Adidas: Will Restructuring Its Business Lineup Allow It to Catch Nike?

In addition, these companies are able to easily compete in the sports apparel market because the barriers to entry are low. On the other hand, many companies should think twice before entering the market. One reason is the large capital costs that are required to meet consumer demand in the market. In addition to large capital costs, some of the largest companies have gained customer loyalty based on their strong marketing skills. For example, Under Armour, Nike, Adidas, Reebok, ASICS, make new entrants into this industry much more difficult to compete with when these companies have a big share in the market already. According to Exhibit 4 in the textbook, it shows the major competitors and brands in 2013. Nonetheless, competition is intense in the sports industry market but, the high levels of product differentiation can also act as a barrier to entry for many companies because company’s need a high level of marketing to market their brand to consumers.

Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of

In the last 30 years innovation and product development in sports has seen consistent growth even with the micro and macro-economic differences. One of the reasons this happened is because most sports enterprises have smarted up their way of product development through paying close attention to the relationship between sports consumers and product development.

6). This strategy is a major component of Nike’s business strategic level plan. In applying this strategy, Nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes. Still on product differentiation, Nike focuses more on research and development at a greater level. These unique features to Nike, have transformed the competition levels in this competitive industry, leading to a trend of a paradigm shift in the market. Most consumers opt for Nike branded sports products and apparels, at the expense of the other brand names.

Nike, Adidas and Under Armour are the largest brands in the athletic/sportswear monopolistic market. As of 2015, Nike’s revenue was $30.1 billion, the revenue of Adidas was $4.57 billion, while Under Armour’s revenue was $3.96 billion. Though all of the companies are large, Nike has a little more than 60% of the brand share dollars as compared to Adidas’ 11% and Under Armour’s 7% (Figure 1). Nike has some major strategies that

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).

Adolf Dassler is the founder of Adidas. Adolf started in his mother's wash room. In 1924 him and his brother established a shoe factory and called it Dassler Brothers Shoe Factory, from there he went on with his journey to provide athletes the best shoe. The brothers split and his brother made the shoe company Puma. Adidas is named after Adolf because his nickname is Adi and they used the first three letters of his last name which were das. Adidas stands for "All Day I Dream about Sports". Adidas is the largest manufacturer of sportswear in Europe. They are second in the world after Nike. Adidas also owns Reebok. Their first piece of apparel they sold was a tracksuit. Adidas has been around for sixty eight years. They became popular because in 2014 they were falling in sales but then they came out with new shoes that boosted sales. The new style of shoe had many purposes as they used to be basketball shoes but now are just normal regular

Adidas was founded by Adi Dassler on August 18, 1949 in Herzogenaurach, Germany. Adidas has been in business longer than Nike, they have had their logo since the inception; thus, the three stripes on the side of their shoes. In Spring of 2015, they came out with their new strategic business plan called, “Creating the New”. The focus was on Cities, Speed, and Open Source. According to Herbert Hainer, the CEO at that time stated, “The company is working every day to inspire and enable people to harness the power of sport in their lives (Adidas Group, n.d.). Adidas current competitive strategy is not the same as Nike’s competitive strategy. In October 2016, Kasper Rorsted became Adidas’ current CEO. He believes health and fitness will continue to become a lifestyle not a fad. Furthermore, he wants to expound the three clear strategic choices: Speed, Cities, and Open Source.” They are more focused on the broad target market, a low-cost provider strategy. In March 2017, he updated the focus for Adidas to include “Corporate Culture, Digital, One Adidas, North America and Portfolio.” (Adidas Group, n.d.).

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

Starting out post World War II, Adidas was an important provider of the national German soccer team. Later, Adidas they changed their marketing approach to expand their products to “fringe sports,” such as high jumping and bobsledding. By the 1990s, Adidas secured their global sales on soccer footwear. In 1998, Adidas began to focus on the U.S market. By sponsoring some famous basketball players such as Kobe Bryant and by doing so Adidas was able to gain doubled market share.

On a like-for-like basis, Reebok segment sales declined by 5% in 2007. At TaylorMade-Adidas Golf, currency-neutral revenues increased 1%, negatively impacted by the divestiture of the Greg Norman Collection wholesale business. On a like-for-like basis, TaylorMade-Adidas Golf sales increased 9%. Sales in the HQ/Consolidation segment decreased by 60% on a currency-neutral basis, mainly due to the expiration of the Salomon footwear sourcing cooperation agreement. Currency translation effects negatively impacted sales in all segments in euro terms. Adidas sales increased 7% to € 7.113 billion in 2007 from € 6.626 billion in 2006. Sales at Reebok decreased 6% to € 2.333 billion versus € 2.473 billion in the prior year. TaylorMade-Adidas Golf sales declined 6% to € 804 million in 2007 from € 856 million in 2006. HQ/Consolidation sales decreased 62% to € 48 million from € 129 million in the prior year. (Adidas-group factsheet 2007).The merger and acquisition has gone beyond expectation. Although there were reports of declining sales of Reebok in the North America in the early years of its acquisition but this was due to the currency-neutral sales in the Reebok which is now associated to the turnover. But in later years, beginning 2010 despite the economic turmoil in US and Europe the Adidas Group together with other subsidiary products continues to boost its sales.Such increases are

Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.

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

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.

Adidas is the second largest sportswear and apparels manufacturer (Dogiamis & Vijayashanker, 2009). By far, Adidas holds a market share of 22% (Dogiamis & Vijayashanker, 2009). Adidas had also registered the infamous ‘3 stripes’ as its trademark (Berntson, Jarnemo & Philipson, 2006). The founders of Adidas, Adolf and Rudolf Dassler had the vision of providing athletes with the best suited pair of shoes for their respective sports (Dogiamis & Vijayashanker, 2009). In efforts of achieving that, Adidas is had used the strategy of collaborating with important athletes to gain their insights on the products offered (Berntson, Jarnemo & Philipson, 2006). This contributes to the fact that Adidas had earned