Adidas is the largest sportswear manufacturer in Germany and Europe, founded in 1949 and headquartered in Bavaria, Germany. It designs and manufactures sports clothing and accessories. Adidas focuses on performance, passion, integrity, and diversity as its core values and considers itself authentic, passionate, innovative, inspirational, and committed with the brand attitude of "Impossible is Nothing." Key markets include North America, Russia, and Greater China. Strategic pillars center around gaining market share in key categories and expanding lifestyle brands. Competitors include Nike, Puma, and Gucci.

1. • Prepared by Fazal Haq
1

2. • Adidas is the largest sportswear manufacturer in Germany
and Europe and the second biggest sportswear manufacturer
in the world.
• A German multinational corporation that designs and
manufactures sports clothing and accessories.
• Founded: August 18, 1949
• Headquarters: Bavaria, Germany
2

3. FOUNDER
• Adolf "Adi" Dassler
• His brother Rudolf returned
to Herzogenaurach to join
his younger brother's
business
3

4. 4
CORE VALUE
• Performance
Sport is the foundation for all we do and executional excellence.
• Passion
Passion is at the heart of our company and continuously moving forward, innovating, and
improving.
• Integrity
The company are honest, open, ethical, and fair. People trust us to adhere to our word.
• Diversity
The company takes people with different ideas, strengths, interests, and cultural backgrounds to
make our company succeed. We encourage healthy debate and differences of opinion.
BRAND VALUE
• Authentic
• Passionate
• Innovation
• Inspirational
• Committed
• Honest
BRAND ATTITUDE
Impossible is Nothing
KEY MARKETS
• North America
• Russia
• Greater China
KEY STRATEGIC PILLARS
• Gaining sales and market share with key
growth categories such as Running and
Basketball within Adidas Sport
Performance.
• Expanding Adidas Sport Style in the fast-
fashion business.
• Maintaining adidas Originals’ strong
momentum to serve the needs of the
fashion-driven lifestyle consumer.

5. Target Markets
• Sports personalities involved in various sporting activities such as
soccer, rugby, athletics and basketball.
• Young people
• Male and Female
• Ages between of 10 to 30
5

6. Competitors
Competitors of Adidas include;
• Nike
• Gucci
• Puma
• Lacoste

7. Adidas GLOBAL SHARES

9. 9
STRENGTH
• Financial strength
• Effective marketing strategy, distribution mix,
diverse brand portfolio and Supply Chain
Management and Innovations
• Brand Value
• The company has worldwide presence and is
internationally recognized.
WEAKNESS
• High dependency of raw material prices
• Low margin
• Poor share price in U.S. Market
• Customers have high brand switching
OPPORTUNITIES
• Investments focused on highest potential
markets and channels
• Technological innovations
• Tie-up with emerging sports
teams/clubs/players internationally
• Brand building by setting up sports academies
THREATHS
• Price fluctuation in raw materials
• Unstable currencies exchange
• Other brands offer more styles and
varieties
• Pirated/fake imitations affect brand
image

10. Strategies
 Creating shareholder value
 Investments focused on highest-potential markets and channels
 Creating a flexible supply chain
 Leading through innovation
 Develop a team grounded in company heritage
 Becoming a sustainable company
 Brand’s Broad and Unique Product Portfolio
 Brand Extension Strategies
10
Adidas Core Competencies
– Technology
– Customer focus
– Brand recognition
– Supply chain
– Collaboratively competitive

11. 11
• Nike has an overall better selection of gym shoes, and basketball shoes
compare to than Adidas.
• Nike have wider variation of types of shoes which ranges anywhere from boots,
to basketball shoes.
• Nike also are endorsed by higher profile athletes than Adidas does.
• Nike has players like Kobe, and Cristiano Ronaldo while Addidas has Kevin
Garnett, who is passed his prime.
• Nike's shoes are also more stylish, and well known.
• Nike have higher modification function for customers on design and technology

12. 12
• Adidas should improve its product lines substantially as variation in products
could lead to better and improved sales which form a major objective of any
business organization.
• Adidas should concern more on innovation along with strategic partnership,
Now, Adidas signed a contract with Samsung to produce a shoe + phone
promotional campaign. In this strategic partnership, both the companies
developed a phone to be used with shoes during training
• Improve brand association of professionals with Adidas is that it has a culture
of technology and has a history of achieving a strong position in the minds of
target customers.
• Adidas should work towards improving market share and being at par with Nike
which is currently the world leader in Athletic footwear. Adidas should focus on
roping in more celebrities to promote their products

13. 13
Strategies Map

14. 14
2012 2013 2014
Return on Equity(NI/Equity) 12% 12% 12% Measures profitability a company is for the owner of the investment, profitably a company employs its equity. - Accounting, Finance, Management
Net income attributable to shareholders
as a percentage of net sales
Earning per share increased 10%-15% 12%-16% 14%-18% Indicator of the profitability of the company - Accounting, Finance, Management
Operating Margin 8% 9% 10% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing - Accounting, Production, Management
Operating Expenses 40% 40% 40% From using ABC costing,ABM,EmployeeLeadershipProgram 2,500M Accounting, Management
Net borrowing/EBITDA below 2 below 2 below 2 Strong balance sheet increased flexibility to the best interest of sharesholders - Accounting, Finance, Management
Revenue increased 11% 11% 12% From using ABC costing,ABM,BetterSupplyChainProcess,Sales,Marketing,OnlineRetailer 1,500M Accounting, Management,Sales,CustomerService,R&D
Gross Margin 47.50% 48.0%-48.5% 49.00% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing 2,000M Accounting, Management,Production,Purchasing
Increase Share Value Share Price increased above standard 10% 12% 15% Better performance of the company - Accounting, Finance, Management
New customers % increase new customers through registration 10% 15% 20% Promotions/ Advertisment/ Marketing/ New products 200M Marketing, R&D
Customer retention % repeated sales through database 72% 75% 78% Promotions/ Advertisment/New products, good quality,reasonable price 100M R&D, Marketing, Sales Department
Customer satisfaction
% repeated sales through database and
surverys
95% 95% 95% Value customer project/ Surveys 25-50M HR, Sales Department
Increase demand
% increase sales: both new customers and old
customers
60% 40% 60% Advertisment/ Marketing, more outlets/ New products 200M R&D, marketing
Reduce standard lead times for footwear and apparel Standard lead times 60 days < 60 days < 60 days
Manufacturing flow mangement process/ Customer service management/ Warehousing management/ Physical
distribution/Increase proximity to sourcing countries 2,000M
Production manager, logistics, customer service, regional
manager
Product development, creation & innovation
1. Increased number of new ideas % increase in R&D expenses 12% 13% 14%
2. Improved quality of ideas No. of successful product launch 17 19 21
Create leadership excellence % global engagement survey 80% 83% 86% Leadership excellence programme / Best-in-class tools 2,300 Senior management
Enabling employee to reach their personal best Annual training hours by employee (in hours) 18 19 20 Targeted development programmes 1,200 All management levels
Employee satisfaction Turn over rate 1% 1% 0%
Rewards programme / Global Salary Management System / Bonus programme, Profit participation programme, Long-term
incentive programmes, Champion Bonus
1,900 HR Department
Creating an attractive work environment Average length of service (in years) 5 6 7 Work-life Integration Programme 700 HR Department
Continuing to be the employer of choice Retaining of Top talent employees Recruitment activities / Employee referral Programme 850 HR Department
Number or new system support 2 3 6 Learning Management System / Ask the Management / e-Learning 700 HR Department
Number of employees 42,541 46,824 46,306 Recriutment process N/A HR Department
Reorganization of culture % product defection 25% 20% 15% Internal Training Programmes / Employee engagement surveys 2,300 Production and HR Department
Increase the propotion of women in management % Management position 28% 32% 35% Mixed leadership team / Work-life integration /Gender balance 2,300 HR Department
7,118MReduce product and supply chain cost Production manager, plant manager
N/A
Creating long-term value 20%-40% 20%-40%
Sustainable company
Revenue growth
% change in cost of sales 11.30% -7.00% -10%
Production creation system/Quality control management 130M Research & Develop manager/ Quality control manager
Cycle process system/ Supply chain and inventory management
Customers
Perspective
Champion
Learn & Growth
Perspective
Targets
Perspectives Objectives Measurements Programs Budget (€)
Online communication platforms to drive employee engagement and learning
Internal Process
Perspective
20%-40% From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing 2,600M-5,200M Accounting, Finance, Management
Financial
Perspective
Balance Scorecard
2
1
3
4Financial Perspective
Customer Perspective
Internal Process Perspective
Learning and Growth Perspective

15. 15
Balance Scorecard
Learning and Growth Perspective

16. Balance Scorecard
Internal Process Perspective

17. 17
Balance Scorecard
Customer Perspective

18. Balance Scorecard
Financial Perspective

19. Conclusion
Adidas has grown 10 times every 10 years. This is due to their main marketing
strategies and uniqueness from day one.
Despite a changing marketplace for athletic footwear, Adidas wants to expand
their product lines and marketing reach to become a more powerful global brand.
The lesson from Adidas to new and old companies is very simple-”Adidas is all in”.

20. 20