Company Profile

Formerly Dassler Brothers Shoe Factory (Gebrüder Dassler

Schuhfabrik) (1924–1949)
Type Aktiengesellschaft
Founded July 1924; 94 years ago (as Gebrüder Dassler
Schuhfabrik)
18 August 1949; 68 years ago(as Adidas)
Founder Adolf Dassler
Headquarters Herzogenaurach, Germany
Products Footwear, sportswear, sports equipment, toiletries

Number of employees 56,888 (2017)

Website www.adidas-group.com
5 COMPETITORS
 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. We are committed to
continuously strengthening our brands and
products to improve our competitive position.
 VISION
• We are innovation and design leaders who seek to help athletes of all
skill levels achieve peak performance with every product we bring to
market.

• We are consumer focused and therefore we continuously improve the

quality, look, feel, and image of our products and our organizational
structures to match and exceed consumer expectations and to provide
them with the highest value.

• We are a global organization that is socially and environmentally

responsible, that embraces creativity and diversity, and is financially
rewarding for our employees and shareholders.

• We are dedicated to consistently delivering outstanding financial

results.
LOGO
 STRATEGIC PLAN 2015-2020
• SPEED
• CITIES
• OPEN-SOURCE
 SPEED
• adidas has set itself the goal to become the
first true fast sports company. Key milestones
were achieved on the road to this goal in
2016.
 CITIES
• New York
• Los Angeles
• London
• Paris
• Shanghai
• Tokyo

Above-average volumes of sporting goods are

purchased there, and these mega cities also play an
influential role in shaping trends, both nationwide and
globally.
 Open-source
• ‘Open Source’ is a model based on open
collaboration between adidas and external
partners from the worlds of industry, sport
and entertainment as well as consumers.
The making of the shoes

Raw materials

Making upper Knit

Inspection of finished full
prime knit

Cutting out lining and

tongue
Adding Labels

Assembly and Stitching of

the uppers
Quality check of the
assembled uppers

Lasting of uppers
Attaching the heel
counter and outsole to
the midsole

Joining the uppers with

the soles
De - Lasting

Packing
Delivery of products to
the stores
Making of Dry Dye Shirt

The clean fabric is loaded into the

dyeing vessel
 RAW MATERIALS
• the BCI aim to reduce the use of
pesticides, it also promotes
efficient water use, crop rotation
and fair working conditions.
• Recycled nylon is made from
post-industrial and post-
consumer waste.
• Recycled polyester (PES) is a
synthetic fibre based on post-
consumer waste.
LEATHER
• our policy also prohibits using
leathers from animals that have been
inhumanely treated, whether these
animals are wild or farmed.
• adidas takes steps to address these
impacts through active participation
in the BLC Leather Working Group
which has developed stringent
standards and audit protocols and
checks compliance through
independent monitoring of tannery
sites
RECYCLED POLYSTRENE
• The new heel counter, called
Framaprene® ECO, contains more
than 50% recycled content made of
old food packaging.
 MAKING FABRICS
ADIDAS DRYDYE
• Dry-dyeing uses no water at all.
ADIDAS NODYE
• “NoDye” to refer to materials used in their
natural color state.
• Always seeking innovative ways to reduce
its environmental footprint, adidas launch
the eco-conscious 11pro and adizero f50
No Dye.
 FOR SHOES
PARLEY FOR THE OCEANS
• We are working with parley to prevent plastic entering our
oceans and transform it into high performance sportswear.
• Last year, Adidas and Parley for the Oceans sold more than
a 1 million sneakers made with recycled ocean plastic.

SPORT INFINITY
• -In future, football boots could therefore contain any type
of material from carbon fibres that are used in aircraft con-
struction to the fibres of football boots that shot goals
during the last world cup.
• - "infinity-recycling.“
BIOSTEEL® FIBER -
• The adidas Futurecraft Biofabric
prototype shoe features an
upper made from 100%
Biosteel® fiber

LOW WASTE –
• The adidas low-waste produces
footwear and sports apparel.
 SOURCING
Our influence in terms of social and
environmental compliance is linked to the
strength of our partnerships, and is often
proportional to the scale and stability of the
orders placed with our suppliers.

• Direct sourcing model

• Indirect sourcing model
• Local market production
ONBOARDING: Selecting new suppliers
- all potential suppliers are assessed by SEA team by
setting high entry bar.
• Audit process: Checking the rules are followed
• Rating scores: Rating good performance and
taking action over poor performance
- at the end of each year the factory gets score
- evaluating poor performance through supply
chain code of conduct.
 EMPOWERMENT WORKPLACE
STANDARDS CAPACITY BUILDING
• Empower workers: Improving management-
worker communication
- ‘Worker Hotline’/ open letters
• Working with Licencees
- Consultant external monitors
 AUDIT RESULTS (KPI)
• Rating Suppliers: Key Performance Indicator
(KPI) tool rating
- management commitment
- quality of management systems in place
- worker-management communication
- training delivered
- transparent reporting
- measurement of compliance activities
 CORRECTIVE ACTION PLANS
• Dealing with non-compliances
Enforcement guidelines:
- stop-work notices
- third-party investigations
- warning letters
- reviewing orders
- commissioning of special projects to
remedy particular compliance problems.
 SWOT
Strengths:
• Fast growing sales and improved financial
performance: Brand image and equity
• Focus on marketing
• Product innovation
• Excellent supply chain and distribution network
• Fast growing sales and improved financial
performance:
 SWOT
Weaknesses:
• Higher material and labor costs leading to
higher cost of sales
• Overdependence on Developed economies
 SWOT
Opportunities:
• Fast growing sports shoe market
• Digital Marketing opportunities
• Product innovation
 SWOT
• Threats:
• Heavy competition
• Economic fluctuations