Impossible is nothing

The adidas Story

A name that stands for powers in all types of sport around the globe.

adidas is registered as a company, named after its founder: 'Adi' from Adolf and 'Das' from Dassler. The idea was as simple as it was brilliant.

Adi Dassler’s aim was to provideevery athlete withevery athlete withthe best possible equipment.the best possible equipment.

It all began in 1920, when Adi Dassler made his first shoes using the fewmaterials available afterthe First World War.

Today The adidas product range extends from

Shoes, Apparel and Accessories For basketball, soccer, fitness and training to

adventure, trail and golf.

The shape formed by the barsrepresents a mountain

indicating the challenge to be faced and

the goals to be achieved.

Logo

An international corporation with shareholders, customers, suppliers, employees and

Executive and Supervisory Board membersfrom all over the world.

The name of the Corporation is adidas-Salomon AG

It is a listed Company (Listed in Deutsche Börse stock market)

Form of business ownership

adidas Sport Performance-Professional sportswear, equipment-Functional and innovative products

~Basketball~Football~Golf~Running~Tennis~Cycling~Accessory (watch, sunglasses)

What to Produce

adidas Originals- Causal wear- Perfect fusion of sport authenticity and global

street style

~shoes~apparel~bags

adidas Sports Style-Fashionable, stylish

~Men~Women~Accessories~Footwear

Labour adidas employs many employees. In 2006, the new adidas Group has more than 25,000 employees.

Employees belong to labour because they work for adidas to run the internal and external business .

Factor of production

Capital adidas’s buildings, machineries, fabrics, and other raw materials are capital.

It is because they are man-made resources used to assist production.It is private capital because it is owned privately and used for production.

Target customers

Brandadidas Sport Style : fashion conscious customer

adidas Sport Heritage : Sports lifestyle customer

adidas Sport Performance : Performance athletes

Salomon : free ride athletes

Tailor-Made – adidas Golf : golfers

~ As adidas is a brand with long history and good quality, ~ It developed into a sports and fashion label gradually. ~ It had a large number of supporters to buy adidas’s products.

~ Elasticity of demand is inelastic. ~ The price of its products ~TR will ~ Gain > Loss As a result the total revenue will increase.

adidas products (apparel, footwear)

Demand and supply

Demand and Supply~As accessories are not daily necessities,~the elasticity demand of adidas’s accessories is more elastic than the footwear and apparel ~it is elastic.~When the price of accessories decrease , the TR increase

adidas’s product (accessories)

Competitive environment

~Non price competition 　

Advertisement

For example :

Nike adidas

VS

Market Structureadidas belongs to monopolistic competition

Reason :

1~ A large number of sellers and buyers

2~ The goods sold are heterogeneous

3~ Imperfect information of the market

4~ The sellers are price-searchers

5~ Non-price competition is involved

SWOTStrength :

1 International status is high. 2 Has large market shares because it has many lines and branches 3 Gain benefit from economies of scale4 Large scope of specialization5 Making efficient use of modern machines6 Getting bank credit and capital at a lower interest cost7 Advertising costs are spread over a larger output 8 Market diversification

Weakness :

1 Lots of substitutes ( e.g. Puma , Nike )

2 Reduce efficiency

Due to the problems of communication and co-ordination

Opportunity :

1 Open more lines such as elderly

2 Expand the market of women and children

3 Explore more market in developing countries

Threat :

1. Many Competitors

ConclusionAs Hong Kong is now facing the problem of ageing, the market of the elderly will become larger.

Therefore, we suggest adidas to open more production lines for the elderly in order to increase its market size and profit.

Moreover, women are fashion-conscious, so their demand for this fashion label will increase .

Therefore, adidas should increase its market share in women’s market.

Nowadays, sports become more important for children. The parents will buy more sports hardware for their physical development, adidas should focus on children market also.

As a result, the profit of adidas will increase!!!!

The ENDThank you for your attention

The project is done by Christy Law Kennis Lau Gladie Ng Erica Tam

Sources: http://www.adidas.com