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, Clich and ArcTeryx) 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 Employees
26,376

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?