberland
and New Balance. It should be
noted, however, that most of
these companies have chosen to
outsource their production and
they have re-defined themselves
as marketing companies, rather
than manufacturers, in the
traditional meaning of the term.
 Despite the fact that it currently ranks
well below Nike in the sports
shoes, apparel and accessories
market,Adidas has been a hugely
successful business enterprise right from
the moment of its establishment.The
encouragement and application of a
spirit of constant and updated
technological innovation and excellence
has resulted in generating such a
powerful competitive advantage for
Adidas that its market opponents find it
hard to beat.The high degree of
orientation to technological
development has created the expected
added valued for customers, especially
through the company’s policy to provide
them with the necessary technological
applications, for example high
performance sports shoes, in order for
specific customer needs to be met.
One of the giant sports clothing company’s most effective promotional methods for
its products has been to associate them with popular celebrities and sports idols.
This marketing strategy has generated a steady source of sales and income for the
company, and consumers seem to appreciate the quality of the products once they
know that there is a certain degree of association with influential people.
Therefore, the purchase of recognizable brand products safeguards their quality
and this creates some extra motivation for their purchase.

45.  Another form of competitive advantage for Adidas should be the
creation of a high level of customer involvement and loyalty.
Getting regular customer feedback is probably the best strategy
to stay ahead of competitors and develop and maintain long-term
profitable customer relations at the least cost possible.
 Besides, the close cooperation with celebrities and top athletes
who work together with Adidas to produce better, high
performance apparel, shoes and other sports products is a major
factor towards the successful coordination of the research and
development and the marketing departments, resulting in
innovative products, generating higher sales and company
growth.

46. Strategic Planning for
Competitive Advantage
 Every company at a certain time has to develop a
strategic plan that can put them over the top, or
help them be more successful than their
competition. Companies take part in strategic
planning for a competitive advantage which directly
relates to their mission statement. As seen in the
last post; Adidas aims high towards being the very
best in the sports business as they try to out
compete their rival Nike.

47. Basketball: increasing global
footprint
 Adidas is committed to strengthening its
position in basketball by expanding its
footprint in the critical NorthAmerican
market and capitalising on the growing
popularity of the sport in the emerging
markets.To achieve this, adidas
Basketball strives to build brand equity
by leveraging its status as the official
NBA outfitter, capitalising on
relationships with some of the most
promising stars of the NBA such as
Derrick Rose and Dwight Howard, and
building the best product in the game.
In the current season, adidas Basketball
is focusing in particular on the “faster”
franchise.With the introduction of the
NBA Revolution 30 Uniforms, the lightest
we have ever made, and the adiZero
Rose shoe, adidas has positioned itself as
the basketball brand that makes the
lightest products in the game.

49.  The main competition for Adidas brands and
products comes from the products and brands of
Nike, Puma etc (There is no such differential
advantage of price therefore it is easy for consumers
to shift from one product to other product.The
athletic market consumers are quality sensitive and
they have nothing to do with the price of the
product. It is the strong positioning and brand
personality that usually works in athletic market.The
Major reason of shifting towards substitutes is also
the availability. Due to availability and
distribution, the consumers are sometimes shifted
towards a competitors.

50.  The main competitor ofAdidas in the market is the Nike which has a market share of
almost 33%. In addition to Nike, there are also some other competitors in the market
which are smaller in size than Nike Asics, New Balance and Puma operating in United
States and European Countries.While in Asia, Li Ning is main rival present who mainly
deals in athletic shoes . All these rivals are putting all of their efforts to rubAdidas out of
the market but still due to the strong market segmentation and positioning strategy of
Adidas, they are unable to do so.
 Supplier Behavior:
Supplier also holds a power in the market because now they have more options to produce
for a large number of companies. As now there is trend of companies to sign contracts
for the events such as foot ball world cup, this also has increased the power of suppliers
because now they can deal with more companies.
 Complementary Products:
 NowAdidas is signing contracts with different companies to provide complements for
its products. For Example, they have signed a contract with Samsung in which they are
offering a shoe plus phone offer which is a complementary product. Also the technology
and innovation plays a role to provide complement to the Adidas Products. Organizing
events and creating social relationships is also there such as sponsorship of foot ball
events etc.

52. Targeting the Untapped Market
A larger portion of Asia and Africa is untapped and there is no such company
operating likeAdidas and Nike (NYTimes,Aug 5, 2008). Adidas has
already won the race against Nike in India, Japan and China (The
EconomicTimes, Jun 1, 2007). Now they can develop a strategic
partnership among the local companies to increase their market share
and to be more successful in the market. For Example, in china Adidas
can develop a strategic partnership with Li Ning and it can easily beat
Nike with this partnership. Moreover by sponsoring local sports events
in untapped markets it can develop a brand association with the target
customers and can bring more customers in the market. Adidas can also
drive the untapped market consumers to a low price perception and can
develop a new market segment to make its products compete against
Nike.
 Always it is considered that Adidas is a premium brand for international
players.This could create problem by repositioning Adidas as a brand of
everyone. Local athletes will not find Adidas suitable for them. In this
context, Adidas can make best use of its Reebok and can position
Reebok in front of this segment as a attractive brand for them.

53. Past and Ongoing Strategies (how
Adidas is planning to beat the
current economic situation)
 In the quest of becoming the market leader, Adidas acquired Reebok in 2005 to
increase its market share.The main strategy behind acquiring the Reebok was
that it dealt in both sports and normal life usage apparels.The Reebok at the
time of acquisition, kept a share of 9.6% and also in the leading markets such as
United States market it had a market share of 12.2%. By Acquiring Reebok, it
opened the way for Adidas to had more celebrities as brand ambassadors such as
Yao Ming, Shakira (singers) and Christina Ricci (actor). After the acquisition of
Reebok, the Adidas used to develop a combined strategy to both Reebok and
Adidas to beat the Market Leader Nike
 In response to the Nike’s strategy to develop a strategic partnership with Apple,
Adidas signed a contract with Samsung to produce a shoe + phone promotional
campaign. In this strategic partnership, both the companies developed a phone
to be used with shoes during training.The Major function of this phone was that
it used to motivate and guide players during training. In the start the Adidas
started with United States and German Market but now they are also focusing on
other parts of the world for example sponsorship of OlympicGames in Beijing. In
this event, Adidas used the largest Adidas store in Beijing during OlympicGames.
Now they are focusing more on China by increasing the number of stores in China
to 6300 by 2010.

59. COMPTETITION ANALYSIS

60.  Adidas's biggest competitors are Nike, Puma and
Converse. Nike's HQ is located near town
Beaverton, Oregon, USA. Puma's headquartered
in Herzogenaurach, Bavaria, Germany, just like
Adidas is. Converse's HQ is in North
Andover, Massachusetts, United States. All three
of those companies produce footware as primary
products, but they also produce and design
clothing, accessories, equipment etc. Nike –
company's name originates from the Greek
goddes of victory. Puma – rivarly. Converse –
timeless.

61. SWOT ANALYSIS.

72. Done by : Bojčić Belma,
Mešić Edin, Džan Ništović, Din Gašević
and Maarouf Fatme.