Overview Commercial Website Sarah Corporation SWOT Analysis Yvonne Competitors Industry Jerel Global Expansion & Challenges Recommendations

Corporation – History  It started as Dassler Shoes, which was founded by Adolf and Rudi Dassler in 1924  In 1949, Adolf renamed the company to Adidas AG  In 1995, Adidas went to public on the Frankfurt and Paris Stock Exchanges  In 2008, Adidas was the official sportswear partner of Beijing Olympic Games.

Corporation – Current & Future Profile  170 subsidiaries in the Americas, Europe, and Asia  Employs approximately 39,596 people  Six major segments: Wholesale, retail, TaylorMade- Adidas, Golf, Rockport, Reebok-CCM Hockey  Revenues were $15,333.3 million during the financial year ended December 2009  Pay attention on digital social networks or digital broadcast mediums

SWOT Analysis  Strengths Experimentation Long-term cooperation and interaction with major international tournaments Remarkable brand image  Weaknesses Familial pattern company High dependence on third party manufacturing

SWOT Analysis  Opportunities Seize a large share of the emerging market Reorganization aimed at improving efficiency Reebok’s revival  Threats Intense competition Counterfeit products Foreign exchange fluctuations

Competitors Nike, Inc. Puma AG Rudolf Dassler Sport New Balance Athletic Shoe

Competitors – Nike  First started as Blue Ribbon Sports in 1964  Renamed Nike, Inc. in 1978  Logo: Swoosh & Slogan: Just do it  Competitive Advantages: Integrate vertically Widen product portfolio Conduct acquisition

Competitors – Puma  Founded in 1948  Experienced a hard time in operation in early 1990s  redesign the ideas of: Brand concept Marketing Distribution

Competitors – New Balance  Founded by William Riley in 1906  Primarily a footwear manufacturer  Significant Strengths: Technology innovation Wide geographic presence

Industry  100 manufacturers, 1,500 wholesalers & 30,000 retail outlets  Combines annual retail revenue = $25 billion  Future Trends: Utilize high technology to develop new products Industrial standards increase the difficulty of market entry  Global Issues: Handle intense competition worldwide Control over the contract manufacturers Eliminate increasing amount of counterfeit goods

Global Expansion & Challenges – Global Expansion  1954 Soccer World Cup - Germany vs. Hungary  1956 Olympics Marketing done by Horst Dassler (Adi’s son) 33 new Olympic records were set with Adidas shoes  Entry into the U.S. Market Adidas dominates against U.S. competitors Flyers and Keds

Global Expansion & Challenges – Global Expansion  Late 1970’s Company was making 200,000 pairs of shoes a day Generating 500 million in sales annually Operating in 17 countries & selling to 150 different nations  1980’s Domination of Nike and Reebok in U.S. Markets  1993 Adidas named Robert Louis-Dreyfus president (cousin of Julia Louis-Dreyfus, Seinfeld)  1997 Acquired Solomon Group ( Salomon, TaylorMade, Mavic, and Bonfire)  2006 purchased Reebok Ltd. For 3.8 billion

Worldwide Market Share,

Global Expansion & Challenges – Challenges  Initially from Puma in 1940’s  Nike and Reebok in the 1970’s  Challenges in China Financial Crisis after Beijing Olympics in 2008 Old Adidas inventory

Global Expansion & Challenges – Challenges  War with Nike Inc. World Cup 2010 Endorsed many favored countries including Spain, Argentina, and Germany Net profit increased from 6.5 million in Q1 of 2009 to 222 million in Q1 of 2010  Recently introduced Originals fashion brand

Recommendations  Short Term Undertake an adjustment of its organization structure Expand its business activity on the Internet Creative advertisement  Long Term Push for growth into emerging countries Combat worldwide obesity problems Go Green