Impossible is nothing

A name that stands for powers in all types of sport around the globe. The adidas Story A name that stands for powers in all types of sport around the globe. adidas is registered as a company, named after its founder: 'Adi' from Adolf and 'Das' from Dassler. The idea was as simple as it was brilliant. Adi Dassler’s aim was to provide every athlete with the best possible equipment. It all began in 1920, when Adi Dassler made his first shoes using the few materials available after the First World War.

The adidas product range extends from Shoes, Apparel and Accessories Today The adidas product range extends from Shoes, Apparel and Accessories For basketball, soccer, fitness and training to adventure, trail and golf.

Logo The shape formed by the bars represents a mountain indicating the challenge to be faced and the goals to be achieved.

business ownership Form of An international corporation with shareholders, customers, suppliers, employees and Executive and Supervisory Board members from all over the world. The name of the Corporation is adidas-Salomon AG It is a listed Company (Listed in Deutsche Börse stock market)

What to Produce adidas Sport Performance -Professional sportswear, equipment -Functional and innovative products ~Basketball ~Football ~Golf ~Running ~Tennis ~Cycling ~Accessory (watch, sunglasses)

adidas Originals - Causal wear - Perfect fusion of sport authenticity and global street style ~shoes ~apparel ~bags

adidas Sports Style -Fashionable, stylish ~Men ~Women ~Accessories ~Footwear

Factor of production Labour adidas employs many employees. In 2006, the new adidas Group has more than 25,000 employees. Employees belong to labour because they work for adidas to run the internal and external business .

Capital adidas’s buildings, machineries, fabrics, and other raw materials are capital. It is because they are man-made resources used to assist production. It is private capital because it is owned privately and used for production.

Target customers Brand adidas Sport Style : fashion conscious customer adidas Sport Heritage : Sports lifestyle customer adidas Sport Performance : Performance athletes Salomon : free ride athletes Tailor-Made – adidas Golf : golfers

Demand and supply ~ As adidas is a brand with long history and good quality, ~ It developed into a sports and fashion label gradually. ~ It had a large number of supporters to buy adidas’s products. ~ Elasticity of demand is inelastic. ~ The price of its products ~TR will ~ Gain > Loss As a result the total revenue will increase. adidas products (apparel, footwear)

Demand and Supply ~As accessories are not daily necessities, ~the elasticity demand of adidas’s accessories is more elastic than the footwear and apparel ~it is elastic. ~When the price of accessories decrease , the TR increase adidas’s product (accessories)

VS Competitive environment ~Non price competition Advertisement For example : Nike adidas VS

Market Structure adidas belongs to monopolistic competition Reason : 1~ A large number of sellers and buyers 2~ The goods sold are heterogeneous 3~ Imperfect information of the market 4~ The sellers are price-searchers 5~ Non-price competition is involved

SWOT Strength : 1 International status is high. 2 Has large market shares because it has many lines and branches 3 Gain benefit from economies of scale Large scope of specialization Making efficient use of modern machines 6 Getting bank credit and capital at a lower interest cost 7 Advertising costs are spread over a larger output 8 Market diversification

Weakness : Opportunity : Threat : 1 Lots of substitutes ( e.g. Puma , Nike ) 2 Reduce efficiency Due to the problems of communication and co-ordination Opportunity : 1 Open more lines such as elderly 2 Expand the market of women and children 3 Explore more market in developing countries Threat : 1. Many Competitors

Conclusion As Hong Kong is now facing the problem of ageing, the market of the elderly will become larger. Therefore, we suggest adidas to open more production lines for the elderly in order to increase its market size and profit. Moreover, women are fashion-conscious, so their demand for this fashion label will increase . Therefore, adidas should increase its market share in women’s market. Nowadays, sports become more important for children. The parents will buy more sports hardware for their physical development, adidas should focus on children market also. As a result, the profit of adidas will increase!!!!

Sources: http://www.adidas.com The END Thank you for your attention The project is done by Christy Law Kennis Lau Gladie Ng Erica Tam Sources: http://www.adidas.com