Adidas Economics

The organizational forms a company might have as it evolves from a start-up to a major corporation are proprietorship, partnership, or corporation.

b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

The organizational forms a company might have as it evolves from a start-up to a major corporation are: sole proprietorships, partnerships and corporations. The advantages of a sole proprietorship are that is is easily and inexpensively formed; is subject to few government regulations and it’s income is not

The Rivalry among competing sellers of sporting goods such as Under Armour, Nike, and Adidas-Reebok is strong and likely to intensify. The rivalry among sporting good sellers of energy will keep growing and will become stronger in coming years. Under Armour. Nike, and Adidas-Reebok have similar or competing product offerings and that is why competition among them is so high. If these companies want to stay in business they need to come up with different strategies that will set them apart from the opposition. Competition is intense and revolves around performance,

Consumer demand risks for this group occur because as product demands change, it takes the company on average 12 to 18 months to obtain new products. If consumer demand changes too quickly, this can result in revenue loss. Over a period of time, if the consumer demands are not met in a timely fashion, this can be detrimental and critical to Adidas Group. Industry consolidations risks result in decreased bargaining power and price wars. It could also lead to inflated discounts on Adidas products as well as limited space within the retailers. This risk comes from market consolidation and strategic alliances. Political and regulatory risks- trade policies in particular, stem from restrictions on importing, tariffs, and other factors that could influencing or disrupt the free flow of goods within the company and other vendors. There are several sources that legal risks could come from. The main legal risks that the Adidas Group is faced with are patents and third-party trademark infringement. With so many competitors in the same industry, they must be careful not to raise concern for risk. Risks from product counterfeiting and imitation come from brand and design theft. Social and environmental risks for Adidas Group refer to the company’s responsibilities to their employees, vendors and the environment in which they provide.

b) Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.

Organizational structure is the most crucial element for the success of any business. This is because of the way it facilitates and supports the management system of the organization. It is through the structure that specialization and differentiation are attained. For effective management of the employees, different firms employ different structures for the organization that is unique to its operation and the organization culture.

In the sportswear industry, the two giants Nike and Adidas are crushing the competition for years. It is Difficult for a brand to come face a competition of this magnitude on land that weighs billions of dollars worldwide. but new competitors try to come to snatch market shares to Adidas and Nike without any real success with more or less success, these brands only gain few crumbs that give up the powerful German-American duo. However, the US brand Under Armour comes to undermine the dominance of Nike and Adidas.

As shown in Figure 2 of the Appendix, a Porter Five Force Analysis makes it clear that the overall rivalry within the athletic apparel industry is medium to high. Because Nike and Adidas already have a substantial amount of capital resources and other assets, Under Armour struggles against them to gain market share. 8Also, private labels of retailers and newer sports apparel companies could potentially pose a threat to Under Armour, but mostly due to the fact that Under Armour does not hold any fabric or process patents. This makes it extremely easy for any competitor to duplicate a product or process with no consequence. However, the threat of new entrants is not too troublesome within the industry because of the great capital cost required for branding, advertising, and meeting product demand. Furthermore, the sports apparel industry is in the maturity phase of the industry life cycle. This means that each company included in the oligopoly must

Nike is an international company which specializes in designing, making and selling athletic footwear. The company specializes in designing high-quality products which are used worldwide by many people. Apart from being used in athletic and basketball games, the company 's products are used as casual wears. Apart from making and selling footwear, the company also offers a wide range of services to its customers and also sells both equipment and their accessories. The company has well-organized marketing system, including an online platform via the web. Due to its vast activities, the company has independent and licensed contractors who produce products on behalf of the company in different regions. Some products, such as footwear are primarily produced by their contractors outside the United States, while equipment are produced both locally and abroad. Their branches are managed independently, but under one common top management at the main offices. The various financial statements are consolidated at the end of the year and released as a one company report. The financial statements of the company are prepared both quarterly and annually. The business products are sold to wholesale customers, retail customers as well as individual customers who are the final users of the products. To increase its operations and boost sales, the company also has non-affiliated parties who independently manufacture and sell Nike products using the company 's logo.

1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the

This project will explain in detail the structure of those organisations,list the documents required to set up every single one of them and will also mention about financial accounts needed to inform stakeholders about the business activities.

Since Adidas Group is a very large corporation; it has to structure the organization efficiently and effectively in order to

Adidas is a major German sports apparel manufacturer, which was founded in 1948. It is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after Nike. The company's clothing and shoe designs typically feature three parallel bars. The company revenue for 2009 was listed at €10.38 billion. The market segmentation; targeting and position play an important role in this company. This essay will use the three factors to analyze this company.

for the company is nowadays towards teams, global sports events and sport associations (Dogiamis & Vijayashanker, 2009). Adidas can this way connect itself with emotional events in sport; they sponsor the European football championship, the soccer World Cup and the Olympics. They also sponsor national and local teams around the globe (Dogiamis & Vijayashanker, 2009). Adidas has changed their image from just targeting elite athletes and is now more about participation. (Aaker & Joachimsthaler, 2000)