1. For more than 80 years Adidas Group is involved in world of sport at every level. Specifically, providing sport people with footwear, clothing and great range of accessories. In addition it has a big portfolio of products which are available everywhere in the world. Company concentrates its strategy on strengthening their brands and products in order to improve competitiveness and financial performance.
Their portfolio includes such brands as:
Adidas – Footwear, apparel, accessories
Reebok – Footwear, apparel and accessories
TaylorMade-adidas Golf – Golf Equipment: metalwoods, irons putters, golf balls, footwear, apparel and accessories Rockport – Dress, casual and outdoor footwear, apparel and accessories CCM-Hockey – Hockey equipment and apparel
2. The main principle of Adidas in terms of sports performance is delivered in the words “Play to Win”. In other words Adidas designs and produces the products for athletes bringing passion for them as well as allowing them to be faster, smarter, stronger, cooler and natural. They focusing on such sports as: football, basketball, running, outdoor, extreme sports and training. Moreover their have the other side of production and promotion allowing them to cover another market such as creation of their own unique sports style Original Group with its iconic sportswear label for streets with the main message be original “Celebrate Originality”. Moreover, they managed another fashion sportswear brands such Y-3 label and Porsche Design Sport. That means that they selling not just clothing but lifestyle, unique trendy teenage lifestyle. 3. Competitors
The main competitor for Adidas which should be mentioned is Nike Another competitor which is worth to mention is Puma
Amer Group PLC and Finnish Markka.
4. Market segment:
Young men ,women and children with passion towards fitness and sports Target group:
Urban upper-middle and upper class
* Biggest sponsor of sport events specificity football. Moreover, they produce official ball for almost each Europe or World Football championship. Another good example may be Olympic Games. * IT and various new technological gadgets are integrated in their products. For instance their new product “Boot with a Brain” which enables user to track and upload performance data, capturing 360 movement and key performance metrics. In addition, they developed the miCoach system which is integrated in apple products by creating an application which connects your footwear or t-shirt directly to your iphone or ipod.( observes data and a lot more possible actions can be done their) * First movers in various products such as I mentioned above “Boot with a Brain” * Brand recognition all over the world with its traditional 3 strips * Good brand history which created strong positive reputation and acknowledgment * Sponsors various sports stars such as Lionel Messi or Kobe Bryant * A divers range of products
* The company always obeys environmental laws and was never involved in pollution * Adidas acquisitions includes 5 well known brands
* “Together we Win” strong slogan which shows customers how Adidas cares about them. Moreover that words are strongly marketed inside the company as well. That can be seen even in their annual report. Such attitudes build strong relationship not only with customers but with employers as well. * Presented everywhere. Almost every country has Adidas outlets * High quality products guaranteed and well linked to high but competitive price. Weaknesses
* There are a significant number of complaints about online service which is not helpful and hard to navigate. * Internet store is limited. Provided only in USA and some EU countries. * High price for its products which is fixed everywhere.
* Directs sales from manufacturer creating conflicts and further misunderstandings in terms of price ambiguity Opportunities
* Increase in sponsoring female athletes and providing family clothing ( designer Stella McCartney involved) * Merger or Acquisitions of locally popular brands in various parts of the world and not only them. * Cooperate with online retailers to guarantee big variety of its products available for online shopping everywhere * Outsource web development and e-commerce to third party to make it easier for customers to find and to use that service * Enter new markets, market diversification. (for instance: sponsor extreme sports as redbull does or even produce and market sports drinks) * Increase usage of technological breakthrough in their products ( for instance more iphone, ipod apps, and integrate wifi for direct gathering of training information) * Charity is like a trend in nowadays world. Adidas can make a school to train gifted children in various sports it will not cost a lot because the produce sports equipment as well as sponser sports stars of all ages who might be the best coaches for children. Moreover continue providing to various schools and people experience with training and playing with their favourite sports star. * Cheap products without any trendy design and various modern attributes for lower-class. (As Coca-Cola did) Why should they loose clients? Threats
* Cut throat competition from competitors. Nike strong positive reputation and growing popularity. * Change in consumer lifestyle. Because of the growing rate of obesity and health problems. Or even such a substitute of sports experience as computer spots games such as Kinect or WII. * Increasing power of customers to set the price ( high price will be a problem) and increasing power of big retailers to force companies to set the price ( harms image) * Increasing price of raw materials
* Negative image created by sponsored athletes such as Kobe Bryant and his case about sexual assault * Increase in import and export duties
* Crises in the world. People are not able to pay such a big price for their products. * Price war between competitors can force the price to drop in order to sell.
I. “Annual Report 2011”, Addidas Group, Web, 15 Oct 2012