Adidas Cody F07

Presented By:

Ed Williams

Astra Curry

Kenneisha Seymour

Cody Weflen

Introduction

• 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 Employees26,376

• 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

• 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?