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Adidas Case Study

Primary Question for adidas. Does adidas's corporate strategy, including recent acquisitions and restructuring, stay true to its brand while positioning itself to improve shareholder value and challenge Nike as the leader of the global sporting goods industry?. Secondary Questions. What enabled adid

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Adidas Case Study

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    1. adidas Case Study By: Ray Moorman Dan McLindon Tom Anderson Kyle McDaniel Jeremy Smiley

    2. Primary Question for adidas

    3. Secondary Questions

    4. What enabled adidas to be the Market Leader in the past?

    5. Product Innovation Analysis adidas was an early entrant into athletic shoe industry. They developed many of the features still present in shoes today. Strong presence in Olympics and soccer. Created a strong brand based on high quality, innovative products that top athletes choose to use in training and competition.

    6. Marketing Innovation Developed strong following with top track and field athletes. Applied this same model years later with soccer shoes and apparel. Successful because adidas was creating innovative, high quality products. Product innovation enabled marketing innovation. Different than Nike marketing is what set them apart from the start.

    7. What is happening in the industry and how did adidas lose the lead to Nike?

    8. External Environment: PEST Significance represents value-neutral impact, and may be either positive or negative for Whole Foods.Significance represents value-neutral impact, and may be either positive or negative for Whole Foods.

    9. Porters 5 Forces

    10. Porters Five Forces

    11. How Did adidas Lose US Market Share to Nike?

    12. How has adidas's corporate strategy changed over time, specifically before and after the 2005-2006 restructuring?

    15. What has the adidas brand represented in the past and what does it represent today?

    16. adidass Brand

    17. A Closer Look at Brand Today

    18. A Closer Look at Brand Today

    19. A Closer Look at Brand Today

    20. The Importance of Brand Identity

    21. Have adidass acquisitions helped improve their position against the competition?

    22. Salomon Acquisition: Was it Successful?

    23. adidass Stock Price

    24. adidas after Salomon was divested

    25. TaylorMade-adidas Golf Sales by Product Line

    26. 2007 TaylorMade/adidas Golf Sales Breakdown

    27. SWOT Analysis for Reebok

    28. SWOT Analysis for Reebok

    29. Reebok Acquisition On paper it looks like Reeboks product portfolio, endorsements and relationships round out adidas and together they can join forces to overtake Nike. Issue is can management overcome Reeboks reputation for poor quality and lack of innovation? Can two companies come together with such different cultures and focus? adidas product innovation and commitment to quality Reebok marketing focus

    30. What role do developing countries have in adidas's future success and how is adidas positioned in those countries?

    31. adidas is a global player 43% of sales from Europe, which is slowest growth market Encouraging that #1 in developing eastern European market, Russia expected to be most profitable market in Europe by 2010 2006 acquisition of Reebok not enough to overcome Nike in North America Growing number of sales in Asia market, fueled by adidas success in China. Strong demand and large population

    32. Net Sales in Emerging Markets

    33. Regional Footwear/Apparel Markets

    34. Should adidas be concerned about losing North American market share to Nike?

    35. adidas AG Geographic Revenue Performance

    37. adidas Global Revenue Sources (2007)

    38. Reebok Global Revenue Sources (2004)

    39. U.S. Retail Store Strategy

    41. Use adidas as revenue driver outside of U.S. market restructure Reebok strategy to capitalize on historic revenue performance in U.S. Decrease number of adidas retail outlets in U.S. - convert to Reebok retail Increase Reebok U.S. endorsements Use adidas global distribution to further increase TaylorMade international revenues

    42. Recommendations Be satisfied with #2 in the U.S. market. Nike is Nike and will continue to be Nike Focus on strong growth potential in Europe, Asia, and Latin America. Increase distribution networks in these markets Increase brand loyalty and brand awareness in these markets through contractual endorsements with athletes

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