Introduction• adidas AG is one of the biggest “players” in apparelindustry• impressed how it became such a huge company• new technologies, research and development• constant improvement• Adidas e-Commerce (future of shopping)
adidas AG Project• History and creation• Products• Mission, vision and slogan SWOT Analysis PEST Analysis Porter’s method RESEARCH part
History and creation•The company was founded in Germany in 1924 by thebrothers Adolf and Rudolf Dassler•They first named the brand "Dassler Shoes"•Rudolf decides to start his own company named Puma
From then on Adidas grew exponentially:•1996: 6,000 sponsored Olympic athletes from 33 countries win220 medals, including 70 gold (apparel sales increase 50%)•1999: Salomon company is bought by Adidas and its skatestake off with high double-digit growth•2000: the European Soccer Championship EURO 2000 andthe Olympic Summer Games, where swimmer Ian Thorpe takesthree gold medals, contribute to the companys success2006: Adidas closes the Reebok , which marks a new chapterin the history of the Group.
Mission, vision - sloganMISSION STATEMENT"Our mission is to become the best sports brand in the world. To thatend, we will never equate quantity with quality. Our founder Adi Dasslerwas passionate about sports. For Adi, the athlete came first. He gavethose on the field, the court and the track the unexpected and the littledifferences that made them more comfortable and improvedperformance. This is our legacy. This is what the brand stands for. Thiswill never change."VISION STATEMENTVision statement is to make Adidas products as high as sky and aswise as an owl!COMPANY SLOGAN"Impossible is Nothing"
e-Commerce analysis- extended use of Internet since 1990’s nowdays companies without web presentation reduce their business to the lowest levele-commerce consists of the buying and selling of products or servicesover electronic systems such as the Internet and other computer networks.Amount of trade conducted electronically has grown extraordinarily withwidespread Internet usage.Innovations in electronic funds transfer, supply chain management, Internetmarketing, and online transaction processing
adidas AG e-Commerce- Launched their web site in spring of 2000. which was later integrated with e-commerce- to maximize their market share they invested in branding and marketingstrategies on the InternetBenefits of e-Commerce Barriers of e-Commerce- Market research (with data they were - technological barrier ranging fromable to exploit new marketing campaigns infrastructure to securityand promotions ) gap in its e-business strategy (online stores- Consumer buying behaviors (able to available in only restricted regions such asanalyze and monitor buying behaviors, United States, Canada, Germany, France,produce innovative design and improve Netherlands and United Kingdomresearch)
SWOT analysis Strengths Strengths••Availability: :24 hrs aaday, 77days in aaweek business isisin operation. Availability 24 hrs day, days in week business in operation.• •Ability to compete with other companies global and locally: allows adidas to Ability to compete with other companies global and locally: allows adidas toexpand their customer base to aaglobal level without considerable time or expand their customer base to global level without considerable time orexpense. expense.• •Low overhead cost and low barrier to entry: startup costs for retail operation Low overhead cost and low barrier to entry: startup costs for retail operationare aafraction of the costs of starting aatraditional company division. are fraction of the costs of starting traditional company division.•Advantage of online payments: financial transaction through electronic fund •Advantage of online payments: financial transaction through electronic fundtransfer is very fast and can be done from any part of the world. transfer is very fast and can be done from any part of the world.• •Advertising Adidas e-Commerce systems online is cost effective in compare Advertising Adidas e-Commerce systems online is cost effective in comparewith conventional offline system. with conventional offline system.
SWOT analysis Weaknesses Weaknesses••Personal product purchase: aalot of customers prefer to buy products in person Personal product purchase: lot of customers prefer to buy products in personthan purchasing ititonline than purchasing online• •High transportation costs: sometimes transportation costs increases the High transportation costs: sometimes transportation costs increases theproduct cost product cost• •Number of potential buyers who can purchase Adidas products is still not Number of potential buyers who can purchase Adidas products is still notenough. enough.• •No direct communication: there is no direct interaction between the customer No direct communication: there is no direct interaction between the customerand the seller. Therefore, the scope of convincing the customer does not exist. and the seller. Therefore, the scope of convincing the customer does not exist.
SWOT analysis Opportunities Opportunities• •Number of internet users is increasing in rapid way. Number of internet users is increasing in rapid way.• •The opinion of people is changing and nowadays they feel more comfortable The opinion of people is changing and nowadays they feel more comfortablebuying products online than few years ago buying products online than few years ago• •Other companies are already using e-commerce which makes ititmore natural Other companies are already using e-commerce which makes more naturalto people, and makes them more confident in this type of purchasing products. to people, and makes them more confident in this type of purchasing products.• •Online marketing is starting to have more effect than any other way of Online marketing is starting to have more effect than any other way ofpromotion promotion• •Industry growth: Adidas industry is growing more and is expected to continue Industry growth: Adidas industry is growing more and is expected to continueat high rates; having an online store allows Adidas to be in aaposition to benefit at high rates; having an online store allows Adidas to be in position to benefitmore from this expansion. more from this expansion.
SWOT analysis Threats Threats• •Competition: the e-commerce implementation costs are relatively cheap and Competition: the e-commerce implementation costs are relatively cheap andallow easy market entry to any new company interested in selling their products. allow easy market entry to any new company interested in selling their products.• •Innovation: future innovations, products and technologies can have negative Innovation: future innovations, products and technologies can have negativeeffect on e-commerce business effect on e-commerce business• •Frauds: Fake and copied products of Original Adidas brand can be sold Frauds: Fake and copied products of Original Adidas brand can be soldworldwide by different retailers. worldwide by different retailers. educating visitors - -“buying in only official adidas stores !” educating visitors “buying in only official adidas stores !”• •Technological security of the site can always be aathreat Technological security of the site can always be threat• •Customer privacy issues: some consumers prefer not to give any personal Customer privacy issues: some consumers prefer not to give any personalinformation out over the Internet information out over the Internet• •Future Legislation: internet sales only have tax applied to the purchase ififthe Future Legislation: internet sales only have tax applied to the purchase thebuyer and seller reside in the same state. buyer and seller reside in the same state.
PEST analysisPolitical EconomicalLaw changes regarding products - Most businesses online and off realize the effect of “surviving the downturn” likeSocial Effects credit crunch, recessionSocial awareness of the world’s - Monitoring cash flow and moreenvironmental needs affects the importantly profit is crucial for successproducts that many people buy. Wherepossible, they should advertise in theonline social networks that are attractive Technologicalto their target audience. Technology that was once expensive can now be very cheap. That’s why Adidas should invest more in promotion over internet and in it’s e-Commerce
Porter’s method• Barriers to Entry• Bargaining Power of Buyers• Bargaining Power of Suppliers• Threats of Substitutes• Rivalry among Existing Competitors
Research• Created using Google Spreadsheet• Easily distributed to young people <30 years• 3-4 minutes to fill the data1. Choose your favorite brand: Nike, Adidas, Puma, Reebok, Oasics, Converse2. Are you familiar with the term e-commerce?3. Have you ever used ecommerce?4. Have you bought product online?5. Do you prefer buying products online or in person?6. Is buying online easier than shopping?7. Do you think online shopping is secure?8. Do you easily give you credit card number when shopping online?9. Do you visit only official brand stores?10. Do you rate store according to its visual looks ( design, esthetics etc)11. Do you think the application of e- commerce has increased over years in the world12. Do you agree that e-commerce as commercial means has its advantage over the traditional commercial method13. How does the future of e-commerce (for you) look?
Research The Q1 results show that there is a “tight” fight between Adidas and Nike, where in our case Nike wins with 36% over Adidas’s 31%.This result shows that Adidas still has to work on its promotion, newdesigns, and attractiveness to young people. This survey shows thatbasically Adidas and Nike are two strongest brands.
Research 81% of visitors have heard about the term e-Commerce while at the same time only 55% of them have actually used it.From this information we can conclude that Adidas should invest morein promoting online shopping and e-Commerce and attracting youngcustomers to use it.
Research Q4 shows us that there is a larger amount of people who have actually bought product online. 67% is way above the expected and real results.But this shows that majority of internet users have purchased someproduct online. Adidas can use this for its further promotion. It showsthe increased interest of people who want to buy something onlinecompared to previous years.
ResearchAnd one of the most interesting questions and result found out in Q5states that 82% of people prefer to buy products in person thanonline. Natural answer you would say? Yes, but in modern worldeven the 14% who prefer buying online is amazing. It shows thatpeople are starting to change their mind about e-Commerce.
ResearchAt the same time in Q6, 46% of people consider that onlineshopping is easier than buying in person. This is a perfectopportunity and data to use for Adidas promotion.
Research 80% of people don’t give out their credit card numbers easily, Q7 the results show that people are still not certain about security of online shopping. Only 42% of people think it’s secure, while 36% consider it non-secure.Adidas should invest more time, money and people who will speakabout internet shopping security and protection.
ResearchThis question shows us that nearly 85% of people care about visuallooks of the online store they are purchasing from. 53% of them rate it,and 32% sometimes rate online stores, but only 14% don’t care aboutthat. This is why Adidas should invest more in this area, design,visual attraction and functionalities, because this is important forcustomers.
Research We wanted to know what is opinion of people about past and future of any e- Commerce, and what can we expect.87% of survey visitors answered that application of e-Commerce andits popularization has increased over years. Only 1% has said no. 66% of visitors stated that e-Commerce as a commercial mean, has its advantage over traditional commercial methods.
ResearchHow does the future of e-commerce (for you) look? I think every small It looks really bright with Online shops for business development of new everything, lazy people, could expand technologies and new who buying everything to a bigger secure system for they need seating on a market with transactions. chair and not going on-line outside.... I dont like it! commerce In my opinion e- commerce is going to be ...the future of e- E-commerce is booming and will E-commerce is booming and will the most popular way of commerce is continue to boom, continue to boom, shopping.. very bright as it saves a lot ofSecurity will be the problem, Security will be the problem, ...the main disadvantage is that time and money.but the trust in online but the trust in online you can not try productservices is increasing. services is increasing.
Conclusione-Commerce web site successfully portrays Adidass product portfolioin an interactive and informational manner.GREAT transformation from “small player” in 1990’s to number twoposition in footwear and apparel industry !!!Increased emphasis on customization and differentiation of products Adidas is not slowing down with their The future should continuous web site innovations setting prove to be a high standard interesting and full of developments !