The document provides an internal analysis of Adidas, outlining its vision and mission statements along with historical milestones. It details the company's strategic challenges, including losing market share and difficulty adapting to market changes, proposing options for improvement. Recommendations for Adidas include focusing on the U.S. market and enhancing customer service while maintaining a long-term perspective on competition.

1. Nash Consulting
David Hudson Jane Jung Marco San Filippo Alex Sugano
Adidas

3. Internal Analysis

4. Company Culture
Vision Statement: “Our passion for sport makes the world a better place.”
Mission Statement: “The adidas Group strives to be the global leader in the sporting
goods industry with brands built on a passion for sports and a sporting lifestyle. We are
committed to continuously strengthening our brands and products to improve our
competitive position.”
Objectives: Be the #1 sports company in the world.

5. Company History
● Dassler’s athletes won golds in 1928 and 1936
● 1949 - Adidas founded by Adolf Dassler after a feud with his brother, Puma founder Rudolph Dassler.
● 1954 - German National Team won the world cup wearing the first ever cleats, making Adi Dassler- the
company’s founder - a “household name.” (Adidas History)
● 1967 - the famous track suit (Athletes, then hip hop stars)
● 1978 - Adolf Dassler dies, son takes over as innovator and marketing guru
● 2006 - Adidas acquires Reebok
● 2011 - acquires Five Ten and TaylorMade

6. Current Strategy
Diverse Brand Portfolio
Focus on High Potential Markets and Channels
Creating a Flexible Supply Chain
Leading Through Innovation
Sustainability
International Expansion

7. Financials

8. Adidas

9. Nike

10. Under Armour

11. U.S. Market Share
Nike
Under Armour
Adidas

12. External Analysis

13. Macro: PEST Analysis

14. .
Macro: PEST Analysis
- Growing popularity in e-commerce
and Internet
- Increase in online purchase
- Unemployment rate
- Global recession
Decrease in demand

15. Porter’s 5 Forces

16. LOW - MEDIUM
● Economies of scale
● Strong distribution
network
● Loyal customers
● Low capital
requirement
LOW
● Abundant natural
resources
● High competition
● Diverse & broad
distribution channel
LOW
● Substitutes - inferior,
lower quality
● Limited alternatives
Porter’s 5 Forces cont.

17. HIGH
● Price < quality
● Low customer
switching cost
VERY HIGH
● Competitive industry
● High competition
among sports
clothing brands
● Rising e-commerce
and Internet
Porter’s 5 Forces cont.

18. Competitor Analysis: Nike
Objectives Strategy
Predictions

19. Competitor Analysis: Under Armour
Objectives Strategy
Predictions

20. Segmentation Analysis: A cross tabulation
between Sports & Countries

21. The 3 Main Challenges Adidas has been facing
1. Losing Market Share in the shoes and apparel industry.
2. Slowly losing popularity in the sports they dominate such as Soccer, Tennis, Golf.
3. Failing to adapt the company image/culture to an ever changing environment.
All issues stem from heavy competition

22. Challenge 1: Slowly giving up shares in their product market
Strategic Option 1: Hit the US hard with an American image campaign
Pros: Americans can identify with the brand more easily
Cons: Capital expenses for advertising and domestic brick and mortar
Strategic Option 2: Be more active in the US dominated sport segments
Pros: Natural connection between the brand and professional grade
equipment
Cons: Competition, Capital, Distraction from other resources

23. Challenge 2: Bleeding out popularity in sports they dominate
Strategic Option 1: Retain customers by increasing customer service (innovative=twitter)
Pros: Can be implemented with little disruption + ⇧’s customer satisfaction
Cons: This probably won’t have a big enough effect on its own
Strategic Option 2: Withdraw from sports Nike completely dominates
Pros: Can focus resources on segments they can dominate themselves
Cons: Voluntarily giving up industry power to competition

24. Challenge 3: Failure to adapt to market changes fast enough
Strategic Option 1: Increase investments in market research and design (constantly)
Pros: Better understanding of how to addressing the shifting customer tastes
Cons: Expensive & could jeopardize customers who like the current culture
Strategic Option 2: Increase celebrity and athlete endorsements
Pros: Can aid in controlling customer tastes rather than trying to catch them
Cons: Very expensive and relies on the celebrities’ images

25. Recommendation as to how Adidas should move forward
Long-term: Gain popularity in the US.
Short-term: Focus on sports they already dominate.
Mid-term: Once momentum is gained, ramp up efforts to completely beat out
competition in these sports.
(Adidas needs to be thinking long-term)

26. Thank you
1 question please

27. References
Newstex Finance and Accounting Blogs. "American Banking and Market News: Adidas AG Downgraded by Credit Suisse to "Neutral"
(ADDYY)." ProQuest. ProQuest LLC, 08 Aug. 2014. Web.
Phelps, Stan. “Culture is King: Three Ways Adidas Is Striving to Build a Caulture of
Extraordinary.” Frobes/CMO Network. Forbes. 20 Oct. 2015. Web. 15 Apr. 2015.
Peopalove. "A German Brand With Strong Brand Identity." Peopalove.com. Peopalove, n.d. Web.
Porter’s Five Forces Model. (n.d.). Retrieved December 1, 2015, from
http://crackmba.com/porters-five-forces-model/
Smith, Diana. "Fitness Clothing - US - October 2014." Mintel Academic. Mintel Group, 2014. Web.
Statista. "Number of Retail Stores of the Adidas Group Worldwide 2008-2014, by Store Type | Statistic." Statista.com. Statista, n.d.
Web.