Premium Essay

Adidas 5mp

In: Business and Management

Submitted By helenteo
Words 884
Pages 4
Michael porter 5 forces analysis As said by Porter (1980), “The collective strength of the forces determines the ultimate profit potential” Therefore, using Michael Porter 5 forces would be more appropriate to evaluate Adidas’s competitions as well as implications in the footwear industry.
Threats of new entrants
In the footwear industry, Adidas is considered as one of the leading competitors. Thus competitors who want to enter the market would need to think twice before entering, as there might be a loss or a crease in operations as there would be more resources needed to promoting advertisement and increasing brand recognition in order to compete with existing rivals. Especially when Adidas is gaining on Nike by sponsoring the Europeans soccer tournament where there were eventual winners Spain (Torry 2012).

Therefore, when it is harder for new competitors to enter the market, the more unfavourable the industry attractiveness is, as the cost of entering to complete might incur greater loss.

Threats of substitutes
There are little product substitutes to the footwear industry that Adidas is competing in. One example of a substitute could be simply just normal casual footwear; such as Cros, which are covered slip-on shoes that have been very popular in water sports as well as a fashion items. It could be substitutes to customers who do not indulge themselves in sports or light exercise. (Lussier, Kimball) Thus, we believe that the availability of product substitutes to the industry that Adidas is competing in is very low which means that the industry attractiveness would be high.

However, as sporty footwear products are known to be expensive as compared to other casual footwear such as converse or Tommy Hilfiger, thus the costs of switching to such substitutes would be high. (Lussier, Kimball) This is due to having more research and

Similar Documents

Premium Essay

Strategic Managment

...COHESION CASE: ADIDAS GROUP - 2011 Evaluation of Vision/Mission Statement 1. The Adidas Group strives to be global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. * Market * This mission component clarify that AG compete with other competitors such as Nike, Under Armour (UA), Callaway Golf (ELY), and the Armani Group. 2. We are committed to continuously strengthening our brands and products to improve our competitive position. * Products or services * In this component of mission statement, Adidas Group has sold three main product groupings to their customers which are footwear, apparel and hardwear. * For example, Adidas even become the major supplier of team kits for international football teams to remain international competitive. 3. We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to market. * Technology * Regarding to the component in this statement, it can be seen that the new Adidas product is the Adizero Feather, the lightest everyday running shoe weighing only 160g which enables the athletes to run faster and improve performance. 4. We are consumer focused and therefore we continuously improve the quality, look, feel and image of our products and our organizational structures to match and exceed consumer expectations and to provide them with the highest value. * Customers * Adidas Group has...

Words: 421 - Pages: 2

Premium Essay

Business

...adidas AG (German pronunciation: [ˈadiˌdas]) is a German multinational corporation that designs and manufactures sports clothing and accessories based in Herzogenaurach, Bavaria, Germany. It is the holding company for the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-Adidas golf company (including Ashworth), Rockport, and 9.1% of FC Bayern Munich. Besides sports footwear, Adidas also produces other products such as bags, shirts, watches, eyewear, and other sports- and clothing-related goods. Adidas is the largest sportswear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world.[3] Adidas was founded in 1948 by Adolf Dassler, following the split of Gebrüder Dassler Schuhfabrik between him and his older brother Rudolf. Rudolf later established Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany. Puma is also based in Herzogenaurach. The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo.[4][5] The company revenue for 2012 was listed at €14.48 billion.[2] Gebrüder Dassler Schuhfabrik Christoph Von Wilhelm Dassler was a worker in a shoe factory, while his wife Pauline ran a small laundry in the Bavarian town of Herzogenaurach, 20 km (12.4 mi) from the city of Nuremberg. After leaving school, their son, Rudolf "Rudi" Dassler, joined his father at the shoe...

Words: 5517 - Pages: 23

Premium Essay

Advertising Strategy of Adidas

...Advertising Strategy of Adidas: A comparative Study ADVERTISING STRATEGY OF ADIDAS A COMPARATIVE STUDY Prepared As a course Requirement of (Advertising and Public Relation-mkt 424) M. Atiqur Rahman Patuakhali science and Technology University Bangladesh atik.bdpalo@yahoo.com www.pstu.ac.bd Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-1 Advertising Strategy of Adidas: A comparative Study EXECUTIVE SUMMARY Adidas Inc. is a marketer of sports apparel and athletic shoes. The German manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large multinational enterprise. In keeping with the brand image is its association with the distinctive logo and its advertising slogan, "Impossible is Nothing." In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion. At the critical time of global economic crisis, Adidas will react to the consumers’ pessimistic attitude and stressful emotion during this period. It may become a good chance for Adidas because it can take advantage of its previous advertising way of “Impossible is Nothing” campaign by sponsoring sports stars to express the corporate philosophy of grit, determination, passion and humor, giving people more courage and psychological comfort in face of economic crisis. But besides that, we also focus more about family function especially in Asian countries which emphasize a lot on family, which can provide...

Words: 4552 - Pages: 19

Premium Essay

Markeing Proposal

...plan in order to increase their awareness, meet their needs and wants, and also capture new customer’s value. General background Footwear Industry: The global footwear market is highly competitive and fragmented with a few major companies and many smaller players. (Global footwear market report, August 2009) In 2010, Singapore Footwear Market reached S$635 million. Nike background: Nike, Inc is the world leader in athletic, casual and leisure footwear sales for men, women, and children. Running is Nike’s biggest category, generating $2.8 billion in annual global sales. It operated 232 retail stores internationally in over 200 countries. (http://www.nyse.com/listed/nke.html) Nike’s main competitors are: Adidas AG, Reebok, Puma AG, Asics Corporation and others. Macro environment and significant influences: The recovery of global economy is along with the stable development in Asia Pacific economies. The coming of sport events: Olympics, Asiad, Seagames and running events in Singapore GDP growth to be at 5.5%, CPI inflation is expected to remain 2.5% and 3.5% in 2012, the raise of resident income The awareness of heath care is increasing in the social lead to the number of people walking and jogging is going up * All...

Words: 708 - Pages: 3

Premium Essay

Ehab

...over again at the age of 49, registered the “Adi Dassler adidas Sportschuhfabrik” and set to work with 47 employees in the small town of Herzogenaurach. On the same day, he registered his company that included the registration of the soon-to-become-famous Adidas 3-Stripes. You are asked to access the Adidas’s web page at: www.adidas-group.com/en. From Adidas’s home page click on "Financial reports", and then download the Adidas Group Annual Report 2012. 1- Explain whether Adidas’s Annual Report is primarily a financial accounting document or a managerial accounting document. Provide evidence that supports your conclusion. (100 words) 2- Identify and discuss 4 key elements of Adidas's strategy. (180 words) 3- Discuss the Characteristics of information at the operational levels of decision making. Explain the link between information and the company's competitive strategy. (130 words) 4- Give a definition of Leadership and discuss the key attributes and qualities of a “Leader”. Describe the ways in which Adidas is supporting and improving its leadership. (250 words) 5- Discuss the role played by Adidas's organizational structure in developing its competitive advantage over the last couple of years. (250 words) 6- Write a brief report describing what roles does the accounting system play in the formulation and execution of Adidas Group’s strategy. (250 words) 7- Describe three ways in which the Adidas Group develops its employees’ skills. (100 words) 8- Explain...

Words: 306 - Pages: 2

Premium Essay

Dhawal

...Question 1…………………………………………………………………………….…..4 Question 2………………………………………………………………………………...5 PART III: INDUSTRY ANALYSIS……………………………………………………………6 Question 1………………………………………………………………………………..6 Question 2………………………………………………………………………………..9 Question 3………………………………………………………………………………..9 Question 4……………………………………………………………………………….11 PART IV: STRENGTH ASSESSMENT……………………………………………………..12 Citations…………………………………………………………………………………………13 PART I: DESCRIBE TWO PUBLICLY TRADED BUSINESS RIVALS 1. What two publicly traded business rivals is this paper about? Give their Corporate addresses. Describe the businesses in which they compete against each other. What industry are these businesses competing in? Nike Inc. and Adidas AG are the two largest and arguably well known sportswear companies in the world. Both companies compete against one another in the numerous industries including the athletic footwear industry. Nike Inc. is in itself the world’s largest athletic footwear supplier, holding an astonishing 50% of a 20 billion dollar global industry (S&P, 2010) and 40% of the US market (IBIS, 2010). Nike powers its massive lead on the market with innovative technology and product creation often bringing all new ideas and offerings to the market before any other. Nike Inc. describes their principle business activity as “the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products” Nike earned 2009 revenues...

Words: 3820 - Pages: 16

Premium Essay

Porter’s Five Forces

...Porter’s Five Competitive Forces Porter’s Five Forces is a framework for industry analysis and business strategy development, which helps business people understand the relative attractiveness of an industry and the industry’s competitive pressures. The five competitive forces are threat of new entrants, threat of substitute products or services, rivalry among existing competitors, bargaining power of buyers and bargaining power of suppliers. Figure 1: Porter’s Five Forces Threat of new entrants The threat of new entrants of Nike is low as there are high barriers to entry into the industry. It is hard to enter into the market as of a few reasons. The capital required to penetrate successfully into the industry is high, and the new entrants usually don’t have such a huge amount of capital in the beginning. Furthermore, the brand name of Nike is strong and well established. Leader like Nike has made the industry what it is today. Consequently, long-time competitors like Saucony and K-Swiss have been struggling for years just to keep its brands alive. This situation has further hindered the entry of new competitors. Up until 1997, Nike was a market leader with 45% global market share. Nike did not have to worry about new companies taking away much, if any, of its market share. With Nike’s well known brand name, no company stood to make any dent in Nike’s market share. But when Nike was accused of employing Indonesian children under 16 years old to produce their athletic...

Words: 2348 - Pages: 10

Free Essay

Purchasing and Supply Chain Management Adidas

...development of communications and transportation technologies, such as mobile communication and Internet, have forced the evolution of supply chain management. The purpose of this essay is to explore the influence of supply chain management on companies. Also, both sustainability and risk management are crucial in supply chain management, Objectives Through journals, monographs and related theories and articles on the website of the search, organize and summarize, discussed the importance of the supply chain in the contemporary business. In addition, based on the case of Adidas, the most important aim is to provide an analysis of its purchasing supply chain management activities that makes clear the key strategic decisions it has made and their effect on its success or failure. discuss its impact on supply chain management, including sustainable development, and risk management. Adidas (adidas) which was founded by is a German sports goods...

Words: 521 - Pages: 3

Premium Essay

Adidas

...Introduction Adidas is a company that manufactures shoes and sport apparel. The founder is Adolf Dassler who is German. The name created by combination of the name and surname Adi Dassler, who started producing shoes in 1920s with the help of his brother Rudolf Dassler. That make costumer, to recognize Adidas is three parallel stripes of the same color. Slogan: “IMPOSSIBLE IS NOTHING” 1. History 1949-2005 Due to the death of Adolf’s son (Horst Dassler), the Company was bought in 1990 by Bernard Tapie. Back then Tapie was specialist of rescuing bankrupt companies. Next step was to change the place of production to Asia and make a promotion campaign by using a famous person as Madonna (famous singer). In 1992 economical problems lead Tapi to sell Adidas to Lyonnais bank. Lyonnais sold Adidas to Robert Louis-Dreyfus who was also the president of the Olympique de Marseille football team. In 1997, Adidas AG acquired the Salomon Group, and its corporate name was changed to Adidas-Salomon AG. Seven years later, top English fashion designer Stella McCartney launched a joint-venture line with Adidas. This line was a sports performance collection for women called "Adidas by Stella McCartney". After 2 years, Adidas introduced the Adidas 1, the first ever production shoe to utilize a microprocessor. In August 2005, Adidas bought rival Reebok. At the same time sales had been closer to those of Nike in North America. The acquisition of Reebok would also allow Adidas to compete with...

Words: 2018 - Pages: 9

Premium Essay

Nike Marketing Plan

...disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: Brizaida Ribalta, Jessica Halsey and Shereen Hijazi ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments: Table of Contents Executive Summary 4 Company Description 6 The Origin of Nike, Inc. 6 Today’s Nike 7 Mission and Goals 8 Core competencies 10 Situation Analysis 11 Macro-Level External Environmental Factors 11 Competitive Environmental factors 12 SWOT Analysis 15 Competitors 16 Reebok 16 Adidas 17 Puma 17 Target Market 19 Segmentation 19 Target Marketing 19 Marketing Mix 20 Product Strategy 20 Distribution Strategy 21 Promotion Strategy 21 Pricing Strategy 24 Customer Relationship Management 24 Budget and Monitoring 26 Summary and Conclusions 28 List of References 30 EXECUTIVE SUMMARY Nike is a leader in sportswear providing high quality innovative products. Our mission is to continue pushing boundaries with innovation thinking and product development. We create products for...

Words: 5966 - Pages: 24

Premium Essay

Adidas

...Adidas Myrna Biacan October 25, 2013 Adidas In the world of athletics exists a wide span of products; products that are the athletes’ sole support in their sport. Numerous companies worldwide strive to be competitive, innovative, and socially responsible. They are the leaders of the best athletic performance products that are needed. One of these striving leaders is Adidas. Adidas deems to be the leading brand in sports equipment and continues to be successful in delivering the best footwear, clothing, and accessories for all sports, gender, and age. Their passion and mission to provide the best brands for sports and the sporting lifestyle and what sets them apart from the competition is what makes the company successful to this day. In the sporting industry, how do they continue to be the global leaders, as a global organization how do they embrace the responsibility to our environment, and what is their strategy is to support their efforts and continuously satisfy their international consumers. In general, I will give you an idea of how Adidas remains to be an efficacious, sustainable, publicly traded, international company. In a small town in Germany, Adolf Dassler began his mission to provide athletes with the best equipment in 1924. He formed the company name from a combination of his first and last names: 'Adi' is short for 'Adolf,' and 'Das' came from 'Dassler.' Originally, Adolf and his brother Rudolf ran the 'Gebrueder Dassler Schuhfabrik,' which means the 'Dassler...

Words: 2626 - Pages: 11

Premium Essay

Nike vs Adidas

...Nike and adidas are sportswear companies whose products are very popular around the world, while Nike has the upper hand in sales and sponsorships, Adidas is growing. Adidas owns Reebok, Taylor Made golf company and Rockport. Nike owns the Jordan Brand, Umbro, Hurley, Converse and Cole Haan. "Nike", the name came from the Greek name for the almighty Goddess of Victory. The company was originally named "blue ribbon sports". The name "Adidas" is a juxtaposition of the company founder Adolf Dassler's nickname-- Adi Dassler. Adidas' motto is "Impossible is Nothing" or "all day I dream about sports". Nike's motto is "Just do it". Adidas' sport section has a three stripe design; Nike has a "swoosh" symbol. Adidas' "Originals" brand has a "Trefoil" design. Nike initiated as a brand focusing on track and field while Adidas' primary focus was soccer. Both these companies have expanded enormously ever since and are the two most notable brands in any field of sports. Adidas believes in providing equipment for every sports present including boxing, table tennis, wrestling and gymnastics, without giving significant importance being the leader, while Nike believes in a more focused approach, dealing in the most popular and the most followed sports, making sure it's the most dominant force present. There are some perceptions that Nike is slightly more overly priced than it's German rival however there are no studies conducted which prove this. Some people also consider Nike to be more...

Words: 472 - Pages: 2

Premium Essay

How to Be Happy

...from very humble beginnings. Founder Phil Knight famously made his first shoes using a waffle iron in what he has called' a tiny operation in my mother's laundry room'. By 1992 it had become a $4.5 billion turnover corporation. In fact, NIKE's history goes back to 1963, when Knight (still today very much the head of the business) set up Blue Ribbon Sports to import running shoes from Japan to the US, or even to the late 1950s when he ran for the University of Oregon track team and started looking for better footwear. The name (Nike was the Greek goddess of victory) did not appear until 1972, and sales grew steadily thereafter on the public's new-found enthusiasm for fitness. Having overtaken Adidas, NIKE was caught napping by Reebok who stole US market share leadership in 1986. Far from admitting defeat, however, NIKE was 'reinvented' and fought back using sponsorship of sports stars such as Michael Jordan, Andre Agassi and (more recently) Eric Cantona to spearhead its positioning as the maker of top-flight performance athletic wear. Today it is the undisputed industry leader. NIKE's culture is easy to recognize, if hard to define. It prides itself on being a bit different, creative, iconoclastic. The senior team used to meet together for six-monthly strategy reviews that became known as 'buttface' meetings, with no holds barred and plenty of shouting at each other...

Words: 548 - Pages: 3

Premium Essay

Ek Ruka Hua Faisla

...INTRODUCTION:- Adidas AG (german pronunciation) is a german multinational corporation that designs & manufactures sports shoes, clothing & accessories based in herzogenaurach, Bavaria, germany, it is the holding company for the addidas group, which consist of reebok sports wear. Besides sports addidas also produces products such as bags, shirts, watches, eye-wear & other sports clothing related clothes. shoe designs typically feature three parallel bars. The companys revenue for 2012 was listedat $14.88 billon . Also known as Adi Dassler was born in Herzogenaurach, Bavaria, Germany on November 3, 1900. The son of Christoph Dassler, a shoe factory worker made his foray into the shoe making business when he was 20 years old. Adi had a passion to create a shoe specifically for athletes. He started in his mother’s laundry room using canvas and spare materials. With the assistance of his brother Zehlein (who made the metal spikes) and later his older brother Rudolf (who joined in 1924), the brothers formed the Dassler Brothers Shoe Factory. Adi made it a point to attend every major sporting event in an effort to convince athletes to wear his shoes. By the 1928 Olympics in Amsterdam, several athletes were wearing special shoes from the Dassler workshop. By the early 1930s, the company was making 30 different shoe brands for 11 different sports and had a workforce of nearly 100. The 1936 Olympics in Berlin offered a great opportunity for Adi as he equipped Jesse...

Words: 2739 - Pages: 11

Premium Essay

Adidas

...Introduction Since it was established in Germany in 1949, by Adolf Dassler, Adidas has been synonymous with the sporting industry. Today, Adidas is a global public company and is one of the largest sports brands in the world. It is a household brand name with its three stripes logo recognized in markets across the world. The company’s product portfolio is vast, ranging from state-of-the-art sports footwear and clothing to accessories such as bags, watches, eyewear and other sports-related goods and equipment. Employing over 46,000 people worldwide, the Adidas Group consists of around 170 subsidiaries including Reebok, TaylorMade-adidas Golf, Rockport and CCM-Hockey. The Group's headquarters are in Herzogenaurach, Germany. In the second quarter of 2013 the Group’s revenue was €3.383 billion. Business objects Aims: Usually long term goals (and quite broad). They define who or what you want you or your company to be. Objectives: Usually medium-long term goals (and more of a sense of direction). These define the purpose and the aims of the organization. Strategies: Usually broader ways and means of achieving objectives. These say how you’re going to get to where you want to go. Tactics: Usually short term goals. These are strategies that are put in place on a day-to-day basis to help achieve the objectives. Objects | Strategies | Tactics | *To be the global leader in the sporting goods industry.* Maximize the operational and financial performance. | * Creating shareholder...

Words: 2558 - Pages: 11