Adidas Relationship

This paper is dealing with the German apparel “Adidas”, which is one of the world’s largest manufacturers for sportswear and sport utilities. But why are they one of the leading global players in this certain industry? There are some key factors, which influenced their

The forces of Nike’s customer-supplier relationship is based on joint efforts of improved quality, mutually beneficial partnerships, reduced costs, and increased market share for both parties. According to Nike building customer-supplier relationship is one of the most important goals because it is the analysis of the value chain which is defined as the collection of all activities involved in designing, marketing, manufacturing, delivering and supporting Nike’s products. Having strong relationship with both parties helps Nike to predict and notice any problem at might rise in the supply chain; as a result Nike will be able to develop better solutions to avoid it (Wankel, 2009). The first tier supplier of Nike is located mainly in Taiwan and South Korea, which work closely with R&D personnel in Oreon making the most expensive footwear. Strategies have shown that Nike implements include the vertical integration strategy. In general, the vertical integration strategy allows a firm to gain control over distributors, suppliers and competitors (Nike report, 2015). Nike has implemented forward integration by having its own retail locations throughout the United States, foreign countries & online stores. Every partner has a hugely significant

Footwear and apparel have eight categories: running, basketball, soccer, women’s training, men’s training, action sports, sportswear and golf. Equipment refers to bags, socks, sport balls, eyewear, digital devices, etc. The global brands that Nike owns are Jordan Brand, Hurley Brand and Converse Brand, they are very well established. This broad range of products and product types is one of the reasons that Nike has maintained its high position in the market, in that it appeals and has appealed to a larger and more varied selection of customers. Adidas currently has three brands under the Adidas group: Adidas, Reebok and Taylormade; the different brands address the different types of consumers. Both Adidas and Reebok brands have a strong market share. However, Taylormade has a low market share, and therefore is not benefiting Adidas to the full of its potential, especially when compared to Nike’s Converse brand which by itself owns 2% of the brand share of dollars (Figure 1). Under Armour also has a broad range of product differentiation which is broken into four major segments: apparel, footwear, accessories and connected fitness. Despite their broad differentiation, Under Armour does not currently own any brands. Overall, Nike has a broader and more established range and brands that help Nike stay ahead of its

Nike subcontracts the production process of its footwear to 900 contract factories located worldwide with Asian developing countries such as China, Indonesia and Vietnam accounting for the bulk of total world production. Production of the footwear is based on a vertically integrated model. In the primary stage, raw materials such as rubber, leather and plastic are extracted from places located in close proximity from the factories. In the secondary stage, the extracted resources are sent to the factories or “Sweatshops” for manufacturing. It should be noted that the whole production process of Nike footwear are being carried out by independent private contractors.

Adidas is a sportswear manufacturing company started by Adolf Dassler. Adidas group has incorporated brands including Adidas, Reebok, TaylorMade-Adidas and Rockport. The wings of the company are widespread and have assimiliated other productions including handbags, shirts, spectacles, watches, balls, and sportswear. Adidas is being the largest company that sells footwear in the European market and have achieved a momentous market share at the global platform. Adidas has achieved phenomenal sale and have reached the pinnacle of success on the global scale with other international footwear companies (McDonald & Milne, 1999).

Supply management is a complex function that’s critical to business success, responsible for delivering efficient costs, high quality, fast delivery and continuous innovation throughout companies’ entire supply chains. The strategic contribution of supply management is measured not only in savings made, but also in increased shareholder value (Niezen, Weller & Deringer, 2007). Nike and Adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. The purpose of this report is to compare and evaluate the supply chain management practices of Nike & Adidas.

A simplified example of Nike’s Supply chain with the upstream portion focusing only on the supplier for sneakers in figure 1 (Laudon and Laudon, 2017)

Adidas, founded by Adolf Dassler, is a German international company, that is located in Herzogenaurach, Germany, that designs and produces sportswear and footwear. Adidas is currently the second largest sportswear company in the World, Nike being the largest. However, Adidas has grown dramatically in the 21st Century, making Adidas the largest sportswear company in Europe. Over the years Adidas has created a group called the Adidas Group it consists of Reebok, TaylorMade-Adidas company, Ashworth, and Rockport.

Adidas is a manufacturing sportswear in B2C, with many points of sale or online sales. Adidas wants to be close to customers, and created innovating concept stores, as explained further in our file.

Adidas wants to achieve the flexibility strategies which shorten creation and production lead times by continuously improving our infrastructure, processes and systems to react quickly to consumer

Adidas is a German international company that designs and produces sportswear and footwear. Over the years Adidas has created a group called the Adidas Group it consists of Reebok, TaylorMade-Adidas company, Ashworth, and Rockport.

Adidas was created in 1924 in Herzogenaurach a small town just outside Nurnberg in Germany. The company’s headquarters are still located in Herzogenaurach in Germany with subsidiaries in 60 countries. Adolf “Adi” Dassler was the founder of Adidas and he started to produce his own sports shoes in his mother’s wash kitchen. Adolf’s brother named Rudolf Dassler joined the business right after World War I. The company started in 1924 called Gebruder Dassler OHG, and began to manufacturing shoes for athletes (www.adidas-group.com). On August 18, 1949 the company registered the name of Adidas AG from “Adi” (a nickname for Adolf) and “Das” (from “Dassler”) starting again after the brothers split up in 1947. After the brothers split up, Rudolf Dassler created the firm Puma and they became big business rivals in their own home town.

In the surroundings of this Adidas retail store, we can find different competence from another retail stores such as Nike, Puma, and a bunch of different sportswear retailer (Foot Locker, Finish Line, and Modell’s)

In this report I will analyse how Adidas is influenced by its contemporary business environment. Furthermore, I will portray how Adidas if influenced further by several other factors including social, economic, technological,political and legal factors throughout the company. Adidas is a

The Adidas Group strives to be the global leader in sporting goods industry with brands built on a passion for sports and sporting lifestyle.