Strategic Management Documentation

Adidas is a company that manufactures shoes and sport apparel. The founder is Adolf Dassler who is German. The name created by combination of the name and surname Adi Dassler, who started producing shoes in 1920s with the help of his brother Rudolf Dassler. That make costumer, to recognize Adidas is three parallel stripes of the same color.
Slogan: “IMPOSSIBLE IS NOTHING”

1. History 1949-2005
Due to the death of Adolf’s son (Horst Dassler), the Company was bought in 1990 by Bernard Tapie. Back then Tapie was specialist of rescuing bankrupt companies. Next step was to change the place of production to Asia and make a promotion campaign by using a famous person as Madonna (famous singer). In 1992 economical problems lead Tapi to sell Adidas to Lyonnais bank. Lyonnais sold Adidas to Robert Louis-Dreyfus who was also the president of the Olympique de Marseille football team. In 1997, Adidas AG acquired the Salomon Group, and its corporate name was changed to Adidas-Salomon AG. Seven years later, top English fashion designer Stella McCartney launched a joint-venture line with Adidas. This line was a sports performance collection for women called "Adidas by Stella McCartney". After 2 years, Adidas introduced the Adidas 1, the first ever production shoe to utilize a microprocessor. In August 2005, Adidas bought rival Reebok. At the same time sales had been closer to those of Nike in North America. The acquisition of Reebok would also allow Adidas to compete with Nike worldwide as the number two athletic shoemaker in the world. Three months later Adidas released a new version of the Adidas 1, make it better, stronger and faster. On April 11 2006, Adidas announced an 11-year deal to become the official NBA apparel provider.

2. Products
Adidas manufactures anything related to sport, like shoes, clothes, watches, balls, Sunglasses, Protective Equipment, etc.
You can purchase Adidas almost anywhere. Except original stores that placed in every city in every country; you can find them also in super market as perfume shower gel etc, or in jewel store as watches. The pricing for per of shoe fluctuate 60 to 250 Euros, High price for most people; justifiably for High quality materials that company use.

• PLANING

Mission Statement

“Our mission is to become the best sports brand in the world. To that end, we will never equate quantity with quality. Our founder Adi Dassler was passionate about sports. For Adi, the athlete came first. He gave those on the field, the court and the track the unexpected and the little differences that made them more comfortable and improved performance. This is our legacy. This is what the brand stands for. This will never change.”

Vision

Passion for sport. This is adidas. We consistently bring our passion to every single sport, wherever and whenever it is played. Whether it's football in the park or the 100 meters at the Olympics - we have been there, we are there now, and we will always be there. Our dream is to bring our passion for sport, the athlete and the product, to anyone who comes into contact with adidas.

Objectives

We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to the market.
We are a global organization that is socially and environmentally responsible, creative and financially rewarding for our employees and shareholders.
We are committed to continuously strengthening our brands and products to improve our competitive position and financial performance.
In the medium term, we will extend our leading market position in Europe, expand our share of the US footwear market and be the fastest growing major sporting goods supplier in Asia and Latin America. The resulting top-line growth, together with strict cost control and working capital improvements, will drive over-proportionate earnings growth.

Decision-making style: Centralized / programmed

S.W.O.T. Analysis

Strengths
• In many invents is the biggest sponsor
• Strong management team
• Brand recognition and reputation
• Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.)
• Strong control over its own distribution channel
• No bad reputation like child labor or environment pollution
• In the Soccer industry, Adidas has a stronghold

Weaknesses
• High prices in some products
• E-commerce is limited to USA
• The direct sale to consumers is creating conflicts with its own resellers
• Online customer service not "helpful" or easy to find

Opportunities
• Increase female participation in athletics “Adidas by Stella McCartney”
• Collaborate with other online retailers to offer Adidas products
• Possibility of outsourcing the web development and e-commerce to a third party developer
Threats
• Nike's strong reputation in the footwear and apparel industry
• Negative image created by the sponsored athletes (i.e. Kobe Bryant and his sexual assault case)
• Increase in the Price of Raw materials
• Continuing challenges in import/export duties

PEST Analysis

Political
Adidas policy is to control and monitor hazardous substance to protect human health and environment one of those is to eliminate PVC making progress in finding substitutes like polyurethane, ethyl vinyl, silicones thermoplastic rubber. Adidas also provide training sessions on employment standards and HR systems, health and safety is important for the company. Establishing teams to manage and monitor SARS in Asia factory, washing stations, disinfectant units. Finally Adidas protects and supports the rights of its employees by following all the current employment laws.

Economical
As a multinational company adidas helps countries to decrease unemployment by increasing every year the number of employees. The Industrial Production Growth Rate in Germany was 1% in 2001-3, 2004 become 1.7%. Adidas is a reason of this increase Because of the big sponsorship in 2004 Olympic Games. As exporting to Europe is not too expensive as it was before, Europe since 2002 has own money (euro) and the borders are not so tight. Labor salary is high in Germany and France but not so expensive in China (Suzhou). This is the reason that most of factories located in Asia.

Social
Adidas products declare in any raise, age, religion, and lifestyle, always in fashion with special design in any of product. Focus in people who like sports and athletes, almost everybody can purchase adidas products.

Technology
Adidas join into technology by make up the world’s first “smart shoe”, adding a microchip inside the shoe and wireless mp3 player. Also using hot melt system of the production that is environmentally safe, using heat-activated adhesives. The packaging that company use, are suitable for transportation over long distances, humid conditions and extreme temperature changes and use recycled paper and other environmentally-friendly packaging materials.


As many competitors that Adidas has, the external environment can’t be no other by dynamic.

BCG Matrix

Apparel Watches

Footwear Eyewear