2. Adidas
JESSE JOSHUA 15500411
ANTHONY E. ONYEAMA 15500032
ELVIN HASANOV 145392
NURSULTAN ESHBEKOV 145009

3. Introduction
• Adidas is a German multinational corporation founded by Adolf "Adi"
Dassler that designs and manufactures sports shoes, clothing and
accessories headquartered in Herzogenaurach, Bavaria. It is the
largest sport ware manufacturer in Europe and the second biggest in
the world.

4. VISION AND MISSION STATEMENT
• Vision statement: The Adidas Group strives to be the global leader in
the sporting goods industry with brands built on a passion for sports
and a sporting lifestyle.
• To become the best sports brand in the world. To that end, we will
never equate quality to quantity. Our founder Adi Dassler was
passionate about sports. For Adi, the athlete came first. He gave
those on the field, the court and the track the unexpected and the
little differences that made them more comfortable and improved
performance. This is our legacy. This is what the brand stands for. This
will never change.”

5. ADIDAS EXTERNAL ENVIROMENT
(PESTEL)

6. EXTERNAL FACTORS CONTINUES
• Apparently, the POLITICAL factors of the
company deals with areas of
government regulations which includes
tariffs in the forms of tax barriers or
price and exchange controls, work
schedule laws, labor unions etc.
Furthermore, giving instances with
Germany as a stable political country
which is governed by Christlich
Demokratische union (CDU), by the first
female chancellor, Angela Merkel with
massive achievements like; reductions
in organization tax, investment in the
areas of research and development
(R&D), additional investments on
infrastructure as well as trying to
balance the political and multinational
needs with the general population, to
mention but a few.
• ECONOMIC: Economically, Adidas
profitability is affected in the areas of
inflation, taxation, unemployment as
well as per capita income. However,
there exists unstable stock market
caused by some fluctuations of
interest’s rates leading to the growth
rate fluctuations too. So with a nominal
GDP of 3.316 trillion US Dollar and has
approximately an unemployment rate of
7.4% in 2010 and has presented her the
fourth largest economy in EU with no. 1
in terms of purchasing power. The
country is highly dominated in motor
vehicles, machinery, chemicals etc.
Imports and exports of Germany is
rated 2nd in world largest trader 2011.

7. • SOCIAL CULTURAL: As one of the leading
countries of the world, Germany has various
social-cultural factors which affects its
innovation. It therefore means that Adidas
should take into consideration these factors
which includes culture itself, religion,
gender, language, race, buying habits, life
style in order to have a successful
implementation of its strategies across
regions by verifying the obtainable cultures
of the land and be able to adapt to the
culture of the environment. The net
migration of the country is 0.54 migrants
/1.000 population with two major religions
as Roman Catholic and Protestant with 68%
faithful members, and with a below poverty
line of about 15.5% www.cia.gov, 2011.
• TECHNOLOGY: As the application
of science in industry and
engineering for the invention of
new things and or solving of
problems, Adidas employed
technology in the making of the
first world smart shoe by putting
a microchip and wireless mp3
player inside the shoe and it was
very appealing to the customers.
More so, the company uses a
heat-activated adhesives in their
packaging suitable for long
distance, humid conditions and
extreme temperature changes.
And to this effect, Adidas is
highly committed to research
and developments investments.

8. • LEGAL: As an authorized company, Adidas
is well aware and is fully utilizing all legal
procedures as ethically demanded and
with due respect to legal constraints to
trade description act , sales and supply of
goods acts (SSG), advertising standard
authority (ASA), independent television
commission (ITC), import and export, and
is plagiarized from a third party
trademark. Additionally, it considers laws
regarding health, employment, financial
regulations, product safety, to mention
but a few.
• ENVIROMENTAL: In the light of
environmental proceeds, Adidas aimed to
a courageous use of sustainable products
and compromise to products quality and
functional performance. Consequently,
the CO2 emission at its production and
manufacturing plants processes were
reduced with regard to climate changes
and nuclear face-out and at the same
time, the products quality is maintained
with less pollution to the environment.

9. ADIDAS FIVE (5) FORCES MODEL: Obviously, Adidas five forces model is highly
competitive especially with competitors like NIKE and UNDER ARMOUR.
Notwithstanding, the five forces model ranges from Company Rivalry, Threat of New
Entrants, Threat of Substitutes, Suppliers power and Buyers power
• THE COMPANY’S RIVALRY: This has to
do with the all competitors in the
sports industry which includes Nike
and UA. Competition here resides
precisely on quality, price. This means
that all efforts are focused towards
maintaining a good quality as well as
affordable price by the customers.
• THREATS OF NEW ENTRANTS: It is a true
fact that no person will trust to put money
into a new business where strong
competitors abounds unless it has access to
the resource fields with a strong brand
name trusted by customers especially from
other companies, otherwise it stands losing
the investments. Furthermore, with
dominant players like Nike, UA and Adidas,
it will always be a difficult competition to
invest a start up with enough capital, for
R&D, Marketing and advertising and in-
house or outsourcing bargaining of
contracts.

10. • THREATS OF SUBSTITUTES: A
substitute product is one that
can serve exactly or partly
what an intended product can
serve. In this case there are
other industries which can
produce non-sport wears, like
shoes, suits or accessories
which can serve same
purpose as products from
Adidas, Nike and UA and are
consumer friendly and at the
same time threats to these
companies.
• SUPLIER BARGAINING
POWER: It is very wise here to
measure and know the
suppliers bargaining power in
the current economic climate
over Adidas because it helps
to know if Adidas has a higher
bargaining influence over the
supplier as to be on the
gaining side or at the losing
side. Obviously over-all
suppliers bargaining power of
Adidas is low.

11. FIVE FORCES MODEL
• BUYER BARGAINING POWER: For the
fact that ‘’the customer is the king’’.
The sensitivity of price and the rate of
new product inventions or
innovations by competitors especially
in this high economic climate has
always change the weather in favor
of the buyers thereby increasing the
switching costs for substitute
products with a high bargaining
power to the buyer.

12. Develop critical success factors for Adidas
• Adidas key success factors inclusive effective advertising, innovation and new
design, cutting edge technology, a flexible supply chain, focusing on
sustainability and strong retail network.

13. • Adidas innovates for the 2014 football world cup, used some of
the cool tests, machines and how come up with the next
greatest football product.
• Athletes when they go and pick Adidas Jerseys up and they
realize it is 50% lighter.

14. Value Chain analysis
• Primary activities – Adidas used heavy marketing advertising
techniques to grow its market share in the United Stated.
• Supportive activities – Adidas was the first to modify and create what
is now the modern track and soccer cleat. The new policy is each of
its three units is responsible for at least one new innovation per year.

15. Adidas is a brand name which is one of the strongest in the world. We
know Adidas as a famous manufacturer for its shoes, clothing and
accessories. We develop the SWOT, Space Matrix, BCG Matrix, IE Matrix,
QSPM
Impossible is Nothing
SO-strategies WO-Strategies
Expansion strategy will allow forAdidas to grow
as long as its strong brand name. (S1,O3)Effective
distribution of Adidas company will be affect
positively for its expansion strategy. (S6, O3)Strong
financial resource will help to increase amount of
production due to increasing demand in developing
countries. (S3,O2)
Increasing demand in developing countries would
be affected for limitation of premium products for
customers because of high technology and
production methods by high
technology.(O2,W2)Adidas has 2 strong brand
names under one but integration backward
strategy will give more power. (W1,O1)
ST-Strategies WT-Strategies
Adidas is very strong but there is Nike is N1.
(T2,S,1) Even Adidas is very strong in
diversification products its competitors are also
competing.
It can negatively affect Adidas position that Adidas
has only 2 brand names and weaker than the Nike.
(W1,T2) Adidas produces 93 % of the products
outside of the country which is make for suppliers
have more bargaining power.(T1,W3)

16. As we know Space Matrix also consists of two dimensions
such as Internal- Financial Strengths ,Competitive
Advantage and External- Environmental Stability and
Industrial Strengths
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17. This is the evaluation of BCG (Boston
Consulting Group ) for Adidas Group of
companies
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18. Adidas company holds four types of strategy
-Diversification strategy - Adidas is a well-known company with its multiple
product and also very successful brand name.
-Backward integration- The company is outsourcing in foreign countries
specially in Asia. The percentage of outsourcing is 93 % and it is very high. In this
condition the suppliers have high bargaining power
-Market Development- Entering to a new market will be successful due to there
is a high level of competition within the market, so in the purpose of company
development the company consider to growth
-Product development- Adidas company believe that the development in the
product line will give benefits and will differentiate from those in the market
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19. Adidas is a first sportswear company in Europe but in the
world Nike is leading with the percentage of 39.2 % . Then
Adidas with 15,1 %, Reebok 10,9 %, New Balance 9,4 % and
others
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20. Conclusion
• .....We are living in a fast-changing world. Only what is new is
relevant to the consumer. Therefore, we have to relentlessly
focus on ‘creating the new’ for our consumers. And we have to
constantly re-invent ourselves as an organisation to lead the
change in our industry. Going forward, speed will be a key
competitive advantage for us as we transform the adidas Group
into the first true fast sports company
HERBERT HAINER, ADIDAS GROUP CEO
MAKING IT SUCCESSFUL WILL BE A TRUE TEAM EFFORT.
WE ARE HERE TO WIN!
Impossible is Nothing