Adidas Group

Introduction

The Adidas Group is the leading sportswear company in the world. It has its roots in

Germany but it is a truly global company that strives to be the worldwide pioneer in the sporting

goods industry with brands based on an enthusiasm for sporting and athlete life. Its headquarter is

in Germany. The company is focused on continuously fortifying its brands and products to

dependably improve their aggressive position. Its major brands are Adidas and Reebok.

Adidas wants to help athletes of all level skills to achieve the best performance with all of

the product we bring to the market and to be the best sportswear manufacturing company in the

world. The company manufactures sports shoes and sports equipment. These products include

footwear, sports apparel, and golf clubs and balls. The company’s revenues and profits are rapidly

growing and it has employees from all over the world, from around 100 countries. It has over

57000 employees. (Adidas AG 2019)

Mission Statement of Adidas

The mission statement is a statement of intent for any organization. It shows what a company

wants to achieve. The Mission Statement of Adidas is that “The Adidas Group strives to be the

global leader in the sporting goods industry with brands built on a passion for sports and a sporting

lifestyle. We are committed to continuously strengthening our brands and products to improve our

competitive position.”

Vision of Adidas
The company says in its vision statement that it is innovation and design leader and wants to help

all athletes to achieve top performance with its products.

The company is consumer focused and therefore it strives to improve the quality, image, feel, and

look of its products as well as its company structure in order to not only meet but exceed customers’

expectations by providing the highest value through its products.

The company is also a social responsibility. “We are a global organization that is socially and

environmentally responsible, that embraces creativity and diversity, and is financially rewarding

for our employees and shareholders.”

Moreover, the company is also striving for every improving financial performance.

(Mission, Vision, and Values, Etc.)

Target Market of Adidas

Adidas segmented its target market in several ways. “Adidas is segmented based on

demographic, psychographic & behavioral factors. The Adidas group has four brands in its strong

portfolio – Reebok, Adidas, Rockport & Taylor made meant for different segment customer groups

(Bhasin 2017).”

One single market for Adidas is Sports athletes. In this regard, Adidas is providing high-

quality athlete footwear since its inception and that is the major reasons for its success as well. In

this regard, the company targets athletes of age 20 to 29 specifically and is highly successful in

catering to the needs of these customers (Who Is Adidas' Target Market Today?). For this purpose,

the company is working according to its above-mentioned vision and providing the high-quality
products to the customers that exceed their expectations and providing them great value for their

money.

How Adidas is Competing with Nike

One of the major competitors of Adidas in this target market of athletic footwear is Nike.

If we look at the SWOT analysis of the company, then we see that the Brand Image of Adidas

since its inception among the athletes is one of the major strengths of the company against Nike.

Then the company also has contracts with different labor organizations around the world that also

improves the brand image of the company among athlete and they know that they are buying from

a responsible company.

However, the company has a narrow product range as compared to Nike and the company

also does not have much capacity to reduce the prices because its products are outsourced. In

comparison, Nike has cost advantages which it can pass on to the consumers to provide them better

value for their money.

In order to improve its competitive position, the Adidas Group needs to broaden its product

line. Then the company also needs to improve its cost structure in order to compete Nike better in

this front as well. Otherwise, Nike may replicate other successful strategies of the Adidas and thus

can eat into its market share.

Conclusion

Adidas is a leading athletic footwear and equipment manufacturing company that has its roots in

Germany. One of its major competitors is Nike and one of the segments where both companies are

competing is athletic footwear. Nike has the advantage of brand image and great quality footwear.

However, it has a relatively narrow range as compared to Nike and the cost of its products is higher.
 References

Adidas AG (2019). Retrieved from: https://www.bloomberg.com/profile/company/ADS:GR

Who Is Adidas' Target Market Today? (N/A). Retrieved from:

https://www.reference.com/business-finance/adidas-target-market-today-363bdc15dc5a013e

Adidas. (2019, May 29). Retrieved from https://en.wikipedia.org/wiki/Adidas

(Mission, Vision and Values, Etc.(N/A) Retrieved from:

http://adidasdeportivocolombia.blogspot.com/2015/09/mission-vision-and-values.html

SWOT analysis of Adidas - Adidas SWOT Analysis. (2019, March 04). Retrieved from

https://www.marketing91.com/adidas-swot-analysis/

Bhasin, H. (2017). Marketing strategy of Adidas. Retrieved from:

https://www.marketing91.com/marketing-strategy-of-adidas/