MISSION

The Adidas mission statement is "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." 

1. Promoting an Active Lifestyle: Adidas places high esteem on an active lifestyle.

It encourages people to get into sports by offering a multitude of superior quality
products that are suitable for a very diverse market.
2. Improving Sports: There is a very sports-focused mindset in the Adidas Group. While
Adidas does cater to the fitness needs of all customers, much of its efforts are directed on the
athletically inclined market, particularly the youth. 

3. Exceeding Expectations: The research and development team of Adidas

works tirelessly to constantly improve its products, creating innovative
features never before seen in the market. One of the company's goals is
always to surpass the expectations of the customers and the competitors.

VISION
"To be the design leaders with a focus on getting the best out of the athletes with performance
guaranteed products in the sports market globally."
Excellence in product performance is a priority in the long-term vision of the Adidas Group because
Adidas wants to enable athletes to perform at maximum capacity. But at the same time, Adidas is just
as focused on creating these products in style.

1. Creating the Best Designs

Adidas's vision statement begins by asserting its goal of becoming the design leader in
the sports products industry. Throughout the years, Adidas has maintained an
unblemished reputation of providing only the best products, and this is what the
company hopes to continue in the future.

2. Maximizing Athlete Performance

Despite already having many top athletic products worldwide, Adidas never stops
trying to improve on its products. The goal is to provide constant motivation for
athletes to push beyond their limits and maximize their potential in their chosen sport.

3. Manufacturing Top Quality Products

Adidas products are known to be quite pricey, and the reason for this is because these
products come with unparalleled quality. Every single shoe, shorts, or t-shirt that
come out of the Adidas facilities is fit to wear to even the most grueling international
sports competitions. When you buy Adidas, you can be sure that you are getting top-
quality products.
 1.

Slide 3: Business Strategy

- Explain Adidas' overall business strategy

- Focus on the company's commitment to innovation, sustainability, and consumer-centric approach

- Discuss how Adidas differentiates itself in the market

SLIDE 3:-Certainly! Here's a detailed explanation of how Adidas incorporates sustainability into its
business strategy, along with the company's commitment to reducing its environmental footprint and
promoting social responsibility. It also includes specific sustainability initiatives undertaken by
Adidas, such as using recycled materials or partnering with environmental organizations:

1. Incorporating Sustainability into Business Strategy (10 marks):

Adidas recognizes the importance of sustainability and has integrated it into its business strategy.
Sustainability is a core principle that guides the company's operations, decision-making processes,
and long-term goals. By incorporating sustainability into its strategy, Adidas aims to create a positive
impact on the environment and society while also driving business success.

Adidas has identified sustainability as one of its key strategic pillars, alongside innovation and
consumer focus. The company understands that sustainability is not only an ethical responsibility but
also a business imperative in the face of environmental challenges and changing consumer
preferences. By prioritizing sustainability, Adidas aligns its operations with global sustainability goals
and positions itself as a responsible leader in the industry.

2. Commitment to Reducing Environmental Footprint and Promoting Social Responsibility (10 marks):

Adidas is committed to reducing its environmental footprint and promoting social responsibility
across its value chain. The company understands that its actions have an impact on the environment
and society, and it aims to minimize negative effects while maximizing positive contributions.

In terms of reducing its environmental footprint, Adidas has set ambitious targets. For instance, the
company has committed to achieving carbon neutrality in its own operations by 2025 (1). This
involves reducing greenhouse gas emissions and offsetting remaining emissions through renewable
energy and other sustainability measures.

Adidas also focuses on responsible water management. By 2020, the company reduced water
consumption per employee by 35.7% compared to its 2015 baseline (2). This reduction is achieved
through efficient manufacturing processes and responsible water sourcing.

In terms of social responsibility, Adidas places a strong emphasis on fair labor practices and supply
chain transparency. The company has implemented initiatives to ensure safe and fair working
conditions in its supply chain, including auditing and collaboration with suppliers to address labor
rights issues. Adidas is a member of the Fair Labor Association (FLA) and works closely with other
organizations to promote fair labor practices in the industry (3).
3. Specific Sustainability Initiatives (10 marks):

Adidas has undertaken various sustainability initiatives to address environmental and social
challenges:

a. Use of Recycled Materials: Adidas actively incorporates recycled materials into its products. For
example, in 2020, the company used more than 40% recycled polyester in its products, with a goal to
use only recycled polyester by 2024 (4). This reduces dependence on virgin resources and
contributes to a circular economy.

b. Circular Products: Adidas has introduced circular product concepts as part of its sustainability
efforts. The Future craft Loop shoe is a prime example. It is designed to be fully recyclable, with the
aim of creating a closed-loop system where materials from worn-out shoes are collected and used to
create new products (5).

c. Partnerships and Initiatives: Adidas collaborates with various environmental organizations and
initiatives to drive sustainability. For instance, the company is a founding member of the Better
Cotton Initiative (BCI), which promotes sustainable cotton farming practices (6). Adidas also partners
with Parley for the Oceans to tackle marine plastic pollution by using recycled ocean plastic in its
products (7).

These initiatives demonstrate Adidas' commitment to sustainability and its proactive efforts to
address environmental and social challenges through innovation, partnerships, and responsible
practices.

Slide 4: Competitive Analysis

- Analyze the competitive landscape in the sportswear industry

- Highlight key competitors (Nike, Puma, Under Armour, etc.)

- Identify Adidas' competitive advantages (brand equity, product quality, partnerships, etc.)

SLIDE 4:-Certainly! Here's a detailed analysis of the competitive landscape in the sportswear industry
for Adidas, including key competitors and Adidas' competitive advantages:

1. Analysis of the Competitive Landscape (10 marks):

The sportswear industry is highly competitive, with several major players vying for market share and
consumer loyalty. Adidas operates in this dynamic landscape, competing against brands that have a
global presence and strong market positions. Understanding the competitive landscape is crucial for
Adidas to identify opportunities, differentiate itself, and maintain a competitive edge.

Key competitors in the sportswear industry include Nike, Puma, Under Armour, and other emerging
brands. These competitors have established themselves as leaders in various sportswear categories,
possess extensive distribution networks, and invest heavily in marketing and product innovation.

To analyze the competitive landscape, factors such as market share, revenue, brand perception,
product portfolio, and geographic reach are essential. Additionally, consumer preferences, changing
trends, and technological advancements play a significant role in shaping competition within the
industry.
2. Key Competitors (10 marks):

Adidas faces strong competition from key players in the sportswear industry, including:

a. Nike: Nike is one of the largest and most recognizable sportswear brands globally. It holds a
significant market share, with a strong focus on innovation, endorsement partnerships with top
athletes, and extensive marketing campaigns.

b. Puma: Puma is known for its sportswear and athletic footwear. The brand emphasizes lifestyle and
fashion elements in its products, targeting a diverse consumer base. Puma's collaborations with
celebrities and influential designers have helped elevate its brand image.

c. Under Armour: Under Armour is renowned for its performance-driven sportswear and innovative
technologies. The brand caters to athletes and fitness enthusiasts, with a focus on high-performance
apparel, footwear, and connected fitness products.

These competitors pose challenges to Adidas in terms of market share, brand recognition, and
product offerings. However, Adidas has its own unique strengths and competitive advantages.

3. Adidas' Competitive Advantages (10 marks):

Adidas possesses several competitive advantages that contribute to its success in the sportswear
industry:

a. Strong Brand Equity: Adidas has a well-established brand with global recognition. The brand's
heritage, authenticity, and association with sports and athletes contribute to its strong brand equity,
fostering consumer trust and loyalty.

b. Product Quality and Innovation: Adidas is known for producing high-quality sportswear, footwear,
and accessories. The company continuously invests in research and development to innovate and
introduce new technologies and materials that enhance performance and comfort for athletes and
consumers.

c. Partnerships and Endorsements: Adidas has formed strategic partnerships with renowned athletes,
sports teams, and organizations worldwide. Collaborating with influential figures and institutions
helps strengthen Adidas' brand image, expand its reach, and create authentic connections with
consumers.

d. Diversified Product Portfolio: Adidas offers a diverse range of products across various sports
categories, catering to different consumer preferences and needs. This wide product portfolio
enables Adidas to reach a broader consumer base and maintain relevance in multiple market
segments.

e. Sustainable Practices: Adidas' commitment to sustainability is a competitive advantage, as

consumers increasingly prioritize environmentally responsible brands. The company's initiatives to
reduce its environmental footprint, use recycled materials, and promote social responsibility
resonate with eco-conscious consumers.

These competitive advantages enable Adidas to differentiate itself in the market, attract consumers,
and maintain a strong position against its competitors.
Slide 5: Market Expansion Strategy

- Discuss Adidas' strategy for expanding into new markets

- Highlight key regions or countries where Adidas is focusing its growth efforts

- Explain the rationale behind the market selection

SLIDE 5:-Certainly! Here's a detailed explanation of Adidas' market expansion strategy, including its
approach to entering new markets, key regions or countries of focus, and the rationale behind
market selection:

1. Adidas' Strategy for Expanding into New Markets (10 marks):

Adidas employs a multi-faceted strategy for expanding into new markets. The company seeks to
capitalize on emerging opportunities, increase its global presence, and tap into underserved
consumer segments. Adidas' market expansion strategy typically involves a combination of organic
growth initiatives, partnerships, and strategic acquisitions.

Organic Growth: Adidas focuses on organic growth by leveraging its existing brand equity,
distribution network, and product portfolio. This includes establishing new retail outlets, expanding
e-commerce capabilities, and investing in marketing and brand building activities to raise awareness
and drive demand in target markets.

Partnerships and Collaborations: Adidas forms strategic partnerships and collaborations to accelerate
market entry and tap into local expertise. These partnerships may involve local retailers, distributors,
or influential figures who can help increase brand visibility and drive sales in new markets.

Strategic Acquisitions: Adidas may also pursue strategic acquisitions to enter new markets or
strengthen its position in existing markets. Acquiring local brands or businesses allows Adidas to gain
a foothold in specific regions, access established distribution networks, and leverage the acquired
brand's reputation and customer base.

2. Key Regions or Countries of Focus (10 marks):

Adidas has identified several key regions and countries where it focuses its growth efforts:

a. Asia-Pacific: Adidas recognizes the immense growth potential in the Asia-Pacific region,
particularly in countries like China and India. China, in particular, presents a significant market
opportunity due to its large population, increasing consumer purchasing power, and growing interest
in fitness and sports. India, with its young and aspirational population, is also a target market for
Adidas' expansion efforts.

b. North America: Despite its already established presence, North America remains an important
region for Adidas' growth. The United States, in particular, offers significant market potential, driven
by a robust sports culture, a large consumer base, and a strong demand for sportswear and
athleisure products.
c. Europe: Europe, where Adidas originated, continues to be a key market for the brand. Adidas
maintains a strong presence in European countries and continues to invest in expanding its market
share by targeting specific segments, leveraging its brand heritage, and introducing innovative
products to meet evolving consumer preferences.

3. Rationale behind Market Selection (10 marks):

Adidas selects markets for expansion based on several factors:

Market Size and Growth Potential: Adidas prioritizes markets with large consumer populations and
strong growth potential. This ensures that the company can capture a significant share of the market
and sustain long-term growth.

Consumer Demand and Trends: Adidas considers consumer demand for sportswear, athletic
footwear, and related products. The company identifies markets where there is a growing interest in
fitness, sports participation, and athleisure trends, as these factors drive demand for Adidas'
products.

Economic Factors: Adidas assesses the economic conditions and disposable income levels of target
markets. It focuses on regions or countries with stable economies, increasing middle-class
populations, and rising disposable incomes, as these factors contribute to consumer purchasing
power.

Competitive Landscape: Adidas evaluates the competitive landscape in potential markets. It

considers the presence of key competitors, market saturation, and the potential for differentiation
and brand positioning. Adidas seeks opportunities where it can effectively differentiate itself and gain
a competitive advantage.

Strategic Fit: Adidas aligns its market selection with its overall business strategy and growth
objectives. The company evaluates how entering a particular market complements its existing
product portfolio, brand image, and target consumer segments.

Slide 6: Product Development Strategy

- Outline Adidas' approach to product development and innovation

- Showcase recent product launches and innovations

- Highlight the company's focus on technology integration and performance enhancement

Slide 6:- Certainly! Here's the content for Slide 6 focusing on Adidas' product development strategy,
recent product launches and innovations, and the company's emphasis on technology integration
and performance enhancement:

Slide 6: Product Development Strategy

1. Adidas' Approach to Product Development and Innovation (10 marks):

Adidas adopts a proactive and customer-centric approach to product development and innovation.
The company recognizes the importance of continuously enhancing its product offerings to meet
evolving consumer needs, stay ahead of competitors, and drive market growth.

Adidas' product development strategy revolves around the following key principles:

a. Consumer Insights: Adidas conducts extensive market research and consumer analysis to
understand trends, preferences, and performance requirements. This enables the company to
identify opportunities and design products that resonate with target consumers.

b. Design and Aesthetics: Adidas places a strong emphasis on design and aesthetics, recognizing that
style and visual appeal play a crucial role in attracting consumers. The company collaborates with
renowned designers and artists to create unique and visually compelling products.

c. Performance and Innovation: Adidas strives to push the boundaries of performance and innovation
in sportswear. The company invests in research and development to develop cutting-edge
technologies, materials, and manufacturing processes that enhance product performance, durability,
and comfort.

2. Recent Product Launches and Innovations (10 marks):

Adidas has introduced several notable product launches and innovations in recent years, showcasing
its commitment to staying at the forefront of the industry:

a. Futurecraft 4D: Adidas introduced Futurecraft 4D, a groundbreaking shoe featuring a 3D-printed
midsole. This innovation enables precise customization, optimal cushioning, and improved energy
return for athletes (1).

b. Ultraboost: Adidas' Ultraboost line has gained significant popularity, combining comfort, style, and
performance. The Ultraboost shoes feature the innovative Boost cushioning technology, which
provides responsive and energy-returning properties.

c. Parley Collaboration: Adidas has collaborated with Parley for the Oceans, an organization
dedicated to reducing ocean pollution. This collaboration has resulted in the creation of products
using recycled ocean plastic, emphasizing sustainability and environmental consciousness (2).

3. Focus on Technology Integration and Performance Enhancement (10 marks):

Adidas integrates technology into its product development process to enhance performance,
comfort, and user experience. The company leverages advanced technologies to stay ahead of the
competition and provide athletes and consumers with cutting-edge products:

a. Boost Technology: Adidas' Boost technology, based on thermoplastic polyurethane (TPU) foam,
offers superior cushioning and energy return. It provides enhanced responsiveness, durability, and
comfort for athletes across various sports disciplines.

b. Primeknit: Adidas incorporates Primeknit technology, a seamless and lightweight fabric, into its
footwear and apparel. Primeknit offers a precise and adaptive fit, breathability, and freedom of
movement, enhancing overall performance and comfort.
c. Digital Integration: Adidas integrates digital technology into its products to enhance the user
experience. For example, the brand's smart running shoes feature sensors and connectivity
capabilities to track performance metrics, provide personalized coaching, and offer interactive
experiences through smartphone applications.

Facts and Data:

- Adidas Futurecraft 4D shoes received the Innovation of the Year award from Footwear News in
2017 (source: Footwear News)

- Boost technology has been widely recognized for its performance benefits and has been used in
various Adidas shoe models, including Ultraboost, NMD, and Solarboost.

Slide 7: Branding and Marketing Strategy

- Discuss Adidas' branding and marketing strategies

- Highlight key campaigns or initiatives that have helped strengthen the brand image

- Explain how Adidas leverages digital marketing and social media platforms

Slide 7:- Certainly! Here's a more detailed explanation for each point on Slide 7, focusing on Adidas'
branding and marketing strategies, key campaigns and initiatives, and the company's leverage of
digital marketing and social media platforms:

Slide 7: Branding and Marketing Strategy

1. Adidas' Branding and Marketing Strategies (10 marks):

Adidas employs a comprehensive branding and marketing strategy to build a strong brand image,
connect with consumers, and drive sales. The company's strategies can be broken down as follows:

a. Brand Identity: Adidas positions itself as a premium sportswear brand that combines performance,
style, and innovation. The company emphasizes its heritage, authenticity, and commitment to
athletes and sports enthusiasts. By associating itself with top athletes and sporting events, Adidas
showcases its expertise and dedication to creating products that enhance athletic performance.

b. Targeted Segmentation: Adidas identifies specific consumer segments based on demographics,

psychographics, and sports preferences. The company tailors its messaging and product offerings to
appeal to different consumer groups. For example, Adidas caters to professional athletes with high-
performance gear, while also targeting fashion-conscious individuals with stylish and trendy
athleisure products.

c. Emotional Connection: Adidas aims to create an emotional connection with its consumers. The
company tells inspiring stories of athletes overcoming challenges and defying limitations to showcase
the power of sports. By associating its brand with emotions like determination, teamwork, and
success, Adidas resonates with its target audience on a deeper level.

2. Key Campaigns and Initiatives (10 marks):

Adidas has launched several impactful campaigns and initiatives that have strengthened its brand
image and captured consumer attention. Some notable examples include:

a. "Impossible is Nothing": This global campaign featured inspiring stories of athletes from diverse
backgrounds who overcame adversity to achieve greatness. By highlighting the human spirit and the
power of determination, the campaign aimed to inspire individuals to pursue their dreams and push
beyond their limits. The campaign showcased the values that Adidas stands for, reinforcing its brand
positioning.

b. Adidas Originals: The Adidas Originals line targets the fashion-forward consumer segment. This
sub-brand celebrates the brand's iconic designs, heritage, and streetwear culture. Collaborations
with artists, designers, and influencers have played a significant role in elevating the Adidas Originals
brand image. These collaborations help create hype and excitement around limited-edition releases,
driving desirability and engagement among consumers.

c. "Run for the Oceans": Adidas partnered with Parley for the Oceans, an organization dedicated to
reducing ocean plastic pollution. The campaign involved organizing running events in major cities
worldwide, encouraging consumers to participate and raise awareness. Additionally, Adidas created
limited-edition products made from recycled ocean plastic, symbolizing its commitment to
sustainability. A portion of the proceeds from these products was donated to support ocean
conservation efforts, showcasing Adidas' social and environmental responsibility.

3. Digital Marketing and Social Media (10 marks):

Adidas recognizes the importance of digital marketing and social media platforms in engaging with
consumers and amplifying its brand message. The company leverages these channels in the following
ways:

a. Reach a Global Audience: Adidas utilizes digital marketing to reach consumers worldwide, breaking
geographical barriers and engaging with a diverse audience. Social media platforms like Instagram,
Facebook, and YouTube serve as key channels for sharing brand stories, product launches, and
engaging content. By leveraging these platforms, Adidas can communicate directly with its
consumers, build relationships, and create a sense of community.

b. Create Interactive Experiences: Adidas leverages technology to create interactive experiences for
consumers. The company utilizes augmented reality (AR) and virtual reality (VR) applications to allow
consumers to virtually try on products, explore new collections, and participate in immersive brand
experiences. These interactive experiences enhance consumer engagement, provide a unique and
personalized brand experience, and generate excitement and interest.

c. Engage with Influencers: Adidas collaborates with influencers, athletes, and celebrities to amplify
its brand reach and connect with specific target audiences. Influencers are strategically selected
based on their alignment with the brand's values and their ability to resonate with the desired
consumer segments. Collaborations with influential individuals help showcase the brand's products,
generate buzz, and foster authentic connections with consumers.

Facts and Data:

- Adidas' digital sales accounted for €4 billion, representing approximately 16% of its total sales in
2020 (source: Adidas Annual Report 2020). This highlights the significant contribution of digital
marketing channels to the company's overall revenue.

- Adidas has a strong social media presence, with millions of followers on platforms like Instagram,
Facebook, and YouTube. These platforms allow Adidas to engage with a vast audience, share content,
receive feedback, and build brand loyalty.

These branding and marketing strategies, along with effective digital marketing and social media
utilization, have helped Adidas create a strong brand image, connect with consumers on an
emotional level, and drive engagement and sales. Through targeted campaigns, collaborations, and
interactive experiences, Adidas continues to reinforce its position as a leading sportswear
brand in the market.

Slide 8: Sustainability Strategy

- Present Adidas' sustainability initiatives and goals

- Discuss the company's commitment to environmental stewardship and social responsibility

- Highlight specific programs or partnerships focused on sustainability

SLIDE 8- Slide 8: Sustainability Strategy of Adidas

1. Adidas' Sustainability Initiatives and Goals (10 marks):

Adidas recognizes the importance of sustainability and has implemented various initiatives to
minimize its environmental impact and promote social responsibility. The company's sustainability
strategy includes the following key aspects:

a. Environmental Footprint: Adidas aims to reduce its carbon emissions, water usage, and waste
generation across its value chain. The company has set ambitious targets, such as achieving carbon
neutrality by 2050 and reducing water consumption in its own operations.

b. Supply Chain Transparency: Adidas strives for transparency and sustainability throughout its
supply chain. The company collaborates with suppliers to ensure ethical and responsible practices,
including fair labor conditions, safe workplaces, and the prohibition of forced labor.

c. Circular Economy Approach: Adidas is committed to transitioning to a circular economy, where

products are designed, produced, used, and recycled in a way that minimizes waste and maximizes
resource efficiency. The company focuses on product innovation, materials recycling, and take-back
programs.
2. Commitment to Environmental Stewardship and Social Responsibility (10 marks):

Adidas demonstrates a strong commitment to environmental stewardship and social responsibility by

integrating sustainability into its business practices. The company understands its role in addressing
global challenges and takes proactive measures to make a positive impact. Key aspects of Adidas'
commitment include:

a. Sustainable Materials: Adidas actively seeks sustainable materials for its products, including
recycled polyester, organic cotton, and innovative eco-friendly alternatives. The company is
dedicated to increasing the use of sustainable materials in its product portfolio.

b. Ethical Labor Practices: Adidas upholds ethical labor practices and human rights throughout its
supply chain. The company collaborates with suppliers to ensure fair wages, safe working conditions,
and the empowerment of workers through training and capacity-building initiatives.

c. Diversity and Inclusion: Adidas promotes diversity and inclusion within its workforce and
communities. The company strives to create an inclusive environment that values and respects
individuals from diverse backgrounds, cultures, and perspectives.

3. Programs and Partnerships focused on Sustainability (10 marks):

Adidas has established several programs and partnerships to drive sustainability efforts and address
environmental and social challenges. Some notable examples include:

a. "adidas x Parley": Adidas collaborates with Parley for the Oceans, a nonprofit organization
dedicated to combating marine plastic pollution. Through this partnership, Adidas creates products
using recycled ocean plastic waste, raising awareness about the importance of preserving the
oceans.

b. "Better Cotton Initiative (BCI)": Adidas is a member of the Better Cotton Initiative, a global
organization focused on making cotton production more sustainable. The company supports farmers
in adopting responsible farming practices and sourcing cotton that meets the BCI's sustainability
standards.

c. "adidas by Stella McCartney": Adidas has a long-standing collaboration with renowned designer
Stella McCartney, known for her commitment to sustainability. The partnership combines
performance sportswear with sustainable materials, promoting a more sustainable approach to
fashion.

Facts and Data:

- Adidas aims to produce 60% of its products using sustainable materials by 2023 (source: Adidas
Sustainability Report 2020).

- The "adidas x Parley" collaboration has prevented over 2,900 tons of plastic waste from entering
the oceans (source: Adidas Sustainability Report 2020).

Through its sustainability initiatives, commitment to environmental stewardship, and various

programs and partnerships, Adidas is actively contributing to a more sustainable future and aligning
its business practices with responsible and ethical principles.
Slide 9: Supply Chain Management

- Explain how Adidas manages its global supply chain

- Discuss efforts to ensure transparency, ethical sourcing, and responsible manufacturing

- Highlight initiatives to reduce environmental impact throughout the supply chain

SLIDE 9:- Certainly! Here's a more detailed explanation for each point on Slide 9, focusing on Adidas'
management of its global supply chain, efforts to ensure transparency, ethical sourcing, and
responsible manufacturing, as well as initiatives to reduce environmental impact throughout the
supply chain:

1. Management of Global Supply Chain (50 marks):

Adidas manages a global supply chain that spans multiple countries and involves various
stakeholders, including suppliers, manufacturers, distributors, and retailers. The company focuses on
several key aspects to effectively manage its supply chain:

a. Supplier Relationships: Adidas recognizes the importance of strong relationships with its suppliers.
The company actively engages in open communication and collaboration to ensure a shared
understanding of expectations and requirements. Adidas works closely with its suppliers to establish
long-term partnerships based on trust and mutual benefit. Regular supplier performance
assessments and audits are conducted to monitor compliance with Adidas' standards and codes of
conduct.

b. Production Planning and Logistics: Adidas employs sophisticated production planning systems and
logistics strategies to optimize efficiency and minimize lead times. The company utilizes advanced
technology and data analytics to forecast demand, plan production schedules, and optimize
inventory levels. By streamlining operations and leveraging economies of scale, Adidas strives to
meet customer demands effectively while minimizing waste and costs.

c. Risk Management: Adidas acknowledges the potential risks that can impact its supply chain
operations. These risks include disruptions in raw material availability, geopolitical challenges, natural
disasters, and labor issues. The company implements robust risk management practices to identify,
assess, and mitigate potential risks. This involves developing contingency plans, diversifying sourcing
options, and establishing business continuity strategies to maintain the uninterrupted flow of
products and services.

2. Transparency, Ethical Sourcing, and Responsible Manufacturing (50 marks):

Adidas is committed to ensuring transparency, ethical sourcing, and responsible manufacturing

practices throughout its supply chain. The company takes several measures to uphold these
principles:

a. Supply Chain Transparency: Adidas places a strong emphasis on supply chain transparency,
recognizing the importance of providing consumers with visibility into its operations. The company
actively discloses information about its supply chain, including the locations of suppliers, labor
conditions, and environmental impact. This transparency fosters accountability and allows
stakeholders to make informed choices. Adidas engages in regular audits and assessments to monitor
supplier compliance and ensure adherence to its social and environmental standards.

b. Ethical Sourcing: Adidas has established a robust set of social and environmental standards that
suppliers must adhere to. These standards cover areas such as fair labor practices, health and safety,
non-discrimination, and environmental sustainability. The company works closely with its suppliers to
promote awareness and understanding of these standards. Collaboration and capacity-building
initiatives are conducted to support suppliers in implementing responsible practices. Adidas also
conducts regular audits to assess supplier compliance and identify areas for improvement.

c. Responsible Manufacturing: Adidas is committed to responsible manufacturing practices. The

company strives to create a positive and safe working environment for all employees involved in the
manufacturing process. It upholds fair wages, safe working conditions, and the prohibition of forced
labor. Adidas implements worker empowerment programs, provides training on labor rights and
responsibilities, and engages in capacity-building initiatives to promote sustainable and ethical
manufacturing practices. By fostering a culture of respect and inclusivity, Adidas aims to ensure the
well-being and rights of workers throughout its supply chain.

3. Initiatives to Reduce Environmental Impact (50 marks):

Adidas recognizes the significant environmental impact associated with its supply chain and is
dedicated to minimizing it. The company implements various initiatives to reduce carbon emissions,
water usage, and waste generation:

a. Sustainable Materials Sourcing: Adidas actively seeks sustainable materials for its products,
including recycled polyester, organic cotton, and innovative eco-friendly alternatives. The company
aims to increase the use of sustainable materials in its product portfolio, reducing the reliance on
virgin resources and minimizing environmental impact. By prioritizing sustainable material sourcing,
Adidas contributes to the preservation of ecosystems, reduction of water consumption, and
mitigation of carbon emissions associated with raw material extraction and production.

b. Energy Efficiency and Renewable Energy: Adidas invests in energy-efficient technologies and
renewable energy sources to reduce its greenhouse gas emissions. The company implements energy
management systems and collaborates with suppliers to optimize energy usage throughout the
supply chain. By improving energy efficiency and transitioning to renewable sources, Adidas reduces
its carbon footprint and contributes to global efforts to combat climate change.

c. Waste Reduction and Recycling: Adidas focuses on waste reduction and recycling initiatives across
its supply chain. The company implements measures to minimize waste generation during
manufacturing processes, such as lean manufacturing techniques and process optimization.
Additionally, Adidas encourages the recycling and repurposing of materials through various
programs. By promoting circular economy practices, such as product take-back schemes and
innovative recycling solutions, Adidas aims to reduce waste and extend the lifecycle of its products.

Facts and Data:

- Adidas aims to achieve 100% sustainable cotton sourcing by 2024 (source: Adidas Sustainability
Report 2020).

- The company reduced its greenhouse gas emissions per product by 50% from 2015 to 2020 (source:
Adidas Sustainability Report 2020).

Through its comprehensive supply chain management practices, emphasis on transparency, ethical
sourcing, responsible manufacturing, and initiatives to reduce environmental impact, Adidas
demonstrates its commitment to sustainable and responsible business operations. By integrating
sustainability into its supply chain, Adidas aims to drive positive change, reduce its environmental
footprint, and contribute to a more sustainable future.

Slide 10: Financial Performance

- Provide an overview of Adidas' financial performance in recent years

- Present key financial indicators (revenue, profitability, market share, etc.)

- Highlight any significant achievements or challenges

SLIDE 10- Slide 10: Financial Performance of Adidas

1. Overview of Adidas' Financial Performance in Recent Years (50 marks):

Adidas has demonstrated consistent and strong financial performance in recent years, showcasing its
ability to effectively navigate the sportswear market and deliver value to shareholders. Here is a
more detailed overview of the company's financial performance:

- Revenue Growth: Adidas has experienced steady revenue growth over the years, driven by its
strong brand presence, innovative product offerings, and global market reach. From 2016 to 2019,
Adidas achieved compound annual revenue growth of approximately 11%, reaching a peak of €23.6
billion in 2019. However, in 2020, the company faced the unprecedented challenges posed by the
COVID-19 pandemic, resulting in a slight decline in revenue to €19.8 billion. Despite this setback,
Adidas has consistently demonstrated its ability to generate substantial revenue.

- Profitability: Adidas has maintained a solid profitability profile, reflecting its effective cost
management and pricing strategies. The company's gross profit margin has consistently ranged from
49% to 51% in recent years, indicating its ability to generate profits from its product sales after
accounting for the cost of goods sold. The operating profit margin has averaged around 8% to 10%,
demonstrating Adidas' ability to efficiently manage operating expenses and generate profits from its
core business operations.

- Market Share: Adidas holds a significant market share in the global sportswear industry and
competes with major players such as Nike and Puma. While market share data may vary by region
and product segment, Adidas has consistently ranked among the top sportswear brands globally. In
the athletic footwear segment, Adidas had a global market share of approximately 9.5% in 2020,
illustrating its strong market presence.

2. Key Financial Indicators (50 marks):

- Revenue: Adidas' revenue is a key financial indicator that measures the company's sales
performance. In recent years, Adidas has consistently reported annual revenues in the range of €19
billion to €23 billion. The revenue can be further analyzed by geographical regions, product
categories, or distribution channels to provide a comprehensive understanding of the company's
revenue streams and growth drivers.

- Profitability Ratios: Profitability ratios provide insights into Adidas' ability to generate profits from
its operations. The gross profit margin reflects the company's ability to effectively manage the cost of
goods sold and set appropriate pricing strategies. Adidas' consistent gross profit margin of 49% to
51% indicates a strong control over production costs and pricing decisions. The operating profit
margin measures the company's ability to generate profits after accounting for operating expenses.
Adidas' operating profit margin ranging from 8% to 10% demonstrates its efficient management of
operating costs.

- Market Share: While market share data may vary by region and product segment, Adidas holds a
significant market share in the sportswear industry. Its market share can be analyzed based on
various parameters such as geographical regions, product categories, or target consumer segments.
By comparing its market share with competitors like Nike and Puma, Adidas can assess its
competitive position and identify opportunities for growth.

3. Significant Achievements and Challenges (50 marks):

- Achievement: Strong Brand Equity: One of Adidas' significant achievements is its strong brand
equity. The Adidas brand is globally recognized and associated with quality, innovation, and
performance. This strong brand equity has enabled Adidas to attract a loyal customer base and
maintain a competitive advantage in the sportswear industry. It is supported by successful brand
partnerships, endorsements with top athletes, and effective marketing campaigns.

- Achievement: E-commerce Growth: Adidas has experienced substantial growth in its e-commerce
sales, driven by its strategic investments in online platforms and digital capabilities. The company has
enhanced its online presence, improved the customer shopping experience, and expanded its global
reach through e-commerce channels. This growth in e-commerce has allowed Adidas to tap into the
growing online retail market and capture a broader customer base.

- Challenge: Impact of COVID-19: The COVID-19 pandemic presented significant challenges to Adidas,
disrupting its operations and impacting consumer demand. Temporary store closures, supply chain
disruptions, and reduced consumer spending affected the company's revenue and profitability in
2020. However, Adidas swiftly adapted its strategies by focusing on digital channels, accelerating its
e-commerce initiatives, and implementing cost-saving measures to mitigate the impact of the
pandemic.

By analyzing these financial indicators and highlighting achievements and challenges, Adidas can
assess its financial health, identify areas of strength, and determine areas for improvement. This
information helps stakeholders, investors, and decision-makers gain insights into Adidas' financial
performance and make informed decisions regarding the company's future strategies
and investments.
CONCLUSION:

Conclusion:

1. Summary of Key Points (30 marks):

Throughout the presentation, we have explored several key aspects of Adidas' strategy management
and their impact on the company's performance. Let's delve into a more detailed summary of these
points:

- Adidas' commitment to innovation and product development has been a cornerstone of its strategy.
The company invests heavily in research and development to introduce cutting-edge products,
technologies, and materials. For example, Adidas has launched innovative footwear technologies like
Boost and Future craft, which have gained popularity among athletes and consumers.

- Sustainability is a central pillar of Adidas' business strategy. The company is dedicated to reducing
its environmental footprint and promoting social responsibility. Adidas has set ambitious
sustainability goals, such as using only recycled polyester in its products by 2024 and achieving
carbon neutrality in its operations by 2050. It has also partnered with organizations like Parley for the
Oceans to create products made from ocean plastic waste.

- In the competitive landscape of the sportswear industry, Adidas faces key competitors such as Nike,
Puma, and Under Armour. However, Adidas has managed to maintain a strong market position
through its competitive advantages. These include its iconic brand equity, recognized worldwide for
its quality and performance, and its focus on product innovation and design. Collaborations with
high-profile celebrities and athletes, such as Kanye West and Lionel Messi, have further boosted
Adidas' brand appeal.

- Adidas has pursued a market expansion strategy, targeting key regions and countries for growth.
The company has focused on markets with high consumer demand for sportswear, such as North
America, Europe, and China. Additionally, Adidas has successfully tapped into emerging markets like
India and Brazil, where it has seen significant growth potential.

- The branding and marketing strategies of Adidas have played a vital role in strengthening its brand
image and connecting with consumers. The company has launched impactful marketing campaigns,
such as "Impossible is Nothing" and "Here to Create," that resonate with its target audience. Adidas
has embraced digital marketing and leveraged social media platforms to engage with consumers,
collaborate with influencers, and create personalized experiences.

2. Effectiveness of Adidas' Strategy Management (30 marks):

Adidas' strategy management has proven highly effective in driving the company's success. The
emphasis on innovation has allowed Adidas to stay ahead of market trends and consumer
preferences. By continuously introducing innovative products and technologies, the company has
maintained its competitive edge and captured market share.

The integration of sustainability into Adidas' business strategy not only aligns with societal and
environmental concerns but also enhances its reputation and appeal among environmentally
conscious consumers. Adidas' sustainability initiatives have received recognition and accolades,
further solidifying its position as a responsible corporate citizen.
The company's competitive advantages, such as its brand equity and product quality, have enabled
Adidas to differentiate itself in a crowded marketplace. Its strategic partnerships, such as
collaborations with designers and athletes, have expanded its reach and relevance, attracting diverse
consumer segments.

Adidas' successful market expansion strategy has allowed it to penetrate new markets and capitalize
on growth opportunities. By targeting regions with high consumer demand and adapting to local
preferences, Adidas has effectively expanded its global footprint and diversified its revenue streams.

The branding and marketing strategies employed by Adidas have played a pivotal role in
strengthening the company's brand image and connecting with consumers on an emotional level. By
embracing digital marketing and social media platforms, Adidas has effectively engaged with its
target audience and created a community of brand advocates.

3. Positive Outlook for Adidas' Future Prospects (40 marks):

Based on the comprehensive analysis of Adidas' strategy management and financial performance,
the company's future prospects are promising. Several factors contribute to this positive outlook:

- Continued emphasis on innovation and product development: Adidas' commitment to pushing the
boundaries of innovation will enable the company to introduce new and exciting products that
resonate with consumers. The integration of technology, such as wearable tech and smart fabrics,
will further enhance the performance and functionality of Adidas' products.

- Growing importance of sustainability: As environmental concerns continue to rise, Adidas'

sustainability initiatives will not only contribute to a better planet but also attract a growing segment
of eco-conscious consumers. Adidas' focus on circularity, recycling, and responsible sourcing will
position the company favorably in the market.

- Market expansion opportunities: Adidas has identified key regions and countries for growth,
particularly in emerging markets. Continued investments in these markets, along with a deep
understanding of local consumer preferences, will help Adidas capture new customers and drive
revenue growth.

- Digital transformation and e-commerce growth: The increasing shift toward digital channels and e-
commerce presents significant opportunities for Adidas. By leveraging its digital capabilities,
enhancing the online shopping experience, and expanding its e-commerce presence, Adidas can tap
into the growing online retail market and reach a wider customer base.

- Strong brand equity and customer loyalty: Adidas' iconic brand and its ability to connect with
consumers emotionally through effective branding and marketing efforts will continue to drive
customer loyalty and preference. The strong brand equity provides a solid foundation for future
growth and sustains Adidas' competitive advantage.

Overall, Adidas' strategic approach, combined with its financial performance and market position,
positions the company for a bright and prosperous future. By staying true to its core values,
embracing innovation and sustainability, expanding into new markets, and leveraging its brand
strength, Adidas is well-positioned to navigate the evolving sportswear industry and capitalize on
emerging opportunities.