Adidas Cody F07

Presented By: Ed Williams Astra Curry Kenneisha Seymour Cody Weflen

Introduction • • • • • • • •

Adidas History Corporate Mission SWOT Analysis International Challenges and Competitors Global market Industry Analysis Global Issues Recommendation

History • Background Information • Headquarters- Herzogenaurch, Germany • Employees- 26,376 as of December 2006 • Website- www.adidas.com

History Timeline • 1920 Adi Dassler made his first shoes in Herzogenaurach near Nuremberg in Germany at the age of 20. • 1925 Developed the first special shoes for soccer and track and field. – Studs and spikes where introduced for the first time.

• 1947 After World War – Adi Dassler started with 47 workers – Made post war shoes using canvas and rubber from American fuel tank.

Timeline Cont. • 1948 The two brothers Adi and Rudi Dassler split up due to dispute. • 1948 Adidas registered as a company named after its founder “Adi” and “Das” Dassler. – Rudi, on the advice of an advertising agency changed his company to Puma.

• 1949 Registered the unmistakable three stripes. • 1954 Breakthrough came when Germany won the Soccer World Cup wearing boots with screw in studs by Adidas in Hungary. • 1960 Adidas apparel for competition and training was produced.

Timeline Cont. • 1978 Adi Dassler dies at the age of 78. • 1987 Unexpectedly Horst Died at the age of 51. • 1989 Adidas was transformed into a corporation “Aktiengesellschaft” and retained family ownership. • 1991 Adidas equipment was launched. • 1992 A younger target was addressed with street ball. • 1993 Robert Louis Dreyfus took over management if Adidas.

Timeline Cont. • 1995 In Germany stock market, Adidas was one of the most interesting new listings. • 1996 Adidas equipped 6,000 Olympic athletes from 33 countries. – Adidas athletes won 220 medals, including 70 gold. – Apparel sales increase by 50%.

• 1997 Adidas AG obtained the Salomon Group with the brands Salomon, TaylorMade, Mavic and Bonfire. The new company is named Adidas-Salomon AG.

Timeline Cont. • 2001 first Adidas original store opened in Berlin followed by Tokyo in December. • 2002 Adidas opened its new North American headquarters downtown Portland, Oregon. • 2003 Adidas was included in Dow Jones Sustainability Indexes (DJSI) for a 4th consecutive year. • Opened a 3,500 square foot meter Factory Outlet with sales floor space around 2,000 square meters. • Sales reached 6.3 billion and net increase of 14% to 260 million.

Timeline Cont. • 2004 Adidas partnership with Stella McCartney. • 2005 Adidas Salomon AG sold Solomon business segments (including Salomon, Mavic, Bonfire, Cliché and Arc’Teryx) to the Amer Sports Corporation. • 2006 Adidas-Salomon AG bought Reebok. • 2008 Adidas will be the Official Sportswear Partner for the Olympics in Beijing.

Corporate Mission • Strives to be the leader in sports gear and apparel • Improving operations • Core Values – Performance – Passion – Integrity – Diversity

• SWOT – Strengths • Top market position • Strong brand name • Geographically-diversified operations

• SWOT – Weaknesses • Poor margins • Low inventory turnover • Poor ROA and ROI • Underperformance of Reebok

• SWOT – Opportunities • Sponsorship agreements • Adoption of healthier lifestyles • Growing global footwear market

• SWOT – Threats • Rising costs of raw materials • Counterfeits • Legal Risks

International Challenges and Competitors • Nike challenges Adidas in home market • Adidas Acquires Reebok to challenge Nike • Competitors – Nike – Puma – Others • Amar Sport • Rossignol

Market Share • Nike – 36% in United States Market

• Adidas and Reebok – 21% in United States Market – Reebok gave Adidas a 28% share in footwear market

• Puma – 1.1% in United States

Global Market • Number of Employees 26,376 • Merged with Reebok • Global market share of 35% • Product line is widely ranged

Industry Analysis • Adidas is large part of industry • Industry includes apparel, footwear, and accessories • Adidas purchase of Reebok

• Adidas Subdivisions • Adidas – Main part of company – Different Divisions • Sport Performance – Technologically oriented (mi innovation center)

• Sport Heritage – Original and past inspired products

• Sport Style – Future stylish sportswear

• Adidas Subdivisions • TaylorMade-Adidas Golf – Founded 1979 – Leader of golf industry – Endorsements and Sponsorships • • • •

Retief Gooson Scott Verplank Sergio Garcia John Daily

• Adidas Subdivisions • Rockport – Founded 1971 by Saul and Bruce Katz – Operates in 66 countries – Purchased by Reebok in 1984 – Adidas acquired Rockport when it acquired Reebok

• Adidas Subdivisions • Reebok – Bought by Adidas in 2006 forming the Adidas Group – Purchased to better compete with Nike – Nike still number one but Adidas Group very close

Global Issues • Europe – Slow Growth • Due to rising costs of resources

• China – Big Boom • Due to increasing popularity of sports

• Future Trends • More internationally oriented • More Endorsements and Sponsorships • Increased R & D – Looking at new technologies

Recommendations • Short Term

– Invest in producers of raw materials – Keep up with endorsements and Sponsorships

• Long Term

– Increase R & D – Advance further in Technologies – Keep supporting diversity

Any Questions?