Professional Documents
Culture Documents
PRESENTED BY:
DHAVAL MUCHHALA (9108)
HARSH RATHOD (9216)
SRIJIB MISRA (9251)
COMPANY OVERVIEW
Adidas is a global company that manufactures
sports goods, apparels, shoes and equipments
Ranked No. 2 globally
Market share is 33.65% as on 2009
Revenue structure:
Apparel = 45%; Shoes = 45%; Hardware = 10%
Adidas Group consists of the brands Adidas,
Reebok and Taylormade
MISSION STATEMENT:
“ To become the best sports brand in the world. To that
end we will never equate quantity with quality”
VISION STATEMENT:
“Our vision is for everyone in the Group and our supply
chain to share a common set of values and to follow
responsible business practices”
MARKET SHARE OF ADIDAS
2009 (In US $) 2009 (In US $)
Company Revenue (In Millions) Net income (In Millions)
Nike 18,627 1,883.40
Adidas 13,377 316
Puma 3,261 167
Sketchers 1,436 55
Columbia Software Company 1,244 67
Callaway Golf Company 951 -15
Under Armor 857 47
Nike
Adidas
Puma
Sketchers
Under Armor
STRATEGIES FOLLOWED BY ADIDAS
• Adidas sports performance: Divisional Overview
– Football: Expanding market leadership
– Running: Building credibility with high performance athletes
– Training: Creating new consumer experience
– Basketball: Creating Consumer footprint
– Outdoor: The athletic brand in outdoors
Other Campaigns
Opportunities Threats
1. Change in consumer lifestyles. 1. Competition from foreign markets
2. Available technological innovations 2. Competitor's actions
3. Low barriers of entry in new markets 3. Change in consumer lifestyles
4. Expand customer base 4. Changing consumer patterns
5. Expand product/service lines 5. Growing power of customers to set the price
6. Market Diversification 6. Growing power of suppliers to set the price
7. Merger or takeover 7. Financial slowdown
8. Increase in taxation
9. New competitors entering the market
10. Price war between competitors
11. Bonur Achieved by competitors.
COMPANY FINANCIALS (in million euros)
Porter`s 5
Force Bargaining power of
Bargaining power of
Suppliers – Low Analysis Customers – High
•Many Suppliers – bargaining • Large number of buyer
power non existent relative to number of firms
• Dependency on large firms • Customization and
for their survival designing
PESTLE Analysis (1 of 6)
• Political
– Adidas provides training sessions on employment
standards, HR systems, health and safety
– Establishing teams to manage and monitor SARS in Asia
factory, washing stations, disinfectant units.
• Legal
– Adidas protects and supports the rights of its
employees by following all the current employment
laws.
PESTLE Analysis (2 of 6)
• Economic
– As a multinational company Adidas helps
countries to increase employment opportunities.
– The Industrial Production growth rate in Germany
was 1% in 2001-03, in 2004 it was 1.7%. This
increase was due to the big sponsorship in 2004
Olympic Games.
PESTLE Analysis (3of 6)
• Sociocultural
PESTLE Analysis (4 of 6)
• Technology
• Environmental
– Adidas uses recycled paper and other
environmentally-friendly packaging materials.
– Using the hot melt system in the production by using
Heat – activated adhesives is environment friendly.
– Adidas policy is to control and monitor hazardous
substance to protect human health and
environment. Like, eliminating PVC by finding
substitutes like polyurethane, ethyl vinyl, silicones
thermoplastic rubber.
SUGGESTIONS
• Increase product line
• Reduce operational cost
• Initiate marketing campaigns to tap ethnic
groups