This case will study the German group Adidas, which is in the second position on the global market for sports equipment. The company, Adidas over the time has been able to make a name for itself due to its unique trends. Despite increasing competition, Adidas has managed to remain competitive while maintaining its brand with all that implies: its values, principles and the epitome of the sport.
In an environment where practices, expectations and consumption patterns are constantly changing, this paper will analyze the different strategies that this "Giant" has adopted to meet again and again its potential customer's needs. This work emphasizes the strategy of the sporting goods company through a detailed analysis (Porter's model, SWOT, value chain, etc).
Adidas was founded in 1949 by German Adolf Dassler. The brand name comes from the founder, "Adi" and is short for Adolf and 'Das' from the Dassler.
Originally, Adolf Dassler had been interested in the sports equipment market and wanted to create a device enabling them to improve their performance and comfort. Thus in 1925, he created the first football boot, studded shoes and the first cross country spike with which it met its first success at the Olympic Games in Amsterdam by equipping many athletes.
Thus the day in 1949 saw the success of the brand Adidas and gave it a quick notoriety by becoming the sports shoe company, leader in the world. In 1954, Adidas took advantage of the football World Cup won by Germany equipped with cleats from Adidas to communicate the performance of its products.
On innovation, Adidas adds the creation of a genuine communication policy based on the champions to show the general public, the quality of its products and will put a real high point to make it a tradition.Thereafter, production never needs to diversify in the continuing effort to meet the expectations of practitioners and even after the death of its founder in 1978.
After the death of Horst Dassler in 1987, there was a financial whirlwind as Adidas had lost its identity as a family enterprise. In 1993, a Marseilles businessman Robert Louis-Dreyfus took over the management of the company through its IPO in 1995 and the outsourcing of its manufacturing operations was done in Asia, South America and eastern Europe.
These devices will allowed Adidas to get back on track by realizing substantial savings, which allowed certain sectors to fully concentrate on R & D and marketing. In 2001, Robert Louis-Dreyfus handed over to Herbert Hainer, and the company went into the acquisition with Salomon and sold it in 2005 to Finnish Amer Sports Corporation. In 2006, Adidas acquired Reebok and with the hope to create a real synergy between the number 2 and number 3 worldwide in the market for sports equipment.
Adidas Group AG has outsourced all production operations. Thus, the brand can concentrate on marketing strategies, Research and Development and the distribution. Adidas is also the owner of Taylor Made and Maxfli, two specialty brands in golf. Adidas Group AG also targets the segment of golfers.
Tags: Adidas, case study, acquisitions, strategic analysis, marketing and distribution
[...] I - Overview of the Adidas Group AG A. History of Adidas: artisan shoemaker to world and number two in the market for sports equipment Adidas was founded in 1949 by Adolf Dassler, a German. The brand name comes from the founder; "Adi" which is short for Adolf and "Das" a part of Dassler. Originally Adolf Dassler was interested in the sports equipment market and wanted to create a device enabling athletes to improve their performance and comfort. And in 1925 he created the first football shoe cleats and first cross country spike shoes with which he experienced his first success at the Amsterdam Olympics by equipping several athletes. [...]
[...] One can study the market for each of these three strategic business areas. DAS Chaussures de sports et streetwear ➢ ➢ ➢ ➢ SBU textiles Sportswear and Streetwear SBU equipment and accessory B. Identifying strategic groups and strategic businesses ( There are four strategic groups for the SBU sneakers and streetwear Four strategic groups share the SBU of sports footwear and streetwear. Firstly, there are the two Nike and Adidas / Reebok, leaders with a diverse range resulting from a desire to cover a maximum of segments with a view to out each other. [...]
[...] (phenomenon of zapping). ¬ AVERAGE PRESSURE Barriers to entry Large companies have a very low production hit by outsourcing or relocating their production to countries with cheap labor (economy of scale). Significant costs in research and development. There is no real barriers to entry. Witnessed the emergence and rapid development of new brands like Airness Com . However, their lack of seniority can be a barrier to growth against major brands like Adidas or Puma who have acquired a high degree of legitimacy over time. [...]
[...] There is no leader, market share is distributed equitably. BARRIER "DOUBLE EDGED" Intra-industry competition It is a very diverse market that covers both niche brands in practices such as cycling, racket sports, winter sports and brands offering a diverse cross offers several practices. For manufacturers like Adidas of sales in 2004) and Nike, this area is not a priority. The economic stakes are lower, competition is much less intense than the other two SBUs. Pressure from customers distributors The economic stakes are lower (low and homogeneous PDM: Adidas, leader-ment with only for 19% of turnover) suppliers such as suppliers more easily agree on the modalities of distribution. [...]
[...] ) have a strong bargaining power. They can switch from one brand. Distributors such as Decathlon, having devel-oped their own brand fits their merchandising for their products to the detriment of other brands repre-sented. CONSIDERABLE PRESSURE Final customers Consumers do not exert direct pressure, however, the versatile application requires equipment manufacturers to remain constantly attentive and innovative collections per year) to meet the needs of new segments. MEDIUM PRESSURE Pressure suppliers The big brands have a large number of subcontractors (701 for Adidas, Nike more than 700), and the degree of concentration of suppliers is low. [...]
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