Ed Williams

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• Presented By
• Ed Williams
• Astra Curry
• Kenneisha Seymour
• Cody Weflen

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Introduction

• Adidas History
• Corporate Mission
• SWOT Analysis
• International Challenges and Competitors
• Global market
• Industry Analysis
• Global Issues
• Recommendation

3
History

• Background Information
• Headquarters- Herzogenaurch, Germany
• Employees- 26,376 as of December 2006
• Website- www.adidas.com

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History Timeline

• 1920 Adi Dassler made his first shoes in
  Herzogenaurach near Nuremberg in Germany at the
  age of 20.
• 1925 Developed the first special shoes for soccer
  and track and field.
• Studs and spikes where introduced for the first
  time.
• 1947 After World War
• Adi Dassler started with 47 workers
• Made post war shoes using canvas and rubber from
  American fuel tank.

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Timeline Cont.

• 1948 The two brothers Adi and Rudi Dassler split
  up due to dispute.
• 1948 Adidas registered as a company named after
  its founder Adi and Das Dassler.
• Rudi, on the advice of an advertising agency
  changed his company to Puma.
• 1949 Registered the unmistakable three stripes.
• 1954 Breakthrough came when Germany won the
  Soccer World Cup wearing boots with screw in
  studs by Adidas in Hungary.
• 1960 Adidas apparel for competition and training
  was produced.

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Timeline Cont.

• 1978 Adi Dassler dies at the age of 78.
• 1987 Unexpectedly Horst Died at the age of 51.
• 1989 Adidas was transformed into a corporation
  Aktiengesellschaft and retained family
  ownership.
• 1991 Adidas equipment was launched.
• 1992 A younger target was addressed with street
  ball.
• 1993 Robert Louis Dreyfus took over management if
  Adidas.

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Timeline Cont.

• 1995 In Germany stock market, Adidas was one of
  the most interesting new listings.
• 1996 Adidas equipped 6,000 Olympic athletes from
  33 countries.
• Adidas athletes won 220 medals, including 70
  gold.
• Apparel sales increase by 50.
• 1997 Adidas AG obtained the Salomon Group with
  the brands Salomon, TaylorMade, Mavic and
  Bonfire. The new company is named Adidas-Salomon
  AG.

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Timeline Cont.

• 2001 first Adidas original store opened in Berlin
  followed by Tokyo in December.
• 2002 Adidas opened its new North American
  headquarters downtown Portland, Oregon.
• 2003 Adidas was included in Dow Jones
  Sustainability Indexes (DJSI) for a 4th
  consecutive year.
• Opened a 3,500 square foot meter Factory Outlet
  with sales floor space around 2,000 square
  meters.
• Sales reached 6.3 billion and net increase of 14
  to 260 million.

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Timeline Cont.

• 2004 Adidas partnership with Stella McCartney.
• 2005 Adidas Salomon AG sold Solomon business
  segments (including Salomon, Mavic, Bonfire,
  Cliché and ArcTeryx) to the Amer Sports
  Corporation.
• 2006 Adidas-Salomon AG bought Reebok.
• 2008 Adidas will be the Official Sportswear
  Partner for the Olympics in Beijing.

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Corporate Mission

• Strives to be the leader in sports gear and
  apparel
• Improving operations
• Core Values
• Performance
• Passion
• Integrity
• Diversity

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• SWOT Strengths
• Top market position
• Strong brand name
• Geographically-diversified operations

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• SWOT Weaknesses
• Poor margins
• Low inventory turnover
• Poor ROA and ROI
• Underperformance of Reebok

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• SWOT Opportunities
• Sponsorship agreements
• Adoption of healthier lifestyles
• Growing global footwear market

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• SWOT Threats
• Rising costs of raw materials
• Counterfeits
• Legal Risks

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International Challenges and Competitors

• Nike challenges Adidas in home market
• Adidas Acquires Reebok to challenge Nike
• Competitors
• Nike
• Puma
• Others
• Amar Sport
• Rossignol

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Market Share

• Nike
• 36 in United States Market
• Adidas and Reebok
• 21 in United States Market
• Reebok gave Adidas a 28 share in footwear market
• Puma
• 1.1 in United States

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Global Market

• Number of Employees
• 26,376
• Merged with Reebok
• Global market share of 35
• Product line is widely ranged

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Industry Analysis

• Adidas is large part of industry
• Industry includes apparel, footwear, and
  accessories
• Adidas purchase of Reebok

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• Adidas Subdivisions
• Adidas
• Main part of company
• Different Divisions
• Sport Performance
• Technologically oriented (mi innovation center)
• Sport Heritage
• Original and past inspired products
• Sport Style
• Future stylish sportswear

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• Adidas Subdivisions
• TaylorMade-Adidas Golf
• Founded 1979
• Leader of golf industry
• Endorsements and Sponsorships
• Retief Gooson
• Scott Verplank
• Sergio Garcia
• John Daily

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• Adidas Subdivisions
• Rockport
• Founded 1971 by Saul and Bruce Katz
• Operates in 66 countries
• Purchased by Reebok in 1984
• Adidas acquired Rockport when it acquired Reebok

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• Adidas Subdivisions
• Reebok
• Bought by Adidas in 2006 forming the Adidas Group
• Purchased to better compete with Nike
• Nike still number one but Adidas Group very close

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Global Issues

• Europe
• Slow Growth
• Due to rising costs of resources
• China
• Big Boom
• Due to increasing popularity of sports

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• Future Trends
• More internationally oriented
• More Endorsements and Sponsorships
• Increased R D
• Looking at new technologies

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Recommendations

• Short Term
• Invest in producers of raw materials
• Keep up with endorsements and Sponsorships
• Long Term
• Increase R D
• Advance further in Technologies
• Keep supporting diversity

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Any Questions?