The Success Of Adidas

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1. Introduction 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. 2. Research Question Has Adidas’ planned production increase benefited the company? 3. Statement of Objective Adidas is focusing primarily on growth, by growing in size Adidas will have the chance to be the market…show more content… As shown in the two pie charts above, The Adidas’ global market share is at 35% in 2016, increasing more than double from 2010. This fact states that Adidas has started to dominate the footwear industry and the sportswear industry. 4.2 Financial Consideration The question of whether Adidas has planned production increase benefited the company should be considered in relation of the financial situation of the business. Appendix 1 shows a balance sheet and a cash flow chart that will be used to calculate that financial ratios that are used to assess the finical growth of Adidas as a leading sports wear company. 4.2.1 Financial…show more content…
During the first months of 2016, Adidas has stated that it will increase its projected currency adjusted sales growth from 10% to 12% to 15%. Additionally, Adidas is confident that the net profit will surpass their previous percentages by at least 10 percent. During the first quarter of 2016, Adidas’ revenue increased 17%. The president of Adidas, Mark King, stated that the reason why the Adidas brand is resonating again is because of footwear sales that skyrocketed 54% (Kell, 2016). There are many different categories that helped to achieve this great percentage, but the category that provided the most help is the running category, with the help of the Ultra Boost, NMD and the Boost technology, which is responsible for more than 30% of the 54%

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