1. Collette Maroussia Dubois Edouard Thonet Benjamin Van de Moer Anouk
Strategic analysis
Impossible is nothing
Collette Maroussia
Dubois Edouard
Thonet Benjamin
Van de Moer Anouk

2. Agenda A Brief History About the Market Focus on Adidas
Segmentation & Offers
Evolution around the world
What are their challenges ?
Business Model
Complexity of the supply chain
Q/A

3. Adidas, from birth to multinational corporation
Foundation in 1949 by Adi Dassler
1970: Becoming a a true multisport specialist : more and more athletes trust adidas
1997: Acquisition Salomon Group
1995: Adidas group goes public
2001: New and current CEO Herbert Hainer: focus on innovation
1992: Death of Dassler: changing leadership
1993: New CEO: marketing driven company
: Acquisition of reebok, five ten and taylorsmade. Salomon leaves the team
2013: endless innovation: energy boost running shoe

4. Adidas group AG today’s missions & values
Performance
Passion
Integrity
Diversity
Adidas AG
Reebok
Adidas
Taylor
Made
Rockport
Adidas group AG focusses on brands with the same values
Source:

5. In wich market is operating Adidas?
Market in 2014:
245 Billion $
Sports apparel
Athletic footwear
Sporting goods equipment
Apparel: all kinds of clothing
Footwear: sport and desing shoes
Equipment: sport accessories

6. Main players in the market
Focus on marketing:
2,75 bn $ expenses in 2013
11% of revenue
13,6%
56,500
19,83
9,5%
2,3%
Market Share
50,728
10,982
Number of
employees
14,5
2,99
Net sales 2013(bnE)
Less spending on marketing:
1,45 bn € in 2013
9% of revenue
Enormous focus on marketing:
544M €
18% of revenues

7. Current trends in the global sportswear market
Focus on high potential markets
Enter emerging markets succesfully (China)
Have a diverse brand portfolio
Match every clients needs
Have a flexible supply chain
React quickly to changing consumer trends
Constant innovation
Be constantly at the cutting edge technology
Be a sustainable company
Satisfy shareholders, employees and partners + have a positive impact on society and the planet

8. Adidas’ own product segmentation & offers
1st segmentation
Segmentation of the different product categories
Adidas’ total sales
Sport performance
Sport style
2nd segmentation
75%
Segmentation of the offer to the client
25%

9. Adidas sales evolution around the world
Clear influence of emerging markets:
China and European emerging markets become a market of their own

10. The challenges Adidas has to face
Need in innovation
Embrace change and new technologies
High R&D investments: 128 M € in 2013
Battle with competitors
Fast growing emerging markets
Problems linked to weak currencies ex: the Russian rouble
Focus on investment in Russia and China
Be a sustainable company for the environment
Reduce relative environmental footprint by 15% by 2015
Need to have a credible Group Environmental Policy
Better policies in case of child labour
Supply chain control
Complex problem of fair wages within the supply chain: Adidas should enhance its bargaining power
Building a market share in the underpenetrated markets such as the United States (20% Adidas vs. 41% Nike)

11. Adidas’ current business model
Key partners
AFIRM
working group
Better Cotton
Initiative
Production
outsourced
ZDHC
FLA
Key activities
Sporting events
Sport performance
Sport style
Sponsoring athletes
Value proposition
Innovation &
cutting-edge
design
Be a sustainable
Company for
stakeholders
Diverse brand
portfolio
Quick reaction to
consumer trends
Distribution channels
Wholesale (66% of sales )
Retail (25% of sales)
Other businesses (9% of sales)
Customer segments and relationship
Athletes or passionates
about sports
(20-29 years old)
high school athletes:
next generation
of athletes (14-19)
Occasional
runners
Adidas Group
Customer
Care Center

12. Complexity of the supply chain
Product design & research and development
Germany
Manufacturing and production of shoes,
apparel and equipments.
90% outsourced, mainly
in Asia.
Adidas Group
Agent
Supplier
Licensee
Sub-Contractor
Challenge: Creating a flexible supply chain
Source:

13. Next Step, Last Step Personal Strategic Recommandation
Summary Report of Strategic Analysis
Personal Strategic Recommandation

14. Q/A