Adidas is a German multinational corporation that design and manufacture sports
clothing and accessories.
Industry type: Apparel
Founded in 1924
Founder: Adolf Dassler
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
Targets the youth
The consumer is from upper-middle class
The consumer is working & sports lover
The consumer is fashionable and stylish
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
Focus on the global major and sport lifestyle markets
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
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,
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.
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
Supervision of the manufacture of apparel
Footwear and accessories for the adidas.
World Wide presence in 200 countries
Long list of Product Line
- Basketball etc.
Focus on performance development and
Sponsorship to various sports and events like
Olympics, Streetball, Soccer, Tennis, etc.
Brand reputation in achieving sports
Largest market share in Europe
Limited exposure to U.S market
Limited budget allocation to advertisement
Few influence athletes in Brand Ambassador
Poor Ad agency
Poor customer service
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
Adidas larger competitor Nike
has a grater market share and
having a big budget in marketing
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
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.