Adidas is corporation run by shares of the stake holders and is run on the stock exchange. It is the second largest manufacturer and biggest seller around the world and the largest network in Europe. Beside sports goods, the company is also associated with the manufacture of clothing and wears accessories like shirts, bags, watches, belts etc. The company is Germany based and is headquartered in Herzogenaurach after its formal registration in 1949. Since then Adidas has experienced several owner’s shifts from Adolf to Bernard Tapie by 1990, in 1992 to Lyonnais bank, and then finally to Robert Louis Dreyfus in 1997, who has made the empire much wide spread and more renowned.

Strengths

• Adidas is the biggest sponsor of the sport events specially football.

• It management team is in full strength with 39,600 expert employees serving worldwide.

• Brand recognition of the company especially its traditional three strips style is well reputed.

• A diverse range of products. Specially that being offered on its website including shoes, bags, shirts, perfumes, toiletries, eye wears and other clothing related goods.

• The company has been obeying environmental laws and has never been accused for pollution.

• Addidas acquisition includes Salmon groups and Reebok which has been its biggest rival previously.

• The company is full on competing with its American rival Nike and after Nike its popularity is at boost in North America.

• In early 2000 the company started a successful joint venture with English fashion designer Stella McCartney.

• 11 years deal was announced by the company in 2006 to be apparel provider to national basket ball association (NBA).

• Annual revenue of Adidas is €10.38 billion as per 2009 data €508 million being its operating income.

• €245 million profit was calculated previous years.

• Comfort-ability of the customers is their key mission and new products are introduces keeping in view the response of the customers.

• Employees’ rights and interest are totally safeguarded by Adidas policies and management.

• It’s demographically wide spread, every country has Adidas outlets in every city or the branded products are scattered in different branded super marts.
Weaknesses

• Price though linked to high quality is very high starting from € to 250 Euro per item.

• Web booking is offered only to the USA locations or some locations of Europe.

• Proper network of retailing that is manufacturing and transportation to the whole sale dealers is not always followed and direct purchases from the manufacturer often create price ambiguity within the customers.

• Customer care centers are not totally functional, and problems are faced specially in the case of e- marketing.

Opportunities

• Joint Venture of Adidas with English fashion designer Stella McCartney is promoting the female community to participate in athletics as well as to wear branded kits of Adidas.

• Adidas is planning to outscore its web development and ecommerce to the third party, which would then pay the company through ease at customer edge.

Threats

• Fakery of Adidas products is very common as the original products are very expensive and not easily affordable.

• Nike that is its strongest partner is paying much attention to the diversity of models in one item that is foot wear, this leads to enhanced marketing
• The sponsored athletes like Kobe Bryant are reflecting negative image of the brand through their illegal activities like sexual abuse.

References

• Freeman, Mike (August 19, 1999). "Taylor, Adidas merge reshuffles". The San Diego Union-Tribune: p. C.1. Retrieved online from http://pqasb.pqarchiver.com/sandiego/access/1246929281.html?dids=1246929281:1246929281&FMT=ABS.

• "Annual Report 2009". Adidas. http://www.adidasgroup.com/en/investorrelations/assets/pdf/annual_reports/2009/GB_2009_En.pdf. Retrieved on March 20, 2011.

• Official website http://www.adidas.com/com/homepage.asp. Retrieved on March 20, 2011.

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