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History.Adolf Dassler, the founder. Adolf Dassler was a German shoesmaker living inHerzogenaurach, acity close fromNuremberg. His fabrics wasnamed « Schuhfabrik GebruederDassler », which means „Dassler’sbrothers shoes fabric“ becauseAdofl was ruling it withhisbrother, Rudolf.The latter wasthe one in charge of the marketingpart of the business, whereas theformer was focused on theproduct developmentandmanagement.The two brotherswere making a very successfulteam: the shoes have been quicklyexported and won four goldmedals during the Berlin OlympicGames in 1936, thanks to theAmerican runner, Jesse Owen.
Then cameWorld War II, and Rudolf and Adolf had to fight andleft thecompany management to their respective wives.Whenthey went back, their wives were completely unable to worktogether anymore because of awful families stories.Thebrothers decided to split the company in two parts: Adolf keptthe headquarters, and Rudolf built a new fabric on theotherside of the river, and created another well known sportscompany,Puma.This is how, with is nickname « Adi » and thefirst syllabus of his last name« Das », Adolf Dassler officiallycreated the brand „AdidasAG“ in 1948.One year later, heregistered the famousThree Stripes as its logo and trademark.
adidas Group History194950’sThe Miracle of Bern1954 -The Miracle of BernGermany battle Hungary with acompetitive advantage.They arewearing adidas soccer boots whichfor the first time featureremovable studs.The foundation18August - adidas is registeredas a company, named after itsfounder: Adi from Adolf andDas from Dassler.
60’sHigherDriven by a desire to help allathletes committed toperformance, adidasmanufactures equipment forwhat some consider "fringesports". Unconventional highjumper Dick Fosbury launcheshimself up and over in adidasfootwear. 70’sThe "adidas" team winsCrowning moment: FranzBeckenbauer, the"Kaiser", raising theWorld Cup invictory salute. Germany had justbeaten Holland 2-1 in the 1974final.•80’sThe transitionAfter Adi Dasslers death, Adis wifeKäthe, his son Horst, and hisdaughters carry on the business.
90’sWith a newmanagementUnder the CEO RobertLouis-Dreyfus, adidasis moving from being amanufacturing andsales based companyto a marketingcompany. 1995adidas goes publicFlotation of thecompany on theFrankfurt and ParisStock Exchange.1996A splendid yearThe "three-stripes company" equips6,000Olympic athletes from 33 countries.adidas athletes win 220 medals, including70 gold.Apparel sales increase 50%.
1997adidas-SalomonAGadidasAG acquires the SalomonGroup with the brandsSalomon,TaylorMade, Mavicand Bonfire in December 1997.The new company is namedadidas-SalomonAG. 1999The new brandsThe integration of the newbrands is gaining momentum.The newTaylorMade FireSoleclubs boost sales. Salomon in-line skates take off with highdouble-digit growth duringthe first half of 1999.2000New managementFollowing personnel changes, thenew management initiates anambitious Growth and EfficiencyProgram. Major sports eventssuch as the European SoccerChampionship EURO 2000™ andthe Olympic SummerGames, where swimmer IanThorpe takes three goldmedals, contribute to thecompany’s success.
2005Sale of SalomonThe Salomon Group (includingSalomon, Mavic, Bonfire, Cliché andArc’Teryx) is being sold to Amer Sports inOctober 2005.The new adidas Group isfocusing even more on its core strengthin the athletic footwear and apparelmarket as well as the growing golfcategory.The legal name of thecompany will change to “adidas AG” inMay/June 2006.2006adidas-Salomon AG acquiresReebokThe closing of the Reeboktransaction on January 31, 2006marks a new chapter in the historyof the adidas Group. By combiningtwo of the most respected and well-known brands in the worldwidesporting goods industry, the newGroup will benefit from a morecompetitive worldwideplatform, well-defined andcomplementary brand identities, awider range of products, and astronger presence acrossteams, athletes, events and leagues.2010adidas Group presents strategic business planIn November 2010, the Group unveiled its 2015strategic business plan named "Route 2015".This plan is the most comprehensive theadidas Group has ever prepared, incorporatingall brands, sales channels and Group functionsglobally
2011adidasGroup acquires FiveTenOn 3. November 2011, the adidasGroup announced the acquisitionof the outdoor specialist FiveTen.FiveTen is a leading brand in thetechnical outdoor market andwithin the outdoor action sportcommunity.The brand representsan excellent addition to the adidasOutdoor portfolio and allows theadidasGroup to expand intocomplementary market segments. 2013adidas changes running foreverRevolutionary energyreturn, superiorcushioning, optimal fit andtemperature independence:adidas introduces the EnergyBoost, a cushioning technologythat provides the highest energyreturn in the running industry.And just like that, running willnever be the same.
The adidasGroup strives to be the global leader in the sporting goods industry withbrands built on a passion for sports and a sporting lifestyle.They are committed to continuously strengthening our brands and products toimprove our competitive position.They are innovation and design leaders who seek to help athletes of all skilllevels achieve peak performance with every product we bring to market.They are consumer focused and therefore we continuously improve thequality, look, feel and image of our products and our organisational structures tomatch and exceed consumer expectations and to provide them with the highestvalue.They are a global organisation that is socially and environmentallyresponsible, that embraces creativity and diversity and is financially rewarding forour employees and shareholders.They are dedicated to consistently delivering outstanding financial results.
Adidas mission statement applies to both their online and offline companies.Their mission statement reads, "Our mission is to become the best sports brand inthe world.To that end, we will never equate quantity with quality. Our founderAdi Dassler was passionate about sports. For Adi, the athlete came first. He gavethose on the field, the court and the track the unexpected and the littledifferences that made them more comfortable and improved performance.This isour legacy.This is what the brand stands for.This will never change.
Performance. Passion. Integrity. Diversity.These values come from sport and sport is the soul of the adidas Group.It is what links past and present. It is what orients them towards thefuture.VALUES.
Their values help them to createbrands that their customers believein, and a company their stakeholderscan trust. Corporate responsibility hasmany facets and permeates all partsand operations of the company. Forthe adidasGroup, operatingresponsibly means: Improving working conditions in oursuppliers’ factories Reducing the environmental impactsof our operations and in our supplychain Caring for the welfare anddevelopment of our employees Making a positive difference topeople in the communities where weoperate. Innovate, creating the world’sleading products Work collectively, across ethnicand regional differences Perform and lead, deliveringsuperior financial results andinvestment returns, and Maintain the highest standardsof corporate responsibility in thecommunities in which weoperate.
LABOUR RIGHTS PRINCIPLES ADIDASGROUP CODE OFCONDUCT The Labour Rights Principlesdemonstrate the Group’scommitment to the UnitedNations Universal Declarationof Human Rights and are theguiding framework forseveral Group level policiesthat put our commitmentinto day-to day practice.These policies are related toissues such as employeerecruitment, development, equal opportunities andcompensation and benefits. Integrity is one of the corevalues of the adidas Group.All employees are expectedto act with fairness andresponsibility as well as incompliance with relevantlaws and regulations whilecarrying out their tasks. Inorder to maintain goodcorporate governance, theyhave adopted the adidasGroup Code of Conduct aspart of their internal GlobalPolicy Manual..
Rumors and legends. Rumour: Adidas is actually an acronym for all day Idream about sexTruth: Adidas was formed after the Dassler brotherssplit up afterWorldWar II. Adolf "Adi" DasslerfoundedAdidas (hence the name) while his brotherRudolf started the company that would becomePuma. Adidas was the goddess of athletics and victory.Some say that is how the shoe brand came to be.Not true, there is no such God/Godess as Adidas.TheGreekGoddess Nike was the goddess of victory.
1920 Adi Dassler makes his first shoein his workshop inHerzogenaurach nearNuremberg in Germany.The shoemade of canvas was a trainingshoe for runners and cost tworeichsmarks.Adi Dassler followedthree guiding principles in hisdevelopment work: produce thebest shoe for the requirements ofthe sport, protect the athletefrom injury, and make theproduct durable 1928Adi Dassler’s shoes are worn at theOlympicGames for the first time.Adi Dassler takes care of “his”athletes in Amsterdam and strivesto optimize the respectiveshoes, working closely with theathletes. Lina Radke-Batschauer isthe first athlete to win an Olympicgold medal in adidas shoes. She ranthe women’s 800m in world recordtime.1931Adi Dassler makes his first tennis shoes.1937Adi Dassler’s range now comprises 30 differentshoes for a total of eleven sports.1946The firstAdi Dassler sports shoes producedafter the war are made using canvasand rubber from American fuel tanks.
1948 Adi Dassler starts up productionagain, with 47 workers.1949 OnAugust 18th, 1949,AdiDassler first registers the “AdolfDassler adidasSportschuhfabrik” in thecommercial register(Handelsregister) in Fürth. AdiDassler focuses his efforts onnew football shoes. He produceshis first shoes with mouldedrubber studs.•1963The first adidas balls are developed andproduced.•1964adidas presents the lightest track shoe evermade.The “Tokio 64” weighs just 135 gramsper shoe. At the OlympicGames inTokyo, WilliHoldorf - in adidas - is the first German to takegold in the decathlon.
1967The first adidas sports apparel isproduced - with the ever popularThree Stripes, of Course. 1970In Mexico an adidas ball, the“Telstar”, is the official ball at aSoccerWorld Cup for the firsttime. Right up until the presentday, all goals at major soccerevents are scored with adidasballs.1974Following on the European Championshiptitle, the German team wins the WorldCup again.The first adidas tennis rackets arelaunched.
1980The German team wins the EuropeanSoccerChampionships for the secondtime, outfitted from head to toe inadidas. 1984At the Olympic Summer Games in LosAngeles, 124 out of 140 nationscompete in adidas. 259 medals arewon in products with theThreeStripes.Ulrike Meyfarth wins hersecondOlympic gold medal (after1972) in the high jump. 1993Robert Louis-Dreyfus becomes President ofadidasAG. New sales and marketingstrategies pave the way for the successfulturnaround.The Originals wave surfaces.Trendsetters such as Madonna wearclassic sports footwear and apparel in the1970s style.The “Gazelle” is producedagain in small quantities 1997A new generation of adidas athletessymbolizes the innovative technologiesand contemporary design of adidasproducts.Anna Kournikova in tennis, andDavid Beckham and Alessandro del Pieroin soccer are just some of the exceptionaltalents in their sport who are on the wayto becoming the stars of the future, withadidas
EXPANSIONFabricsAdidasAG is engaged in the sporting goods industry, offering a range ofsportsbrands across all sporting categories. Adidas manufactures footwear,apparel andhardware.TheAdidas brand is structured in three divisions:Adidas SportPerformance,Adidas Sport Heritage and Adidas Sport Style.The company hasapproximately 100 subsidiaries in Europe, the US and Asia,each focusing on aparticular market or part of the manufacturing process.The Adidas-SalomonGroup markets its products under six brandnames:Adidas, Salomon,TaylorMade, Mavic, Bonfire and Erima.The sportinggoods and equipment industry’s major segments are sportsapparel, athleticfootwear and sporting goods equipment.This industryincludes those companiesthat design, manufacture, and/or market sportingand athletic gear, includingapparel and equipment forfishing, hunting,hiking, golf, tennis, baseball, basketball, football, biking, rollerblading,snowboarding, skateboarding, surfing, skiing, and hockey, alongwithplayground and play scope equipment.CampaignsAdidas marketing strategyAdidas is the Group’s core brand and a leader in thesporting goods market.At the heart of Adidas is passion: passion forsports, passion for athletes andpassion for products.Adidas is a brand built onleading technology andcutting-edge design. It is identified and respected byconsumers for itsinnovative, inspirational and authentic values.Adidas isorganized into threeconsumer-oriented product divisions: ForeverSport,Originals and Equipment.
This structure is unique to the industry and reflects the brand’scommitment to meetchanging market demands, while remaining anchored to its brand principles andheritage. Performance-oriented footwear,apparel and hardware products willalways remain the lifeblood of Adidas.However, the German brand is alsocommitted to incorporating the growingimportance of lifestyle, fashion and musicinspiration into the sports arenaand Adidas products.This strategy allows thecompany to create a uniqueAdidas experience and mean more to more consumers.“Forever Sport”Performance-Enhancing productsAdi Dassler, the founder of Adidas, based his concept to help athletes inorder toimprove their performances and use their abilities at a hundredpercent. ForeverSport focuses its concept on satisfying the athlete’s need.Its goal is also to createinnovative products with newTechnologies on themarket. It is structured in fivemain categories: running, basketball,football, tennis, and training for sport.Ground-BreakingTechnologies in RunningThe biggest and most important footwear category for the brand is“running” which isthe main concentration of performance technicalproducts. It is committed to givehigh performance athletes the latestinnovative goods.Through its presencebetween athletes in world’s leadingmarathons, the brand gets involved to makesure it fulfills its requirements.Basketball – BigGame, Big EndeavorsBasketball is the fastest growing category in the Forever Sport division.Thatis why thebrand has made a partnership with two of the major NBA players:Kobe Bryant andTracy McGrady, and created products like KOBETHREE,TMAC and the all day allnight highlightAdidas’ commitment to reaching outto young urban consumers.
Football Fever Adidas has become the global leader in football. It had a big presencesponsoring the2002 FIFAWorld Cup™.The innovation in this category began 50 years ago when itsfounderinvented screw-in studs that changed the football game forever.Thiscommitment is still today present with outstanding products such asthe Predator®Mania boot and in long-term partnerships with leadingfootball clubs including BayernMunich, Real Madrid andAjax Amsterdam.Tennis Sets New Standards Tennis is another category in whichAdidas is the leader in footwear andapparel sales.Supporting this category also is the sponsorship for youngathletes such as AnaIvanovic, Novak Djokovic and Marat Safin, as well as formajor tournaments, like RolandGarros (the French OpenTour).Evidence ofTopTechnology and DesignInIn all the product categories Forever Sport’s main target is to give stylishproducts at everysport level. Highly functional and visually appealing are itsmain characteristics.Improved Product PositioningAdidas strives to have its product offering available in a wide variety ofvenues to make itsproducts accessible to all relevant consumer groups. Oneimportant success story in2001 was Adidas’ cooperation with prominentJapanese designer,YohjiYamamoto.Theevidence of this successfulpartnership can be found on the catwalks in Paris and in theworld’s leadingfashion magazines. In 2002 and beyond, Adidas-Salomon will continuetoextendAdidas visibility in both traditional and non-traditional venues.StellaMcCartney has also been involved in the design of clothes andfootwear for Adidasgiving the brand an additional value.
Political Adidas policy is to control and monitor hazardoussubstance to protect human healthand environmentone of those is to eliminate PVC making progress infindingsubstitutes like polyurethane, ethylvinyl, silicones thermoplastic rubber. Adidasalso provide training sessions on employmentstandards and HR systems, health and safetyisimportant for the company. Establishing teams tomanage and monitor SARS inAsia factory, washingstations, disinfectant units. Finally Adidas protectsand supports the rights of its employees by followingall the current employment laws.
EconomicalSocial As a multinational company adidashelps countries to decreaseunemployment byincreasing everyyear the number of employees.TheIndustrial Production GrowthRate inGermany was 1% in 2001-3, 2004become 1.7%.Adidas is a reason ofthisincrease Because of the bigsponsorship in 2004Olympic Games.As exporting toEurope is not tooexpensive as it was before, Europesince 2002 has own money(euro) andthe borders are not so tight. Laborsalary is high in Germany andFrance but not so expensive in China(Suzhou).This is the reason that mostof factorieslocated in Asia Adidas products declare in anyraise, age, religion, andlifestyle, always in fashionwithspecial design in any ofproduct. Focus in people wholike sports and athletes,almosteverybody can purchaseadidas productsTechnologyAdidas join into technology by make up the world’s first smartshoes, adding a microchip inside the shoe and wireless mp3 player.Also using hot melt system of the production that is environmentallysafe, using heat-activated adhesives.The packaging that companyuse, are suitable for transportation over long distances,humidconditions and extreme temperature changes and use recycled paperand other environmentally-friendly packaging materials.
Barriers to Entry - LowDue to the large scale of both Nike and Adidas, these firms are able to controltheir costs to retain performance advantage over emerging competitors inthe industry.Their web sites are more sophisticated and enticing tobrowse, both contributed to their large marketing budgets.The capitalinjection into web site development is high and must be updated frequentlywith new promotions and added features to attract online shoppers.Thereare many proprietary product differences in the industry therefore brandidentity has an immediate competitive advantage.The Nike and Adidasbrand is well renowned globally and plays a major role in consumer decisionmaking. Selling footwear online is highly competitive; however, barriers toenter into this e-commerce industry are quite low.The capital requirement for setting up an online shop is comparatively lowerthan setting up a traditional bricks and mortar establishment.Therefore, theonline footwear industry is highly abundant with hundres of onlinemerchants. Switching cost is low for the consumer, and may occur frequentlydepending on consumer preference and other factors affecting consumerbuying decision, (i.e. price sensitive consumers). Another major barrier isSecurity. Although, Nike and Adidas have invested millions of dollars intotheir web site, there is an industry wide problem of securing data over theInternet medium.
Bargaining Power of Buyers - HighThere are a large number of buyers relative to the number of firms in this industry.Therefore, companies like Nike and Adidas must continuously market theirproduct and differentiate their brands against competitors, in order to increasesales and market share.The use of online tools has helped to enhance theaccessibility and intimacy among users. For example, Nikes "nikeid.com" linkallows consumers to customize and design their own footwear by permittingcustomers to specify the desired colours and the option to personalize thefootwear with their name. Brand identity plays a critical role in the buyingbehavior; strong identity will offer consumers trust and loyalty. Many onlinebuyers are price sensitive and switching cost is low for the buyer. Bargaining Power of Suppliers - LowThere are many suppliers in this industry. In essence, there is very little differentiationamong the suppliers which makes suppliers bargaining power non-existent.Leather, rubber, and cotton are commodity items and are available abundantly inthe market place. Conglomerates such as Nike and Adidas have a definiteadvantage and power over their suppliers.These suppliers become dependent onthese firms as their means to survival. Additionally, Nike and Adidas havestandardized their input procedures pertaining to the materials used, their laborforce, supplies, services, and logistics. Firms are able to switch between suppliersquickly and cheaply, due to the globalize networks of cheap labor on variouscontinents.Additionally, inputs are readily substituted and there are an abundantnumber of suppliers available.
Threats of Substitutes - LowBuyers propensity to substitute is low. Consumer substitutes for athleticfootwear products are low because there are little alternatives toswitch, some substitutes for athlete footwear could be boots, sandals, dressshoes or bear feet. Consumers are not likely to substitute due to theperformance specification of the product. For instance, a basketball playerwould not wear boots to play basketball.Therefore, there are no realsubstitutes for athletic footwear. Rivalry among Existing Competitors - HighThe rivalry among existing competitors in the footwear industry is quite high.Large firms such as Nike and Adidas have grown immensely over the last twodecades.Their global reach has expanded through all continents; this isattributed to the emergences of the Internet and e-commerce. Online sellinghas enlarged the reach for these firms allowing them to increase sales whileminimizing operating costs. Almost every large firm has a web site, and mostof these web sites contain virtual stores which provide convenience toconsumers. Most individuals in North America have access to high speedInternet and online purchasing has become the new trend for the twenty firstcentury
The development of a strong competitive advantage has been Adidas’ majorconcern, and this is further emphasized by the existence of a large number ofheavyweight competitors operating in the athletic clothing market, in thenames of Nike, Puma, New Balance and others.Taking into consideration thefact that a companys competitive advantage is established on the concept ofadded value, Adidas should direct its marketing efforts towards producingquality products for its customersCompetitive Advantage and AdidasMarketing: A High Level of AddedValue to Consumers.
The market of sports clothing ischaracterized by a set of specificattributes. One of them is theextreme rivalry going onbetween leading manufacturingfirms, such asAdidas, Nike, Puma,Timberlandand New Balance. It should benoted, however, that most ofthese companies have chosen tooutsource their production andthey have re-defined themselvesas marketing companies, ratherthan manufacturers, in thetraditional meaning of the term. Despite the fact that it currently rankswell below Nike in the sportsshoes, apparel and accessoriesmarket,Adidas has been a hugelysuccessful business enterprise right fromthe moment of its establishment.Theencouragement and application of aspirit of constant and updatedtechnological innovation and excellencehas resulted in generating such apowerful competitive advantage forAdidas that its market opponents find ithard to beat.The high degree oforientation to technologicaldevelopment has created the expectedadded valued for customers, especiallythrough the company’s policy to providethem with the necessary technologicalapplications, for example highperformance sports shoes, in order forspecific customer needs to be met.One of the giant sports clothing company’s most effective promotional methods forits products has been to associate them with popular celebrities and sports idols.This marketing strategy has generated a steady source of sales and income for thecompany, and consumers seem to appreciate the quality of the products once theyknow that there is a certain degree of association with influential people.Therefore, the purchase of recognizable brand products safeguards their qualityand this creates some extra motivation for their purchase.
Another form of competitive advantage for Adidas should be thecreation of a high level of customer involvement and loyalty.Getting regular customer feedback is probably the best strategyto stay ahead of competitors and develop and maintain long-termprofitable customer relations at the least cost possible. Besides, the close cooperation with celebrities and top athleteswho work together with Adidas to produce better, highperformance apparel, shoes and other sports products is a majorfactor towards the successful coordination of the research anddevelopment and the marketing departments, resulting ininnovative products, generating higher sales and companygrowth.
Strategic Planning forCompetitive Advantage Every company at a certain time has to develop astrategic plan that can put them over the top, orhelp them be more successful than theircompetition. Companies take part in strategicplanning for a competitive advantage which directlyrelates to their mission statement. As seen in thelast post; Adidas aims high towards being the verybest in the sports business as they try to outcompete their rival Nike.
Basketball: increasing globalfootprint Adidas is committed to strengthening itsposition in basketball by expanding itsfootprint in the critical NorthAmericanmarket and capitalising on the growingpopularity of the sport in the emergingmarkets.To achieve this, adidasBasketball strives to build brand equityby leveraging its status as the officialNBA outfitter, capitalising onrelationships with some of the mostpromising stars of the NBA such asDerrick Rose and Dwight Howard, andbuilding the best product in the game.In the current season, adidas Basketballis focusing in particular on the “faster”franchise.With the introduction of theNBA Revolution 30 Uniforms, the lightestwe have ever made, and the adiZeroRose shoe, adidas has positioned itself asthe basketball brand that makes thelightest products in the game.
The main competition for Adidas brands andproducts comes from the products and brands ofNike, Puma etc (There is no such differentialadvantage of price therefore it is easy for consumersto shift from one product to other product.Theathletic market consumers are quality sensitive andthey have nothing to do with the price of theproduct. It is the strong positioning and brandpersonality that usually works in athletic market.TheMajor reason of shifting towards substitutes is alsothe availability. Due to availability anddistribution, the consumers are sometimes shiftedtowards a competitors.
The main competitor ofAdidas in the market is the Nike which has a market share ofalmost 33%. In addition to Nike, there are also some other competitors in the marketwhich are smaller in size than Nike Asics, New Balance and Puma operating in UnitedStates and European Countries.While in Asia, Li Ning is main rival present who mainlydeals in athletic shoes . All these rivals are putting all of their efforts to rubAdidas out ofthe market but still due to the strong market segmentation and positioning strategy ofAdidas, they are unable to do so. Supplier Behavior:Supplier also holds a power in the market because now they have more options to producefor a large number of companies. As now there is trend of companies to sign contractsfor the events such as foot ball world cup, this also has increased the power of suppliersbecause now they can deal with more companies. Complementary Products: NowAdidas is signing contracts with different companies to provide complements forits products. For Example, they have signed a contract with Samsung in which they areoffering a shoe plus phone offer which is a complementary product. Also the technologyand innovation plays a role to provide complement to the Adidas Products. Organizingevents and creating social relationships is also there such as sponsorship of foot ballevents etc.
Targeting the Untapped MarketA larger portion of Asia and Africa is untapped and there is no such companyoperating likeAdidas and Nike (NYTimes,Aug 5, 2008). Adidas hasalready won the race against Nike in India, Japan and China (TheEconomicTimes, Jun 1, 2007). Now they can develop a strategicpartnership among the local companies to increase their market shareand to be more successful in the market. For Example, in china Adidascan develop a strategic partnership with Li Ning and it can easily beatNike with this partnership. Moreover by sponsoring local sports eventsin untapped markets it can develop a brand association with the targetcustomers and can bring more customers in the market. Adidas can alsodrive the untapped market consumers to a low price perception and candevelop a new market segment to make its products compete againstNike. Always it is considered that Adidas is a premium brand for internationalplayers.This could create problem by repositioning Adidas as a brand ofeveryone. Local athletes will not find Adidas suitable for them. In thiscontext, Adidas can make best use of its Reebok and can positionReebok in front of this segment as a attractive brand for them.
Past and Ongoing Strategies (howAdidas is planning to beat thecurrent economic situation) In the quest of becoming the market leader, Adidas acquired Reebok in 2005 toincrease its market share.The main strategy behind acquiring the Reebok wasthat it dealt in both sports and normal life usage apparels.The Reebok at thetime of acquisition, kept a share of 9.6% and also in the leading markets such asUnited States market it had a market share of 12.2%. By Acquiring Reebok, itopened the way for Adidas to had more celebrities as brand ambassadors such asYao Ming, Shakira (singers) and Christina Ricci (actor). After the acquisition ofReebok, the Adidas used to develop a combined strategy to both Reebok andAdidas to beat the Market Leader Nike In response to the Nike’s strategy to develop a strategic partnership with Apple,Adidas signed a contract with Samsung to produce a shoe + phone promotionalcampaign. In this strategic partnership, both the companies developed a phoneto be used with shoes during training.The Major function of this phone was thatit used to motivate and guide players during training. In the start the Adidasstarted with United States and German Market but now they are also focusing onother parts of the world for example sponsorship of OlympicGames in Beijing. Inthis event, Adidas used the largest Adidas store in Beijing during OlympicGames.Now they are focusing more on China by increasing the number of stores in Chinato 6300 by 2010.
Adidass biggest competitors are Nike, Puma andConverse. Nikes HQ is located near townBeaverton, Oregon, USA. Pumas headquarteredin Herzogenaurach, Bavaria, Germany, just likeAdidas is. Converses HQ is in NorthAndover, Massachusetts, United States. All threeof those companies produce footware as primaryproducts, but they also produce and designclothing, accessories, equipment etc. Nike –companys name originates from the Greekgoddes of victory. Puma – rivarly. Converse –timeless.