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Adidas Strategic Management

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  1. 1. Adidas Strategic Management Presented By: Rishi Raj(15201018) Sadananda Tadingi(15201022) Netra Majhi(15201036)
  2. 2. Company Profile • Adidas is a German multinational corporation that design and manufacture sports clothing and accessories. • Industry type: Apparel • Founded in 1924 • Founder: Adolf Dassler • Products: Footwear Sportswear Sports-equipment • It is the largest sportswear manufacture in Germany and Europe and second biggest sportswear manufacture in the world. • In 2005 Adidas acquired British rival Reebok
  3. 3. Targeting • Targets the youth • The consumer is from upper-middle class • The consumer is working & sports lover • The consumer is fashionable and stylish
  4. 4. Positioning Strategy • The shoes are comfortable as compared to any other in the segment • The apparels are stylish & designed to suit the consumer need • The eye gear and the perfumes are serving the niche segment
  5. 5. Product Line • Footwear • Clothing • Accessories
  6. 6. Adidas Strategies • Focus on the global major and sport lifestyle markets • Women’s market • Position as “Premium Brand” • Three different categories of adidas strategies: adidas products divisions, distribution, and pricing strategies • In August 1998, following the merger of Adidas and Salomon, the then named Adidas-Salomon Supply Chain
  7. 7. Supply Chain Structure • Outsourced most of its production work with more than 1,200 independent factories from around the world that manufacture products in 63 countries • The most dominant sourcing locations are: China, India, Indonesia, Vietnam. • Supply chain is global and multi-layered, with many different types of Business partners, some of who are directly contracted factories, and others who are not.
  8. 8. Different Sourcing Relationships • Direct Sourcing model Direct sourcing model Direct contractual relationships with its core suppliers who are centrally supervised by Global Operations. • Global Operations manages Product development Commercialisation Distribution Supervision of the manufacture of apparel Footwear and accessories for the adidas.
  9. 9. SWOT Analysis STRENGHT • World Wide presence in 200 countries • Long list of Product Line - Football - Running - Basketball etc. • Focus on performance development and technology development • Sponsorship to various sports and events like Olympics, Streetball, Soccer, Tennis, etc. • Brand reputation in achieving sports performance products • Largest market share in Europe WEAKNESS • Limited exposure to U.S market • Limited budget allocation to advertisement • Few influence athletes in Brand Ambassador portfolio • Poor Ad agency • Poor customer service
  10. 10. Cont… OPPORTUNITIES • Has a great opportunity to expand international market - Retail outlet - E- commerce • Positive and increasing market trends can increase through the effective advertising (For Technology driven products) • Increase endorsement programs • Tie up with local market player to boost the sale-volume THREATS • Adidas larger competitor Nike has a grater market share and having a big budget in marketing activity • The newly born several brands like New Balance, CAT, Gap has increase their advertising budget in recent years. • Amount of competitors increasing day by day • Global Economic crisis
  11. 11. Solutions • IT integration being the ultimate solution to most of the challenges. • Three basic portals have been created: one for consumers, one for business customers and another for employees. • Launching mi adidas focusing on mass customisation. • Carefully selection & training of the suppliers according to the change. • Conducting frequent audits of the suppliers.
  12. 12. Thank You…