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Sherzod Artikov Brian Ross Clara Fischer Daniel Boudreau. Introduction. Sherzod History SWOT Analysis Brian Global Expansion Domestic & International Operations Clara Competitors Industry Daniel Recommendations. History.
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Sherzod Artikov Brian Ross Clara Fischer Daniel Boudreau
Introduction • Sherzod • History • SWOT Analysis • Brian • Global Expansion • Domestic & International Operations • Clara • Competitors • Industry • Daniel • Recommendations
History • 1948- Dassler Brothers Shoe Factory split up forming Adidas & Puma • April 18, 1949- officially registered as Adidas AG • 2006- acquired British rival, Reebok, for $3.8 billion
Strengths First movers in e-commerce Brand recognition & reputation Strong foothold in different industries through mergers with other companies. Weaknesses E-commerce is limited to USA & United Kingdom Online customer service SWOT Analysis
Opportunities Increasing demand for online products Expand e-commerce to global markets Collaborate with other online retailers to offer Adidas products Threats Strong competition Global economic downturn Increase in the price of providing e-commerce Price increase in raw materials SWOT Analysis
Global Expansion • Headquarters: Herzogenaurach, Germany • January 31, 2006: acquisition of Reebok-owning two of the three top brands behind Nike • Made a strong & powerful identity throughout the world for athletes & teams • Types of corporate units: baseball, basketball, soccer, golf, & many others
Global Expansion • Opened its first U.S. based store in 2002 in N.Y.C. • One of the largest sportswear manufactures in Europe • Number two behind Nike worldwide • Sponsors many teams such as the New England Rugby team
Domestic & International Operations • Be on the back of TaylorMade-Adidas golf which has a tremendous uprise: 48% from 2008 • World’s largest Adidas wholesale store in Beijing, China • Advertising worldwide increases profit & broadens opportunities • Expanding more will solidify a better relationship with countries
Competitors • Nike • Puma • New Balance
Nike • Largest supplier of sports footwear & apparel, with Adidas following as the 2nd largest • Publicly traded company that competes internationally • Headquarters: Beaverton, Oregon • Slogan: “Just Do It” • Founded: 1972 • Went public in December 1980
Nike • Owns four key subsidiaries: Cole Haan, Hurley International, Converse Inc. & Umbro • Reported a decline in sales for the quarter ending February 28, 2009 • Future orders for shoes and apparel have declined 10%
Puma • Emerged from the ownership split between two brothers • Headquarters: Herzogenaurach, Germany • Distributes products in more than 80 countries • Current CEO: Jochen Zeitz since 1993
Puma • During the final 3 months of 2006, profits had fallen by 26% • Due to increased expansion costs • Sales actually rose more than a third • Receives most of its recognition through sponsoring athletics • In the 2008 Beijing Olympics, Puma sponsored a three time gold medalist in track
New Balance • Founded: 1906 • Headquarters: Boston, Massachusetts • Privately held company, also sells internationally • Offer their shoes in a wide variety of sizes & widths • Brands owned by New Balance: Dunham, PF Flyers, Aravon, Warrior, & Brine.
New Balance • Manufacturers its shoes in the United Kingdom-produce over 28,000 pairs of shoes per week • Also manufacture in the U.S. • Marketing strategy: not giving shoes a name, rather a number • Most affordable • Does not want celebrity endorsers, rather everyday people
Industry • 100 manufacturers, 1,500 wholesalers & 30,000 retail outlets • Combined annual retail revenue= $25 billion • Demand driven by fashion & demographics • Athletic shoes account for 30% of sales in the retail market • Average person in the U.S. purchases more than four pairs of shoes each year, labeling the U.S. as the world’s largest importer of footwear
Short-term Recommendations • Go Green- Produce more eco-friendly products • Create more sponsorships with professional athletes • Better advertisements in the USA
Long-term Recommendations • Keep building brand equity (buying out companies) • Work together with technology (Reebok is currently making the best hockey equipment) • Sponsor a premier soccer team for the World Cup in 2010
Conclusion • Adidas was introduced in 1948 • Number 2 sports apparel supplier world wide next to Nike • Revenues of Adidas are approximately 25 billion dollars a year • CEO Herbert Hainer has made promises to take Adidas into the next generation and become the number one sports apparel brand in the world