Professional Documents
Culture Documents
ADDIDAS
ADDIDAS
Executive summary
Introduction
Company Mission
Adidas Group Values
Adidas General Approach
Sustainability Strategy
Company History
Company Logo
Adidas Brands
Organizational Structure of Adidas
Organizational Chart of Adidas
Organizational Culture of Adidas
Working at Adidas
Adidas Workplace Standards
Executive Board Members
Supervisory Board Members
Supply Chain Approach
Supply Chain structure
Supply Chain training
Adidas Green Company
CERTIFICATION TO ISO 14001
Privacy Policies
Awards and Recognitions
Adidas Six Force Analysis
Adidas Global Sales
SWOT and TOWS Analysis
Conclusion
References
EXECUTIVE SUMMARY
The adidas Group is one of the global leaders within the sporting goods
industry, offering a broad range of products around the core brands:
adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey.
Headquartered in Herzogenaurach, Germany, the Group has more
than 46,000 employees and generated sales of € 13.3 billion in 2011.
INTRODUCTION
Established in post-war Germany in 1949 (in its current form) by Adolf Dassler,
the adidas Group has been synonymous with sports and sportswear for the last
60 years. The company has been part of many significant sporting moments,
including but not restricted to the 1954 and 1974 German victories in the
football World Cup, the recently in news Boston and Vancouver Marathons,
and all World Cup and Euro Cup footballs since 1970.
The phenomenal growth of the company has been primarily off the back of clever
sponsorships of key athletes and teams, and also through the design of
innovative new technologies. For example, adidas was the first footwear brand to
develop football boots with removable studs in the 1954 World Cup, and more
recently in 2005, the design of the first shoe with an in-built microprocessor that
can adjust itself as per the runner’s needs. Alongside this, their revenues have
been growing roughly at 11% year-on-year with the latest financial reports of
2012 showing Revenues of €14.9 billion and Net Income of €526 million.
Adidas Group counts amongst its brands the flagship “adidas marque”, “adidas
Originals” and “TaylorMade-Adidas” (golf range), amongst many others. In 2005,
adidas acquired Reebok for $3.8 billion, thus bringing it closer to its largest rival
Nike in terms of Sales, and making it the number two athletic shoemaker in the
world. Apart from Nike, other competitors for adidas include Puma, Deckers,
Crocs and Callaway Golf (competing with adidas’ golf range – TaylorMade).
The operating environment of adidas is the sportswear and fashion industry,
which has seen outstanding growth since the economic recession. Worth less
than $200 billion in 2008, it is projected to grow to $300 billion in 2017. This
growth provides tremendous opportunities for sportswear firms, both large and
small, to expand and establish their business in this arena. Most of the growth in
this segment is provided for by the United States, Brazil, China and Russia, who
together account for 60% of the total growth. However, challenges for the
industry still remain in the form of market saturation in developing countries
and the subdued economic environment.1
In the following report, they analyze the corporate structure of adidas AG, and
look at the firm’s Capital Structure, Dividend Policy and the Firm Valuation. They
use their analysis to determine the stock value of the firm and they compare that
to the actual price at which the stock is trading.
Mission
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. They are
committed to continuously strengthening their brands and products to improve
their competitive position.
Authentic: adidas is the first genuine sports brand. They were founded by a
true athlete whose one guiding principle was to make equipment that makes
athletes better. This is what made Adi Dassler Authentic then, this is what
makes Adidas authentic today, and this is what will always make them
authentic.
Passionate: Passion is at the heart of sport and of every true athlete. Passion
knows know borders, no age, no race and not time. Passion is what drives
athletes to succeed and is what drove Adi Dassler to make his first pair of
athletic shoes in 1920. It is this same passion that will always guide adidas.
Honest: At all times and in all relationships, adidas is genuine, ethical and
fair.
Passion
Passion is at the heart of their company. They are continuously moving
forward, innovating, and improving.
Integrity
They are honest, open, ethical, and fair. People trust them to adhere to their
word.
Diversity
Adidas know it takes people with different ideas, strengths, interests, and
cultural backgrounds to make their company succeed. They encourage
healthy debate and differences of opinion.
SUSTAINABILITY PROGRAMME
Adidas have been working towards sustainability for many years and recognize that
the task ahead of them is a marathon, not a sprint. It is about preparedness and setting
the right pace, having both the drive and stamina to make the distance. And most of
all, it is about endurance: overcoming setbacks and difficulties, keeping the finishing
line always in the forefront of their minds.
SUSTAINABILITY STATEMENT
They help adidas to create brands that their customers believe in and they commit
them to playing by the rules that society expects of a responsible company. Unlike
sport, society’s rules are not always written down.
Adidas discover them by engaging with the people that their business touches,
learning above all that companies are expected to be accountable for their actions. So
adidas is committed to reporting publicly on the steps that they take to have a more
positive impact on society and the planet.
For the adidas Group, this means designing products that are environmentally sound,
and reducing the environmental impacts of their day-to-day operations and in their
supply chain.
It is about setting workplace standards for their suppliers to meet and helping them to
ensure fair, safe and healthy conditions in their factories. Importantly, it also means
looking after the well-being and careers of their employees – the company’s biggest
asset – and making a positive contribution to the communities where they operate.
Adhering to all applicable laws, directives and guidelines is a business imperative. But
that is not enough. Adidas is continuously striving to improve their performance and
their standing in society. They set themselves targets that stretch them, regularly
review their progress and set themselves new goals.
That is what the world’s leading athletes do, and it is what Adidas must do as a global
leader in the sporting goods industry.
The Sustainability Statement outlines the guiding framework for becoming a more
sustainable company, and provides information on Adidas individual missions in
Social and Environmental Affairs, Environmental Management, Human Resources
Management and Community Affairs.
SUSTAINABILITY STRATEGY
In 2010, the adidas Group presented the most comprehensive and aligned Strategic
Business Plan ever created: Route 2015. Over these five years, they want to achieve
qualitative and sustainable growth by building desirable, leading brands in the
consumers’ and customers’ perception. Consumers want the products they buy to be
the best, helping them perform at their best. However, nowadays they increasingly
expect companies to do more than only consider social and environmental issues.
They want to buy products from companies that are at the leading edge in terms of
making a difference to the world at large.
Adidas know that they can only follow this route if they are fully committed to
managing their business operations in a sustainable way. While they have made big
progress in laying the foundations for success in previous years, they must continue to
drive innovations and to strengthen their systems and processes.
To become a truly sustainable company, Adidas have taken a mature approach for the
following five areas:
Products and planet: The adidas Group strives to integrate environmental thinking
and acting into its daily operations. They empower their own employees to develop
smarter solutions in product creation and be more resource efficient. The goal is to
substantially improve the Group’s environmental footprint by changing their
processes across every part of their value chain, from innovation and product design
via development and manufacturing operations to their own stores and other sales
channels. They have set measurable targets to be achieved by 2015 and progress
against these targets will be measured on an annual basis.
Their employees: They are the most important asset of their company! Becoming
the leader in the sporting goods industry depends upon the potential, dedication,
knowledge and performance of their employees and excellence of their leaders. As
such, they place considerable effort into creating a work environment that stimulates
innovation, team spirit, engagement and achievement. They promote a performance
culture based on strong leadership and therefore link employee compensation to
Group and individual achievements. They aim to continuously develop their
employees with opportunities for career progression, while upholding a culture that
celebrates diversity and encourages global mobility. They also know how important it
is to continue to attract and recruit new people to the adidas Group. To become a
world-class recruiter they have launched innovative programs to raise their profile
with potential employees.
Performing well on these critical issues will help Adidas in their ambition to be the
global leader in the sporting goods industry.
HISTORY
Adidas started in a wash room and conquered the world. And in-between, they have
scored big and also, sometimes, struggled to reach their goals. They have done their
best for the best. They have improved and grown. Looking ahead to the future, always
remembering where they came from. This is their story.
Every great story has a beginning. This one started in a small town in Bavaria,
Germany. After first steps in his mother’s wash kitchen, Adi Dassler registered the
“Gebrüder Dassler Schuhfabrik” in 1924 and embarked on his mission to provide
athletes with the best possible equipment. Gold medals in Amsterdam (1928, Lina
Radke) and Berlin (1936, Jesse Owens) were first rewards and milestones – and only
the start of their story.
FOUNDING FATHER
On August 18, 1949, Adi Dassler started over again at the age of 49, registered the
“Adi Dassler adidas Sportschuhfabrik” and set to work with 47 employees in the small
town of Herzogenaurach. On the same day, he registered a shoe that included the
A MIRACLE IN BERN
Who would have thought that screw-in-studs on lightweight football boots would help
write history? When the German national football team faced the unbeatable
Hungarians in the 1954 World Cup final, they won so much more than just a trophy.
Their unbelievable victory would be heard around the world for decades to come. And
it made adidas and its founder a household name on football pitches everywhere.
"WHAT A DASSLER"
Two brothers working together for the best of the athlete. Sounds familiar? Well this
story started across the channel, miles away from Herzogenaurach. While adidas
continued to grow after its own 1954 miracle, two British men by the names of Joe
and Jeff Foster gave their grandfather’s company “J.W. Foster and Sons” (founded in
1895) a new name: Reebok. Keep it in mind for now; they will get back to this later.
What’s in a name? Everything, when you name it after a “Kaiser”. When the Franz
Beckenbauer tracksuit model celebrated its debut, it became the first piece of apparel
for adidas and opened a whole new business to a company that, so far, was famous for
shoes.
THE ATHLETES’ TRUST
How do you consistently earn the trust of world-class athletes through the decades?
Produce innovative products that make them better for once. Adi Dassler’s secret to
success had an additional personal ingredient: he met with athletes (some of them
even as visitors in Herzogenaurach), listened carefully to what they said and
constantly observed what can be improved or even invented to support their needs.
The best of the best trusted adidas and its founder from the beginning. And that would
not change throughout the decades to come.
Footwear for gold medal winners? Check. Apparel for record breakers? Check. Now,
how about something to kick with? Consider it done. In 1970, adidas conquered yet
another branch of the sporting goods industry, delivering the official ball, TELSTAR,
for the 1970 FIFA World Cup™. As the name TELSTAR already tells, the ball was
designed to improve visibility on Black and White TV. It was the beginning of a
wonderful partnership, with adidas providing the Official Match Ball to every FIFA
World Cup™ that followed.
The best businesses seem to come out of family. Across the pond, a father and son hit
the US roads to sell shoes out of their trunk. Saul and Bruce Katz started the first
company to ever combine advanced materials and technologies in casual footwear:
Rockport. Again, this will be important later on.
In 1972, the world turned to Germany when the Olympic Games opened in Munich.
Just in time for the event, adidas presented a new logo that was here to stay: the
Trefoil. Then, symbolizing performance. Today, the adidas Originals collection
stands for lifestyle and street. Times may change, but trefoil quality will always
remain
From Herzogenaurach to the world: the 3-Stripes kept expanding to more and more
sports throughout the years. This is reflected in the broad range of athletes who trust
adidas to make them better: besides the usual suspects such as the world’s best
football players, like the Argentinean national team, outdoor icon Reinhold Messner
climbed mountains in adidas shoes and gymnast Nadia Comaneci scored a perfect 10,
repeatedly. BECOMING A MULTI-SPORTS SPECIALIST
DEATH OF A SHOEMAKER
Adi Dassler died on September 6, shortly before his 78th birthday. The man who
almost single-handedly redefined the sporting goods industry and lifted the benchmark
by a mile left behind a flourishing company. The end of one Dassler era became the
start of another: Adi’s son Horst, with support from his mother Käthe, took over and –
among many other things – continued to master his invention, the modern sports
marketing.
What can you do with just three employees? Lay the foundation for a future market
leader, for example. While adidas continued its flourishing ways, Gary Adams and
two colleagues started a company in California that will produce metalwoods tailored
to make players better. TaylorMade will eventually become market leader, proving
that three is not always a crowd.
A BROTHER-TO-BE FINDING ITS WAY – REEBOK ON THE MOVE
30 years after Joe and Jeff Foster renamed their grandfather’s company, Reebok was
fit to lead. Literally. Following the booming fitness trend, women around the world
work out in the Reebok Freestyle while fitness professional Gin Miller became the
face of Step Reebok. And that’s not all: THE PUMP innovation hits markets in 1989,
making Reebok a household name in other categories as well.
REEBOK ADVERTISING
It sounds quite common today, but back in the ‘80s, a computer did not belong, much
less fit, in your shoe. Didn’t stop adidas from putting it in there. An innovation ahead
of its time, the Micropacer featured a system – known today as miCoach – providing
performance statistics to athletes.
When US-based hip hop group Run DMC released “my adidas” it was about setting
the record straight about hard working people in troubled neighborhoods and about
pure enthusiasm about their sneakers. Adidas itself only found out about this love
story when the band held up the 3-Stripes shoes during a concert in front of 40.000
fans – one of these concertgoers was an adidas employee. The song became a hit and
Run DMC and adidas unexpected and unique partners. This merge of art and sports
not only set the everlasting street fashion trend off but also marked the birth of non-
athletic promotions in the sporting goods industry.
Horst Dassler’s sudden death in 1987, two years after his mother Käthe passed away,
meant troubled waters for adidas. After the Dassler family exited the company, it is
changing leadership and questionable strategic decisions that caused a record loss in
1992 and brought the company near bankruptcy. But who does not love a comeback
story?
Robert Louis-Dreyfus. The new CEO made an almost impossible job seem easy.
Together with his partner Christian Tourres, he understood that the almost bankrupt
adidas did not need to be reinvented; it simply needed a new direction. He turned the
sleeping giant from sales- to a marketing-driven company and steers adidas back on
the growth path. In 1995, six years after becoming a corporation, adidas went public
and its new marketing slogan could not sum it up better: “They knew then, they know
now”.
While the company was still dealing with financial challenges, a new marketing team
refocused adidas on what it has been known for years: making athletes better. Some of
the most famous adidas innovations, such as Torsion (1989), the Equipment concept
(1991), the Streetball campaign (1992) and the Predator football boot (1994), were
born in this era.
The year the company’s share is admitted to the DAX, comprising Germany’s 30
largest quoted companies, adidas-Salomon AG committed itself to its roots and moved
into new headquarters just outside Herzogenaurach. The “World of Sports”, a former
US military base turned campus, is constantly renewed, extended and modernized
over the following years to house the growing company and its employees. As of
2013, the World of Sports is home to more than 3,000 adidas employees, offers
outdoor sports facilities, a cafeteria, a kindergarten and a gym.
AN INNOVATIVE LEADER
Herbert Hainer became the new CEO of adidas-Salomon AG and, with him; the
company’s focus went even more to innovation. ClimaCool (2002), adizero (2004)
and the F50 football boot, launched just in time for the 2006 FIFA World Cup™ in
Germany, became market hits – as did the new CEO. Herbert Hainer will lead the
adidas Group from one record to the next and will become the longest-standing CEO
of all DAX companies in 2011 . Herbert Hainer is surrounded by a very
international team of Executive Board members. It currently consists of Robin
J. Stalker from New Zealand (Finance), Eric Liedtke (Global Brands) and
Glenn Bennett (Global Operations), both from the USA, as well as
Roland Auschel from Germany(Global Sales).
As the new century started, the adidas Group reinvented the game again. In addition to
its sport performance offering, adidas is the first in the industry to introduce a new
lifestyle segment, focusing on sports-inspired street wear. In the years to come, new
partnerships with Yoshji Yamamoto (2002) and Stella McCartney (2004) were born
along with exciting labels such as Y-3 (2003) and Porsche Design Sport (2007).
IMPOSSIBLE? JUST A BIG WORD.
In one of its most memorable marketing campaigns, adidas lets its biggest athletes
including David Beckham, Haile Gebrselassie and Muhammad and Laila Ali face
their fears, defeats and challenges only to prove that, indeed, impossible is nothing.
The slogan became the synonym for reaching one’s goals.
One year after adidas and Salomon go their separate ways, when the latter and its
brands (excluding TaylorMade) were sold to Amer Sports, adidas acquired Reebok,
including the brands Rockport and Reebok-CCM Hockey, and brought together two of
the world’s most respected and best-known companies in the sporting goods industry.
In June, the company was re-named adidas AG.
When you are already great, how do you become even better? You keep on training.
Or join forces with someone who complements you and your strengths.
In 2011, the adidas Group acquired the outdoor specialist Five Ten, and TaylorMade
first the golf company Ashworth in 2009 and then, three years later, the golf
equipment company Adams Golf – making the Group even stronger for the road
ahead.
From the court to the catwalk and the stadium to the street. The adidas brand offers
apparel and footwear for every sport, every fashion, every style, whether you are an
athlete or fashionista. And in 2011, adidas brought together sport, street and style for
the first time in one campaign to tell the world what it means to go all in, heart
overhead, inclusion over ego. “All in” (featured by Lionel Messi, David Beckham,
Katy Perry and Derrick Rose) lived from the idea that, no matter your goals or
challenges, you have to go all in for the ultimate success.
If it is already in your DNA, why reinvent the wheel? After Reebok dominated the
fitness and aerobics wave / movement in the 1980s with groundbreaking products and
marketing, the company signs a long-term partnership with CrossFit, core strength and
conditioning program, in 2011. Two years later, the studio categories Yoga, Dance
and Aerobics followed and Reebok has been back on track to become THE fitness
brand with the goal to empower consumers to be fit for life. Or should they say
REEbecome?
2013
ENDLESS INNOVATION
Running changed forever. Big words. History will tell us if it is true. Adidas
introduced the Energy Boost running shoe which featured a completely new
cushioning material. Created in cooperation with the German chemical company
BASF, the material combines former contradictory benefits of soft and responsive
cushioning for a running experience unlike any other.
As the world changes, so do they. While a computer in your shoe seemed a bit weird
in the ‘80s, it now is a professional training system: miCoach allows athletes to track
record and improve their performance in sports, including football, running or
basketball. It becomes a category of its own. On top, adidas launches a new sub-
brand: adidas NEO targets the young generation with social tools such as a social
mirror and the opportunity to, literally, shop at the window with the touch of a
button. And the 2012 London Olympic Games become a happening on the adidas
social channels, bringing behind-the-scenes events, competitions and athlete news to
the young consumer.
They do not know what the future in sports will bring but it will not stop us from
shaping it. They will keep pushing the envelope with continuous innovations. And
more importantly: they will make sure that they give you the tools you need to be the
best athlete possible. Just how Adi wanted it.
Company Logo’s
An Intriguing History
the evolution of Adidas logo and its popularity as imagery has an interesting
history. Adi Dassler had a unique idea in mind. He thought about a logo design
that could give its brand a unique look so that it retains longer in the memory of
the people. He then came up with those iconic three stripes. In 1967, the first
official logo looked like this:
The three stripes went well with the masses and complemented the slogan of the
and with the 3 Stripes.” Even Adi Dassler would not have known then that the three stripes would gain such ma
The Trefoil
it was not until 1972 that the Adi Dassler designed another and the most iconic one
of the Adidas logos: The Trefoil. As the company spread its business in apparel and
leisure industry, Adi Dassler realized the need for a more apt logo design that
could demonstrate industrial diversity of his company. Adi Dassler did some
creativity with the overall design and transformed the original “three-striped” logo
into the “trefoil”. The idea made sense to the diversity of the brand and the new
logo became an instant hit with the masses.
The Triangle
In 1990, Adidas did one more makeover with the logo design. Creative director
Peter Moore had an interesting idea in mind. He proposed that the three stripes
should be slanted like a triangle. Adi Dassler liked the idea and approved it.
The first version of the logo was visible on the equipment products of the
company. Finally in 1997, the logo became the corporate symbol of the Adidas
Company,
while the classic Trefoil made exclusive for the traditional products.
The three slanted stripes of Adidas logo implicitly suggest a meaningful message
to the audience. The triangular shape is symbolic of mountain which stands for the
challenges to be overcome. It goes with the type of product line of the Adidas that
mainly sells the shoes for the athletes.
Adidas brands
REEBOK
At Reebok, they love fitness. It's what wakes them up in the morning, what they think about
all day and what drives them toward tomorrow.
They want to invite people to see fitness the way they do, to be passionate about it the
way they are.
They believe fitness can be surprising, amazing and fun. They are so inspired by the impact
fitness can have and they want to bring it to the world in a fun, intriguing way.
TYLORMADE
ROCKPORT
In 1971, Rockport started with a simple philosophy: Engineer comfortable shoes using the
latest in advanced technologies. Rockport was the first to engineer performance walking
comfort in casual and dress shoes.
40 years later, Rockport continues to make style comfortable for metropolitan professionals
around the world. They create collections that are sophisticated and stylish without
compromising comfort or functionality. Today, their philosophy is simple: Walkability. They
are about making the most walk able shoes in the industry. Their shoes deliver on their
promise to make style comfortable and enable metropolitan professionals to look good
longer.
The forever sports division spotlights “sports performance” products that Adidas aims at
fashion oriented customers. Forever Sports offers products that compete with Nike,
Reebok, Fila and Puma.
Original Division
Original Division focuses mainly on leisure products. The division offers three product
segments: Re-introduced, or limited volume remakes of the classical goods; Re-
interpreted, or updated products based on Adidas’ “sport” version; and Re-designed,
based on older Adidas styles, but as the company explains, “put in today’s fashion
context.” Adidas wants this division to compete with retailers such as Polo, Abercrombie
& Fitch and GAP.
Equipment Division
The equipment division will be launched in winter 2002. This division will
create multifunctional sports products. The distribution of these products will be
in chosen markets like Germany, France and the US.
Adidas has undergone this structural change but one of its divisions has still not hit the
markets. This new structure of Adidas will provide Adidas with the dynamic framework
that it needs to aggressively expand its businesses and will enable it to deliver significant
growth rates in the coming years.
Organizational Culture of Adidas
Before 1993, that is when Louis-Dreyfus joined as the CEO of Adidas, Adidas was a
very formal and centralized company. All the top management was German and as
Louis- Dreyfus recalls, “it was a very self-centered German company which was
absolutely sure that it was right.” There was a lot of bureaucracy in the company which
had built up over several generations. Louis-Dreyfus realized this fact on the very first
day when he joined as the President of Adidas, when he was asked to approve a
salesman expense ac count for $ 300. He soon realized that this was the company’s
biggest enemy.
Adidas more or less tried to follow the lines of its rival Nike. Nike has a strong sports-
oriented culture and is promoted through company practices such as paying employees
extra for biking to work instead of driving. Nike is recognized worldwide as an athlete’s
company which, hire former college, professional and Olympic athletes to design and
market its shoes and clothing for sports enthusiasts. The company chooses to call its
headquarters a "campus" instead of an office. Employees are called "players,"
supervisors are "coaches" and meetings are "huddles."
Nike has been striving towards an inner culture that reflects this mantra. Employees are
given an hour and a half for lunch to play sports or simply workout. The new Nike is not
just about shoes and slam-dunks, but about promoting a lifestyle. All new employees
view a video of sports highlights accompanied by a soundtrack that discusses the soul of
the athlete and the competitive spirit. In addition, management sends weekly emails to
update employees on the recent successes of Nike-sponsored athletes, and often hosts
spokespeople to motivate and thank its staff for contributions to the sports world.
Adopting a new culture is not an easy job. The primary steps taken by Louis-Dreyfus
were, that as soon as he joined Adidas as its CEO, he replaced nearly all of the senior
managers and brought in young managers. He slashed the company's bureaucracy,
adopted American accounting rules and brought in international management talent. In
a matter of weeks, the entire German senior management had been fired. The company's
chief financial officer was Australian and the international marketing manager was a
Swede. English became the official language of the head office and no Germans remained
on the managing board of the company other than himself and some other trusted aides.
In another break with the traditional German workplace, corporate life was made almost
gratingly informal. Unlike other German managers, the managers of Adidas show up for
work wearing sweatshirts and sneakers. A lot of freedom is now given to the employees
working there. None of the decisions are interfered with and no complaints are made
about any decision.
The culture of Adidas does not only care for the internal environment but also the external
environment. Its culture now emphasizes on socially responsible, safe and environmentally
sustainable practices in the company and its supply chain to enhance the value of its brands.
Adidas emphasizes on the fact that athletes need a healthy planet, just as they need the best
products, as it is hard to run when the air is poisoned.
Globally, Adidas has made, or is in the process of making the following commitments
towards reducing its impact on the environment:
2. ISO 14000 (a set of international standards which help make the world a better place to
live) Certification.
5. teaming up with other organizations and companies to help Adidas develop sustainable
socially responsible business practices.
The brand values of the company are authenticity, inspiration, honesty and commitment that
are derived from sports. They form the basis of its Standards of Engagement, the company’s
code of conduct that aims to ensure that its suppliers´ factories are safe, fair places in which
to work.
Adidas vows to adhere to social and environmental laws, directives and guidelines while
continually improving upon its own contribution to a sustainable society.
Adidas aims to communicate with all stakeholders in an atmosphere of mutual trust and
respect. It provides them with appropriate information related to the social and environmental
performance of the group on a regular basis.
WORKING AT ADIDAS
Working at adidas is more than just a job. It's a mindset. A way of life. It's a place
where your passion for sport and a sporting lifestyle integrates seamlessly with your
working life. It's a place where the rules of the game are clear and they play fair.
It's a place where work and play are one and the same. Where passionate and
dedicated people from all walks of life come together to deliver one shared goal—to
be the best. Adidas founder, Adi Dassler, was an athlete. He was inspired by a
single idea: to provide every athlete with the best footwear for his or her respective
discipline. And 85 years later, they have more than 40,000 employees worldwide
who still follow the same principles. Adidas employees, regardless of stature, put this
same passion and commitment to innovation into each concept, component,
process, and product they produce, as Adi did on his very first pair of shoes. For
adidas to continue to evolve and grow, they offer each and every employee
throughout the global organization the chance to demonstrate and improve their
capabilities. They provide empowerment and training to help them achieve their
goals, on and off the court. They reward performance, offer opportunities on a global
level and encourage open communication at every level. Working as a team to
achieve our goals is natural at Adidas. Supporting and celebrating each other's
successes give employees of adidas a sense of being. It's a place where people feel
inspired and start each working day as excited as you were on your first. At adidas
they have the opportunity to unite the world through sport!
The Basics
Health Insurance (Medical, Dental, Vision & Prescription Drugs)
Retirement Plans (Pension/401K)
Supplemental Insurance (Disability/Life/Accident)
Compensation
You can rest assured that the adidas Group total compensation package is
effective in attracting and retaining top candidates and employees. Why? They
compare our plans side-by-side with those offered by other companies and
also listen to employees and new prospects for their reactions to our benefits
package.
Lifestyle:
Personal trainers
Onsite gyms
Track and field, basketball, tennis and volleyball facilities
Cross-Fit Facilities
Discounted travel and organized sporting and adventure weekends
Company-wide sporting events
Opportunities to meet visiting athletes and celebrities
Competitions and celebrations
Tickets to world sporting events and games
Product discounts for you, friends and family
Culture:
It's not uncommon during lunch hour to find adidas employees engaging in
their favorite sport at one of their athletic facilities or traveling to one of their
170+ locations worldwide for a business meeting. One thing is certain for
adidas Group employees; they are always ready for an adventure, in life, in
work and in giving back!
Forced Labour
Business partners must not use forced labour, whether in the form of prison labour,
indentured labour, bonded labour or otherwise. No employee may be compelled to
work through force or Intimidation of any form or as a means of political coercion or
as punishment for holding or expressing political views.
Child Labour
Business partners must not employ children who are less than 15 years old, or
less than the age For completing compulsory education in the country of
manufacture where such age is higher than 15.
Discrimination
Business partners must not discriminate in recruitment and employment practices. Decisions
About hiring, salary, benefits, training opportunities, work assignments, advancement,
discipline And termination must be based solely on ability to perform the job, rather than on
the basis of Personal characteristics or beliefs, such as race, national origin, gender,
religion, age, disability, marital status, parental status, association membership, sexual
orientation or political opinion. Additionally, business partners must implement effective
measures to protect migrant employees against any form of discrimination and to provide
appropriate support services that reflect their special status.
Disciplinary Practices
Employees must be treated with respect and dignity. No employee may be subjected
to any Physical, sexual, psychological or verbal harassment or abuse, or to fines or
penalties as a Disciplinary measure. Business partners must publicize and enforce a
non-retaliation policy that permits factory employees to express their concerns about
workplace conditions directly to factory management or to us without fear of
retribution or losing their jobs.
Environmental Requirements
Business partners must make progressive improvement in environmental
performance in their own operations and require the same of their partners, suppliers
and subcontractors. This Includes: integrating principles of sustainability into
business decisions; responsible use of natural Resources; adoption of cleaner
production and pollution prevention measures; and designing and Developing
products, materials and technologies according to the principles of sustainability.
EXECUTIVE BOARD
Adidas Executive Board is composed of five members. Each member is responsible for a major
business area within the Group.
HERBERT HAINER -
CHIEF EXECUTIVE
OFFICER
CV - Eric Liedtke
SUPERVISORY BOARD
The Supervisory Board of adidas AG - in accordance with the German Co-Determination
Act (Mitbestimmungsgesetz) is composed of twelve members.
The core functions of the Supervisory Board include the appointment and dismissal of Executive
Board members, the supervision and consultancy of the Executive Board, the approval of the financial
statements as well as the authorization of important operative planning and corporate decisions.
The term in office of all members of the Supervisory Board started with the end of the Annual
General Meeting of adidas AG on May 8, 2014. By rotation, the next Supervisory Board elections
will be held in 2019. In accordance with the German Co-Determination Act (Mitbestimmungsgesetz -
MitBestG) six of its members are elected by the Annual General Meeting and six members are elected
by the employees.
For further information on the Supervisory Board members, please see below.
IGOR LANDAU, CHAIRMAN
BORN // 1944
NATIONALITY // French PROFESSION // Pensioner, Member of the Board of Directors,
EXERCISED Sanofi-Aventis S.A., Paris, France MANDATES
DIETER HAUENSTEIN
BORN // 1957
NATIONALITY // German
EXERCISED PROFESSION // Member of the Works
Council, Herzogenaurach, Germany
DR. WOLFGANG JAEGER DR. STEFAN JENTZSCH
HERBERT KAUFFMANN
KATJA KRAUS
MANDATES
BORN // 1954
NATIONALITY // German
EXERCISED
PROFESSION //
Managing Director,
Hans-Böckler-
Stiftung, Düsseldorf,
Germany
BORN // 1951
NATIONALITY // German
EXERCISED PROFESSION // Independent
Management Consultant, Stuttgart, Germany
MANDATES
BORN // 1960
NATIONALITY // German
EXERCISED
PROFESSION //
Corporate Finance
Consultant, Partner, BORN // 1970
Perella Weinberg Partners NATIONALITY // German
UK LLP, London, Great EXERCISED PROFESSION // Managing Partner Jung
Britain von Matt/sports GmbH, Hamburg, Germany
HEIDI THALER-VEH
ROLAND NOSKO
BORN // 1964
NATIONALITY // German
EXERCISED
PROFESSION //
Executive Vice
President Human
Resources and BORN // 1962
NATIONALITY // German
Infrastructure
EXERCISED PROFESSION // Member of the Central
Services, Henkel
AG & Co. KGaA Works Council, adidas AG
*Employee Representative
MANDATES
BORN // 1958
NATIONALITY // German
EXERCIS
ED
PROFES
SION //
Trade
Union
Official,
IG BCE,
Headquart
er
Nurember
g,
Nurember
g,
Germany
MANDA
TES
BORN // 1954
NATIONALITY // German
EXERCIS
ED
PROFESS
ION //
Sales
Director
Customer
Service,
Central Europe West, adidas AG
SUPPLY CHAIN APPROACH
Besides their own employees, workers in their suppliers’ factories play a central role in
their sustainability programme.
It was concern for their working conditions and well-being that led us to establish their
"Workplace Standards", the supply chain code of conduct which also covers workers’ health and
safety and provisions to ensure environmentally sound factory operations.
As their supply chain is large, multi-tiered and varied, they have a detailed and systematic approach to
managing the relationships with their suppliers. To enforce compliance with adidas Standards they
have a multi-level monitoring and enforcement process in place, including the use of an innovative
rating system for the assessment of their suppliers. The rating results are shared with adidas Sourcing
teams which then decide whether and to which extent they continue the business relationship with a
specific supplier.
Giving workers the opportunity to air grievances in confidence is a key element in helping us
to ensure fair, safe and healthy workplace conditions. An approved factory has to place open
letters on the notice boards that tells workers whom they can contact to address issues of
concern. The letters inform workers that they will help them find solutions to factory issues, if
they cannot find solutions through the factory’s usual mechanisms. Workers are also
provided with local numbers to call and addresses to write to. In some cases the telephone
hotlines that they use are run by non-profit organizations and in other cases their own field
staff take the calls and respond to the workers' concerns. A lot of their time is spent following
up on calls or requests from workers about hard-to-fix issues, such as the wrong salary
payment, working too many hours, or being unfairly let go. In 2012, they piloted a new
management-worker communication project with one of their suppliers in Indonesia: workers
can now send SMS text messages to hotlines to raise the alarm if they think their rights are
being compromised. Workers' mobile numbers are being anonymously gathered so factory
management can send out group texts reminding workers of safety issues or letting them
know about changes in policy.
The adidas Group continues to grow, and one way it grows is by entering agreements with
other ‘specialty’ businesses to make, sell or distribute their products. This is what adidas call
licensing. Because of licensing and the use of agents, the adidas Group also has many
indirect suppliers. These are factories working not directly for adidas, but for other
customers. To manage this part of their supply chain adidas ask their agents and licensees
to copy their own ‘in-house’ monitoring approach and have people check the factories and
help them stay true to adidas rules. In many cases, the companies managing adidas indirect
suppliers use external social auditing firms to do the checking. Adidas call these consultants
external monitors.
Have sound management systems in place at a supplier level which reduce and eliminate
environmental hazards
Have environmental and resource management embedded in their sourcing decisions and the selection
and retention of suppliers
Reduce the overall environmental footprint of material sourcing and the manufacture of their
products.
In order to be able to manage the environmental risks within their supply chain, they
developed and implemented a Supplier Risk Assessment Tool and an Environmental Assessment
Tool, which rank their footwear, apparel and accessories & gear suppliers, but also selected
material suppliers, according to their level of environmental risk. This in turn has helped us to
develop targeted training and capacity-building programs for their suppliers as well as
appropriate standards and policies.
Adidas supply chain is global and multi- layered, with many different types of business
partners, some of whom are directly contracted factories, while others are not.
In 2013, the top five countries per region by number of supplier sites were:
The adidas Group is one of the very few companies in the industry that has fully disclosed its
global supplier list,
Adidas influence in terms of social and environmental compliance is linked to the strength of
their partnerships, and is often proportional to the scale and stability of the orders placed with
their suppliers.
The adidas Group holds direct contractual relationships with its core suppliers who are
centrally supervised by Global Operations. Global Operations is a Group function which
manages product development, commercialization, distribution and supervision of the
manufacture of apparel, footwear and accessories for the adidas, Reebok and TaylorMade-
adidas Golf segments. These suppliers produce the predominant share of the total sourcing
volume of the Group.
TYPES OF SUPPLIERS
Adidas suppliers fall into five broad categories:
Main suppliers. They have a direct contractual relationship with the adidas Group for the
supply of products, whether for export or domestic market consumption.
Subcontractors. These are factories that have been subcontracted by their suppliers to
perform manufacturing operations the main suppliers are not capable of doing in their own
facility.
Material and other service providers. These suppliers may not have a direct business
relationship with the adidas Group, but supply goods and services to their main
suppliers.
Licensees. Independent companies which manage the design, production and distribution of
specific products, under license to the adidas Group. In 2013, the adidas Group worked with
57 licensees whose suppliers sourced products from 401 factories in 50 countries.
In 2013, they trained nearly 3,000 staff and personnel through 148 training sessions. They have
three main approaches to training content:
Fundamental training: includes introductory training for the Workplace Standards, Fair
Factories Clearinghouse (FFC) data entries, new factory approval process and the SEA
operating guidelines.
Performance training: includes detailed training on specific issues on labor, health, safety and
environmental practices, as well as initial assessment monitoring methods.
Sustainability training: includes training in the KPI and rating tools, sustainable compliance
planning and supplier self-assessment methods.
SUPPLIER TRAINING SESSIONS BY TYPE IN 2013
It was launched in 2008 and builds on years of environmental initiatives, drawing them together into
a coherent programme to improve the environmental performance of their administration offices,
manufacturing sites and distribution centers.
Adidas set ambitious targets in the areas of energy, water and paper consumption, carbon
emissions and reduction of household waste, and each individual site – be it one of their
offices, distribution centers or their own factories around the globe – contributes to meeting
these targets. Adidas knows this cannot be done without the active involve ment of their
people. It is in their daily working lives where they need to make the changes that will
result in the adidas Group being a more sustainable company, one that achieves its
environmental ambitions. So adidas have established the Green Team concept.
CERTIFICATION TO ISO 14001
In order to manage and influence environmental impacts at their own sites, adidas have implemented
a global Group headquarter-based environmental management system that is certified according to the
international standard ISO 14001. Twelve major locations around the globe already have certified
systems in place which are linked into the global Group system. More sites plan to join this system
and to become certified within the next years.
ISO 14001 CERTIFICATION - INTERNAL COMMUNICATION
As of December 2013, the following sites of the Adidas Group have certified environmental managements systems:
Certified
Name of site Region EMS standard
since
Adidas Group Distribution Centre, Spartanburg, USA AMERICAS ISO 14001 2010
Sports Licensed Division Factory, Indianapolis, USA AMERICAS ISO 14001 2011
EMAS; ISO
Adidas Footwear Factory, Scheinfeld I, Germany EMEA 1998; 2012
14001
European Distribution Centre, Scheinfeld II, Germany EMEA ISO 14001 2013
There are cases where adidas may ask you for personal information, such as your name,
address, date of birth, gender, email address, etc. They do this for instance when you
register for contests/promotions, respond to communication such as e-mail, and for services
that require registration or subscription. If you would like to be on their mailing list, they will
ask you to actively opt-in. They might also collect personal information from you about a third
party, for instance if the website allows you to send an e-postcard, in which case they need
to know the name and e-mail address of the recipient. That information will only be used for
the specific purpose (delivering the e-postcard) and adidas will not further contact the third
party unless the third party contacts us.
They use 'cookies' to gather information about your visits to their website and enhance
your experience. You can find more information on how they use cookies in the section.
When you visit their website they collect so called ‘click stream’ data (server address,
domain name etc.). This information can be combined with information you have provided to
us (for instance by registering), which will enable us to analyze and better customize your
visits
All personal information that they obtain about you will be recorded, used and protected by
us in accordance with current data protection legislation and this privacy policy. They will
primarily use your personal information to provide products and services to you and, for
example:
To send you information/materials via e-mail or sms-messages about products, offers and
news they think could interest you. This information may relate to products, offers and news
of adidas and/or its licensees or carefully selected commercial partners. They only send you
this if you have opted-in to receive adidas e-mails and/or sms messages. In case you do not
want to receive any e-mails and/or sms messages from us anymore, or if you want to modify
your personal data or want your personal data to be deleted from their database, they refer
you to the 'Opt-out, delete or modify personal information' section below
To analyze visits to the website and learn about the interests of their visitors in aggregate
and also on personal level to better understand your interest and need, so they can improve
their products and services and deliver to you the type of content, features and promotions
that you are most interested in.
Who manages Visitors’ Information
The global and local websites of adidas and the information collected, are managed and
controlled by adidas AG (Adi-Dassler-Platz 1-2, 91074 Herzogenaurach, Germany. The
servers that make the global and local websites of adidas available are located in the USA. If
you are located outside the USA please note that the information you provide will be
transferred to the USA and by submitting the information you authorize this transfer. Adidas
has entered into an agreement with the hosting company in the USA to provide sufficient
safeguards for the protection of your data. Personal information will be handled in
accordance with current data protection legislation and this Privacy Policy.
In order to protect the information you provide to us by visiting their website they have
implemented various security measures. Your personal information is contained behind
secured networks and is only accessible by a limited number of people, who have special
access rights and are required to keep the information confidential.
Please keep in mind though that whenever you give out personal information online there is
a risk that third parties may intercept and use that information. While adidas strives to protect
its user's personal information and privacy, they cannot guarantee the security of any
information you disclose online and you do so at your own risk.
Children’s’ privacy
Adidas encourages parents and guardians to spend time online with their children and to
participate in the activities offered with the multitude of sites the World Wide Web (WWW)
offers.
When a child tries to submit his/her registration he/she will be asked to submit the same
kind of information as indicated in the above section ‘Information they collect from visitors’.
Furthermore the information provided by the child and gathered (for instance through the use
of cookies) during his/her visit may be used as indicated in the said above section.
Adidas is committed to protect the privacy of children and has no intention of collecting
personal data from children under the age of 13. If you are a child under the age of 13 and
you try to submit your registration, the registration will be rejected and they will inform you
that they do not accept registrations from children under 13. They encourage parents and
guardians of children under 13 to regularly check and monitor their children’s use of e-mail
and other activities online.
Third Parties
Other than to the companies belonging to the adidas Group for the purposes set out above,
and except as described below they do not sell, trade or otherwise transfer your personal
information to third parties without informing you in advance and in accordance with
applicable data protection law. All members of the adidas Group value the privacy and
protection of your personal information and have similar privacy policies in place. Your data
may be transferred to web site hosting partners and other parties who assist us in designing
and operating the website, executing services (for instance prize fulfillment) or help us
analyze collected data. These parties will only use your data for the purpose of carrying out
the work as indicated and will be required to keep the information confidential. They will also
release personal data if such is required by law.
Links to Third Parties
For your convenience and to improve the usage of the website they insert links to third
parties, for which this privacy policy does not apply. These links take you outside their
service and off the adidas site and are beyond their control. This includes links from partners
that may use adidas' logos as part of a co-branding agreement. The sites you can link to
have their own separate privacy policy and although they seek to protect the integrity of their
site, adidas is not responsible and cannot be held liable for the content and activities of
these sites. Your visit/access to these sites is therefore entirely at your own risk. Please
note that these other sites may send their own cookies to users, collect data or solicit
personal information
Use of cookies
A cookie is a small string of information that the website that you visit transfers to your
computer for identification purposes. Cookies can be used to follow your activity on the
website and that information helps us to understand your preferences and improve your
website experience. Cookies are also used to remember for instance your user name and
password.
You can turn off all cookies, in case you prefer not to receive them. You can also have your
computer warn you whenever cookies are being used. For both options you have to adjust
your browser settings (like internet explorer). There are also software products available that
can manage cookies for you. Please be aware though that when you have set your
computer to reject cookies, it can limit the functionality of the website you visit and it’s
possible then that you do not have access to some of the features on the website.
You may cancel your registration at any time, and you can choose to opt-out of receiving any
e-mails and/or sms messages from adidas. Additionally you can choose to have all your
personal information deleted from their database.
If you want to opt-out, delete or modify your personal information, please visit the registration
page. They encourage you promptly to update your personal information if it changes.
They may from time to time need to amend this policy, due to changes in regulations and to
keep up with new developments and possibilities on the internet. They therefore reserve the
right at their discretion to make these changes and ask you to check this page periodically,
as you are bound by these changes when visiting their website.
The local adidas websites, accessible through the adidas.com site have similar privacy
policies in place, but there could be some differences due to local regulations. We therefore
encourage you to read the privacy policy of each adidas site you visit.
If you have any questions or comments relating to their website and/or the privacy
policy, please write to us: adidas AG, Adi-Dassler-Str. 1-2, 91074 Herzogenaurach,
Germany
Your consent
By using the adidas websites you signify that you agree to the terms of this Privacy Policy as
well as to their Terms and Conditions. If you do not agree with the terms of their Privacy
Policy and their Terms and Conditions please do not provide us with personal information
and leave this website.
Online policy
The Privacy Policy does not extend to anything that is inherent in the operation of the
internet, and therefore beyond adidas' control, and is not to be applied in any manner
contrary to applicable law or governmental regulation. This online privacy policy only applies
to information collected through their website and not to information collected offline.
Adidas value feedback from their stakeholders about their programme and they appreciate
positive recognition from international institutions and rating agencies, non-governmental
organizations (NGOs) and socially responsible investment (SRI) analysts. These
organizations evaluate adidas work through in-depth analysis of the company’s social and
environmental programme, including document review and interviews with employees and
management.
The following awards demonstrate external recognition and acknowledgement of the adidas
Group’s sustainability initiatives worldwide:
2014 – adidas Group among the "Global 100 Most Sustainable Corporations in the
World" for the 10th time in a row; first time in top 10 - ranked 8th
2013 - adidas AG included in Dow Jones Sustainability Indices for 14th time - Industry
Leader for 10th time
2013 - adidas AG again included in the STOXX® Global ESG Leaders indices
2013 – Continued inclusion in the FTSE4Good Index
2013 - Reconfirmed inclusion in the Ethibel PIONEER and Ethibel EXCELLENCE
Investment Registers
2012 - Inclusion in the Carbon Disclosure Leadership Index for Germany, Austria and
Switzerland
Inclusion in the Vigeo Group Indexes
Inclusion in the ECPI Ethical Index EMU
2011 – Silver medal for adidas AG as 'Sustainable Retail Company 2011'
2009 - Best rating by European consumer organizations
2008 – Re-accreditation by the Fair Labor Association
2007 – B.A.U.M. Environmental Award
2006 – Product rated best for quality and CSR by Stiftung Warentest
2006 – adidas Group among Top Employers of the Year
2005 – Environmental Manager of the year
2002/2004 – Best Sustainability Reporting
2014 – ADIDAS GROUP AMONG THE "GLOBAL 100 MOST SUSTAINABLE
CORPPORATIONS IN THE WORLD" FOR 10TH TIME IN A ROW; FIRST TIME
IN TOP 10 - RANKED 8TH
In January 2014, the adidas Group made it for the tenth consecutive time into the ranking of
the Global 100 Most Sustainable Corporations in the World. For the first time ever, the
company made it into the top 10 of the list - it is ranked 8th.
The Global 100 is an annual project initiated by Corporate Knights, a Toronto-based media
and investment advisory company. The media arm publishes Corporate Knights Magazine,
the world’s largest circulating magazine focused on responsible business. The investment
advisory arm, Corporate Knights Capital, builds indexing solutions and market-beating
portfolios for institutional clients.
Launched in 2005, the Global 100 is announced each year at the World Economic Forum in
Davos.
More information about the Global 100 Most Sustainable Corporations in the World.
For the 14th consecutive time, adidas AG has been selected to join the Dow Jones
Sustainability Indices (DJSI), the world's first global sustainability index family tracking the
performance of the leading sustainability-driven companies worldwide. In the “Textiles,
Apparel & Luxury Goods Industry”, adidas AG was rated as industry leader in sustainability
issues and corporate responsibility for the tenth time.
The indices serve as benchmarks for investors who integrate sustainability considerations into
their portfolios, and provide an effective engagement platform for companies who want to
adopt sustainable best practices.
The annual review of the DJSI family is based on a thorough analysis of corporate economic,
environmental and social performance, assessing issues such as corporate governance, risk
management, branding, climate change mitigation, supply chain standards and labour
practices.
The index family is based on relevant key performance indicators (KPIs) provided by the
index partner Sustainalytics, a leading global provider of ESG research and analysis.
FTSE Group confirms that adidas AG has been independently assessed according to the
FTSE4Good criteria, and has satisfied the requirements to become a constituent of the
FTSE4Good Index Series. Created by the global index company FTSE Group, FTSE4Good is
an equity index series that is designed to facilitate investment in companies that meet globally
recognized corporate responsibility standards. Companies in the FTSE4Good Index Series
have met stringent environmental, social and governance criteria, and are positioned to
capitalize on the benefits of responsible business practice.
On a voluntary basis, CDP requests information on CO2 emissions, reduction targets, risks
and opportunities of climate change from the world’s largest companies on behalf of 722
institutional investor signatories. The information provided is evaluated and published by
CDP to increase transparency around climate-related investment risk and commercial
opportunity, and to drive investments towards a low-carbon economy.
Since December 2009, adidas AG has been included in the ECPI® Indices.
ECPI is dedicated to environmental, social and governance (ESG) research and index
development, calculation and publication. ECPI offers a wide range of ESG indices built
using its proprietary ESG
Rating Methodology (positive screening) and controversial sector exclusion
(negative screening).
The project, which was supported by the Federal Environment Ministry and the Federal
Environment Agency, assessed the social and environmental activities of the retail business
in a comprehensive and cross-sectorial way. The survey (developed by Öko-Institut e.V.)
included industry-specific questions related to the sustainable engagement of companies
along their supply chain, from the production of raw materials to transport and waste
disposal.
the excellent rating of the adidas Group related to labour, health, safety and environmental
conditions in the manufacturing process is the result of an in-depth evaluation by ICRT and
the independent monitoring organization ENGAGED which reveals the consistent
performance of the adidas Group and its suppliers.
2008 – RE-ACCREDITATION OF THE ADIDAS GROUP'S MONITORING
PROGRAMME BY THE FAIR LABOR ASSOCIATION
In 1999, the adidas Group joined the Fair Labor Association (FLA), a non-profit multi-
stakeholder coalition of private corporations, non-governmental organizations and
universities. As a member, the adidas Group is subject to external monitoring by independent
monitors, participation in the FLA third-party complaint system and public reporting.
In 2005, their monitoring programme was among the first to receive FLA accreditation. The
accreditation signifies that they are in substantial compliance with FLA requirements to
implement a rigorous workplace code of conduct in factories making their products. Re-
accredited in October 2008, the Group’s next accreditation is planned for 2013.
B.A.U.M. was founded in 1984 by a group of German entrepreneurs who wanted to support
each other in implementing environmenta l management within their companies. Since then,
more than 500 companies as well as non-profit organizations, institutions and individuals
have become members of B.A.U.M. Today B.A.U.M. is the European business community's
largest environmental initiative.
STIFTUNG WARENTEST has been assessing the social and environmental performance of
companies in product manufacturing since 2004. During the evaluation process they provided
detailed CSR information about the Group’s social and environmental programs and
initiatives, the products and the supplier sites. Part of the rating approach was the external
validation and verification of information they submitted. Verification audits were conducted
at the two supplier sites in Thailand and Pakistan, following a verification visit to their
Headquarters in Herzogenaurach, Germany.
Also in 2006, they ranked second in a list of the 100 most attractive employers for business
students according to “The European Student Barometer”, a survey of university students
across 14 European countries.
The World Wide Fund for Nature Germany (WWF) and German business magazine Capital
named adidas Group’s CEO Herbert Hainer "Ökomanager des Jahres" (Environmental
Manager of the Year). The jury valued the company’s efforts in improving the ecological and
social conditions in the factories producing its products.
Rivalries:
Adidas largest rival is sporting apparel giant Nike, which controls over 33% of the
Worldwide market for athletic shoes, a large but surmountable lead against adidas.
In addition,
6 other much smaller rivals in the United States and Europe include Puma, Asics, and New
Balance. In China, adidas faces competition from Li Ning, China’s biggest athletic shoe
Manufacturer. All these companies hope to eke out a piece of the market from adidas but
with
a more focused strategy adidas can easily counter its rivals, large and small.
Substitutes:
Substitutes for adidas products come from rival manufacturers such as Nike, Puma, Asics,
And New Balance. The price differential between manufacturers is not big and consumers
can
Easily change from one product to another. As athletic footwear is many times a premium
Product, consumers are willing to spend more money with the belief that they can get a
higher
Quality and more durable shoe capable of handling different playing conditions. So,
consumers
Are looking to buy quality and value. In addition to large rivals, substitutes for adidas’
products
Especially in the apparel market come from smaller and more localized companies around
the
world. Almost 75% of the global athletic apparel market and 18% of the global footwear
market
belongs to local apparel manufacturers such as China’s Li Ning.
New Entrants:
Typical entry barriers for new companies in the sporting apparel and footwear industry
Are high due to the large economies of scale needed for manufacturing, distribution,
research and development, and other operations. Entering the apparel and footwear
business requires initial capital investments in order to acquire land, build factories, and
develop new product. Furthermore, developing and selling highly innovative products
requires large marketing and advertising costs that make the barriers to entry even steeper.
In addition, as consumers are looking to purchase premium products, manufacturers must
carry strong reputations that take several years to develop and in the meantime, consumers
will tend towards manufacturers with already strong brand names.
Customers carry large bargaining power as they can always threaten to buy rival
Products. Switching costs are typically very low and many due switch to a rival’s products if
the rival offered trendier or hotter products or if the rival’s reputation for footwear in a
specific sport (e.g. soccer) is very high. Large selection among several brand names, in
addition to large price variations, allow consumers to choose shoes suited to their
preferences in design, comfortability, and price. The lack of complements also increases
buyer bargaining power as the buyer is never locked to a specific product.
The suppliers’ bargaining power is high as well, since adidas makes contracts with
Famous athletes or teams (such as Chelsea FC, Liverpool FC, NY Giants, LA Lakers, David
Beckham), to promote and advertise its products. But famous teams and athletes most of
the times dictate the terms of the contract thus increasing the suppliers bargaining power.
Moreover there is great competition observed to sign contracts with famous sporting events
(Olympic Games, NBA, FIFA World cup and Eurocup), which is a fact that makes supplier’s
bargaining power bigger. If they can choose among several competitors they can easily
threaten to pick the one with the best offer.
Complements:
Currently, adidas partners with Samsung in producing a shoe plus a phone scheme that
Uses wireless biometrics to display information on an adidas-branded Samsung phone. In
Addition, packaging shoes with other products, such as apparel, eyewear, basketballs or golf
Clubs creates another complement for adidas. Moreover, selling different products which
are signed by its contracted athletes or teams create another complement. Technology used
in apparel such as Climacool) also creates a complement, making consumers buy
adidas Climacool products.
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company. It identifies the internal and external
factors that are favorable or unfavorable for business.
SWOT ANALYSIS OF ADIDAS
Strengths Weakness
• Good financial position • High cost structure
• Effective Marketing Strategy • Over pricing
• Market Leadership • Low quality products/services
• Strong online presence • Limited product line
• Strong brand Online customer service not helpful
• Strong international operations
• Strong distribution chain
• Competitive pricing
Opportunities Threats
cut throat competition from rival apparel
• Change in consumer lifestyles brand
• Available technological innovations demand forecast for hot market item
• Entering new markets • Competition from foreign markets
• Expand customer base • Competitor's actions
• Expand product/service lines • Change in consumer lifestyles\patterns
• Market Diversification • Growing power of customers to set the price
• Merger or ACQUISITION • Growing power of suppliers to set the price
• Financial slowdown
• Increase in taxation
• New competitors entering the market
• Price war between competitors
RECOMMENDATIONS:
SUGGESTED STRATEGIES:
• Market Development
• Market Penetration
• Product Development
REFERENCES
Adidas official site (www.adidas.com.en)
Wikipedia (www.wikipedia.com)
Slideshare (www.slideshare.com)