3. Introduction
• adidas AG is one of the biggest “players” in apparel
industry
• impressed how it became such a huge company
• new technologies, research and development
• constant improvement
• Adidas e-Commerce (future of shopping)
4. adidas AG Project
• History and creation
• Products
• Mission, vision and slogan
SWOT Analysis
PEST Analysis
Porter’s method
RESEARCH part
5. History and creation
•The company was founded in Germany in 1924 by the
brothers Adolf and Rudolf Dassler
•They first named the brand "Dassler Shoes"
•Rudolf decides to start his own company named Puma
6. From then on Adidas grew exponentially:
•1996: 6,000 sponsored Olympic athletes from 33 countries win
220 medals, including 70 gold (apparel sales increase 50%)
•1999: Salomon company is bought by Adidas and it's skates
take off with high double-digit growth
•2000: the European Soccer Championship EURO 2000 and
the Olympic Summer Games, where swimmer Ian Thorpe takes
three gold medals, contribute to the company's success
2006: Adidas closes the Reebok , which marks a new chapter
in the history of the Group.
7. Mission, vision - slogan
MISSION STATEMENT
"Our mission is to become the best sports brand in the world. To that
end, we will never equate quantity with quality. Our founder Adi Dassler
was passionate about sports. For Adi, the athlete came first. He gave
those on the field, the court and the track the unexpected and the little
differences that made them more comfortable and improved
performance. This is our legacy. This is what the brand stands for. This
will never change."
VISION STATEMENT
Vision statement is to make Adidas products as high as sky and as
wise as an owl!
COMPANY SLOGAN
"Impossible is Nothing"
9. e-Commerce analysis
- extended use of Internet since 1990’s
nowdays companies without web presentation
reduce their business to the lowest level
e-commerce consists of the buying and selling of products or services
over electronic systems such as the Internet and other computer networks.
Amount of trade conducted electronically has grown extraordinarily with
widespread Internet usage.
Innovations in electronic funds transfer, supply chain management, Internet
marketing, and online transaction processing
10. 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 marketing
strategies on the Internet
Benefits of e-Commerce Barriers of e-Commerce
- Market research (with data they were - technological barrier ranging from
able to exploit new marketing campaigns infrastructure to security
and promotions )
gap in its e-business strategy (online stores
- Consumer buying behaviors (able to available in only restricted regions such as
analyze and monitor buying behaviors, United States, Canada, Germany, France,
produce innovative design and improve Netherlands and United Kingdom
research)
11. 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 to
expand their customer base to aaglobal level without considerable time or
expand their customer base to global level without considerable time or
expense.
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 operation
are 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 fund
transfer 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 compare
with conventional offline system.
with conventional offline system.
12. 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 person
than purchasing ititonline
than purchasing online
• •High transportation costs: sometimes transportation costs increases the
High transportation costs: sometimes transportation costs increases the
product 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 not
enough.
enough.
• •No direct communication: there is no direct interaction between the customer
No direct communication: there is no direct interaction between the customer
and 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.
13. 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 comfortable
buying 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 natural
to 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 of
promotion
promotion
• •Industry growth: Adidas industry is growing more and is expected to continue
Industry growth: Adidas industry is growing more and is expected to continue
at 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 benefit
more from this expansion.
more from this expansion.
14. SWOT analysis
Threats
Threats
• •Competition: the e-commerce implementation costs are relatively cheap and
Competition: the e-commerce implementation costs are relatively cheap and
allow 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 negative
effect 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 sold
worldwide 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 personal
information 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 the
buyer and seller reside in the same state.
buyer and seller reside in the same state.
15. PEST analysis
Political Economical
Law changes regarding products - Most businesses online and off realize the
effect of “surviving the downturn” like
Social Effects credit crunch, recession
Social awareness of the world’s - Monitoring cash flow and more
environmental needs affects the importantly profit is crucial for success
products that many people buy. Where
possible, they should advertise in the
online social networks that are attractive Technological
to 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
16. Porter’s method
• Barriers to Entry
• Bargaining Power of Buyers
• Bargaining Power of Suppliers
• Threats of Substitutes
• Rivalry among Existing Competitors
17. Research
• Created using Google Spreadsheet
• Easily distributed to young people <30 years
• 3-4 minutes to fill the data
1. Choose your favorite brand: Nike, Adidas, Puma, Reebok, Oasics, Converse
2. 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 world
12. Do you agree that e-commerce as commercial means has its advantage over the
traditional commercial method
13. How does the future of e-commerce (for you) look?
18. 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, new
designs, and attractiveness to young people. This survey shows that
basically Adidas and Nike are two strongest brands.
19. 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 more
in promoting online shopping and e-Commerce and attracting young
customers to use it.
20. 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 some
product online. Adidas can use this for its further promotion. It shows
the increased interest of people who want to buy something online
compared to previous years.
21. Research
And one of the most interesting questions and result found out in Q5
states that 82% of people prefer to buy products in person than
online. Natural answer you would say? Yes, but in modern world
even the 14% who prefer buying online is amazing. It shows that
people are starting to change their mind about e-Commerce.
22. Research
At the same time in Q6, 46% of people consider that online
shopping is easier than buying in person. This is a perfect
opportunity and data to use for Adidas promotion.
23. 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 speak
about internet shopping security and protection.
24. Research
This question shows us that nearly 85% of people care about visual
looks 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 about
that. This is why Adidas should invest more in this area, design,
visual attraction and functionalities, because this is important for
customers.
25. 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 and
its 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.
26. Research
How 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 don't 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 of
Security 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 product
services is increasing.
services is increasing.
27. Conclusion
e-Commerce web site successfully portrays Adidas's product portfolio
in an interactive and informational manner.
GREAT transformation from “small player” in 1990’s to number two
position 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 !
