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Adidas AG

Adidas AG. Prepared by Chen Wang (Sarah) Ying Li (Yvonne) Jerel Hafner. Overview. Commercial Website Sarah Corporation SWOT Analysis Yvonne Competitors Industry Jerel Global Expansion & Challenges Recommendations. Corporation – History.

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Adidas AG

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  1. Adidas AG Prepared by Chen Wang (Sarah) Ying Li (Yvonne) Jerel Hafner

  2. Overview Commercial Website Sarah Corporation SWOT Analysis Yvonne Competitors Industry Jerel Global Expansion & Challenges Recommendations

  3. Corporation – History • It started as Dassler Shoes, which was founded by Adolf and Rudi Dassler in 1924 • In 1949, Adolf renamed the company to Adidas AG • In 1995, Adidas went to public on the Frankfurt and Paris Stock Exchanges • In 2008, Adidas was the official sportswear partner of Beijing Olympic Games.

  4. Corporation – Current & Future Profile • 170 subsidiaries in the Americas, Europe, and Asia • Employs approximately 39,596 people • Six major segments: Wholesale, retail, TaylorMade-Adidas, Golf, Rockport, Reebok-CCM Hockey • Revenues were $15,333.3 million during the financial year ended December 2009 • Pay attention on digital social networks or digital broadcast mediums

  5. SWOT Analysis • Strengths • Experimentation • Long-term cooperation and interaction with major international tournaments • Remarkable brand image • Weaknesses • Familial pattern company • High dependence on third party manufacturing

  6. SWOT Analysis • Opportunities • Seize a large share of the emerging market • Reorganization aimed at improving efficiency • Reebok’s revival • Threats • Intense competition • Counterfeit products • Foreign exchange fluctuations

  7. Competitors Nike, Inc. Puma AG Rudolf Dassler Sport New Balance Athletic Shoe

  8. Competitors – Nike • First started as Blue Ribbon Sports in 1964 • Renamed Nike, Inc. in 1978 • Logo: Swoosh & Slogan: Just do it • Competitive Advantages: • Integrate vertically • Widen product portfolio • Conduct acquisition

  9. Competitors – Puma • Founded in 1948 • Experienced a hard time in operation in early 1990s • redesign the ideas of: • Brand concept • Marketing • Distribution

  10. Competitors – New Balance • Founded by William Riley in 1906 • Primarily a footwear manufacturer • Significant Strengths: • Technology innovation • Wide geographic presence

  11. Industry • 100 manufacturers, 1,500 wholesalers & 30,000 retail outlets • Combines annual retail revenue = $25 billion • Future Trends: • Utilize high technology to develop new products • Industrial standards increase the difficulty of market entry • Global Issues: • Handle intense competition worldwide • Control over the contract manufacturers • Eliminate increasing amount of counterfeit goods

  12. Global Expansion & Challenges – Global Expansion • 1954 Soccer World Cup - Germany vs. Hungary • 1956 Olympics • Marketing done by Horst Dassler (Adi’s son) • 33 new Olympic records were set with Adidas shoes • Entry into the U.S. Market • Adidas dominates against U.S. competitors Flyers and Keds

  13. Global Expansion & Challenges – Global Expansion • Late 1970’s • Company was making 200,000 pairs of shoes a day • Generating 500 million in sales annually • Operating in 17 countries & selling to 150 different nations • 1980’s • Domination of Nike and Reebok in U.S. Markets • 1993 Adidas named Robert Louis-Dreyfus president (cousin of Julia Louis-Dreyfus, Seinfeld) • 1997 Acquired Solomon Group ( Salomon, TaylorMade, Mavic, and Bonfire) • 2006 purchased Reebok Ltd. For 3.8 billion

  14. Worldwide Market Share, 1990-1999

  15. Global Expansion & Challenges – Challenges • Initially from Puma in 1940’s • Nike and Reebok in the 1970’s • Challenges in China • Financial Crisis after Beijing Olympics in 2008 • Old Adidas inventory

  16. Global Expansion & Challenges – Challenges • War with Nike Inc. • World Cup 2010 • Endorsed many favored countries including Spain, Argentina, and Germany • Net profit increased from 6.5 million in Q1 of 2009 to 222 million in Q1 of 2010 • Recently introduced Originals fashion brand

  17. Recommendations • Short Term • Undertake an adjustment of its organization structure • Expand its business activity on the Internet • Creative advertisement • Long Term • Push for growth into emerging countries • Combat worldwide obesity problems • Go Green

  18. Thank you!Questions?

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