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-

History Timeline 1920 Adi Dassler made his first shoes in Herzogenaurach near Nuremberg in Germany at the age of Developed the first special shoes for soccer and track and field. –Studs and spikes where introduced for the first time After World War –Adi Dassler started with 47 workers –Made post war shoes using canvas and rubber from American fuel tank.

Timeline Cont The two brothers Adi and Rudi Dassler split up due to dispute 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 Registered the unmistakable three stripes Breakthrough came when Germany won the Soccer World Cup wearing boots with screw in studs by Adidas in Hungary Adidas apparel for competition and training was produced.

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

Timeline Cont In Germany stock market, Adidas was one of the most interesting new listings Adidas equipped 6,000 Olympic athletes from 33 countries. –Adidas athletes won 220 medals, including 70 gold. –Apparel sales increase by 50% Adidas AG obtained the Salomon Group with the brands Salomon, TaylorMade, Mavic and Bonfire. The new company is named Adidas-Salomon AG.

Timeline Cont first Adidas original store opened in Berlin followed by Tokyo in December Adidas opened its new North American headquarters downtown Portland, Oregon 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 Adidas partnership with Stella McCartney Adidas Salomon AG sold Solomon business segments (including Salomon, Mavic, Bonfire, Cliché and Arc’Teryx) to the Amer Sports Corporation Adidas-Salomon AG bought Reebok 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?