 Overview

Adidas AG (German: [ˈʔadiˌdas] AH-dee-DAHS; stylized as ɑdidɑs since 1949) is

a multinational corporation, founded and headquartered in Herzogenaurach, Germany, that

designs and manufactures shoes, clothing and accessories. It is the

largest sportswear manufacturer in Europe, and the second largest in the world, after Nike. It is

the holding company for the Adidas Group, which consists of the Reebok sportswear

company, TaylorMade golf company (including Ashworth), Runtastic, an Austrian fitness

technology company and 8.33% of German football club Bayern Munich. Adidas' revenue for

2016 was listed at €19.29 billion.

The company’s founder and namesake, Adolf “Adi” Dassler, wanted his brand to

be called “Addas” after the split with his brother Rudi. But according to Barbara Smit’s

book Sneaker Wars, his registration was turned down because there was already a

German children’s shoe company with that name. The addition of a single vowel made

all the difference. Similarly, his brother wanted to register his new company as “Ruda”

but it was thought to be “inelegant and plump,” Smit wrote, so he went with "Puma"

instead.

I. Statement of the Problem

How will Addidas improve their sales now that they have many competitor?

II. Statements of the objectives

a. To determine what strategies of Addidas can be used to improve their sales.

b. To find out how will the management empower their employees to be motivated

on selling their product.

c. To identify their purpose in selling their products.

III. Areas of Consideration

Strengths: Weaknesses:

- Adidas company has a long heritage and -The products by Adidas can sometimes
high brand value since 1924. be costly due to innovative technology or
- Adidas sponsors major sporting events production method
including Olympics and major sportsmen - Stiff competition and similar big brands
and teams. means customers have high brand
- The company has worldwide presence switching
and is internationally recognized.
- Adidas has a very diversified product
portfolio ranging from sports shoes,
equipments to clothing and accessories.
- Strong and innovative marketing since
years have created a strong brand
retention of Adidas in the minds of
customers
-. A workforce of over 45,000 employees
- Excellent advertising of Adidas
products through TVCs, online ads, print
media, hoardings etc.
-The brand is associated with several
sport stars as their brand ambassadors

Opportunities: Threats:

-To keep up with the competition, Adidas
generates close to 60 new foot-friendly
designs each year.
-The company can venture into making
more stylish designs and cuts
-Tie-up with emerging sports
teams/clubs/players internationally can
boost Adidas's brand presence
- Brand building by setting up sponsored
sports academies
- Other brands offering more styles and
varieties, thus more competition
- Threat from other competitive brand
who produce sports equipment and
accessories at a lesser cost
- Pirated/fake imitations affect brand
image of Adidas
 12 Main Adidas Competitors:

1. Nike
2. Reebok
3. New Balance
4. Converse
5. Puma
6. Fila
7. Bata
8. Liberty Shoes
9. Under Armour
10. Umbro
11. Woodland
12. Asics

Political

 Must consider the taxation

 Manufacturing rules of each country

 Must follow import and export laws well

Economic

 Must Target customers with good purchasing power

 Developing countries may be good opportunity for Adidas.

Social

 Need to target health –conscious people

 Shoes and apparel must be for health-conscious people along with-sporty people.

Technological

 Adidas uses finest technology

  Constant changes in the technology as well as opportunity as well as threat.

III. Assumptions

1. Adidas might continue to develop their product, and might continue to work hard

to gain more customers, and to maintain those new and old customers.

2. Management might develop a good image so that they can attract many customers.

3. Adidas might promote their product in many ways, like advertising in Television

 Strong Financial Position

The company has a strong financial position as I earlier said Adidas was able to increase its sales

by 16% and generated €21.218 billion revenue in the year 2017.

 Adidas Brand Value

Brand value is an important strength of Adidas. According to BrandZ, Adidas is one of the most

valuable brands in the world. Adidas brand value is increased by 50% and worth $ 12.456

billion while Nike brand value is $38.479 billion and placed on 100th and 29th spot respectively.

 Global Presence

Another key strength of Adidas brand is its global presence. The company is operating in Asia

Pacific, Western Europe, North and Latin America, Emerging markets and Russia/CIS. It was

the fourth largest apparel brand in the world in the year 2018.

 Adidas Acquisitions

Adidas has acquired 7 different organizations that include Salomon AG (1997), Reebok

International (2005), Mitchell & Ness (2007), Textronics (2008), Five Ten USA (2011), Adams
Golf (2012) and the most recent acquisition was Tuntastic 2015. Adidas acquired Reebok Int. in

2005 for $3.8 billion that all it to compete with Nike the world leading sports footwear and

apparel brand.

 Innovative Marketing Strategy

Adidas marketing strategy is focused on three different pillars i.e. focus on 6

different geographies and target markets, focused on speed-to-market strategy and

collaboratively worked with athletes, celebrities.

 Product Innovation

The ultimate goals of Adidas is to deliver high performance but sustainable products to its

consumers. The company is designing and manufacturing innovative products that give great

comfort and better for users and plants at the same time

 Conclusion

We believe that Adidas is running a successful sports company and doesn’t have many

alterations to make to their business. The few that we would suggest are continue

marketing toward sports. Athletes and fans for training and competitions. Product wise

they should continue to make high quality clothing but in the near future lower

production cost and sale prices. Adidas looks to have a bright inevitable future if they keep

up what they do in a daily bases.

 Republic of the Philippines
Tarlac State University
College ofy Business and Accountancy
Tarlac City Romulo Blvd.

CASE STUDY:

ADIDAS COMPANY
BY:

JAN ANGELIE G. DELA ROSA

BSAN 1-1