Case Study

Adidas
AG (German pronunciation: [ˈʔadiˌdas] ⓘ; stylized in all lowercase since 1949)[4] is a

German athletic apparel and footwear corporation headquartered
in Herzogenaurach, Bavaria, Germany. It is the largest sportswear manufacturer
in Europe, and the second largest in the world, after Nike.[5][6] It is the holding
company for the Adidas Group, which also owns an 8.33% stake of the football
club Bayern München,[7] and Runtastic, an Austrian fitness technology company.
Adidas's revenue for 2018 was listed at €21.915 billion.[3]
Adidas AG
Formerly Gebrüder Dassler Schuhfabrik (1924–1949)
Company Public (AG)

type
Traded as FWB: ADS

DAX component
Industry Textile, footwear

Founded July 1924; 99 years ago in Herzogenaurach,
Germany (as Gebrüder Dassler Schuhfabrik)
18 August 1949; 74 years ago (as Adidas)[1]
Founder Adolf Dassler
Headquarters Herzogenaurach, Bavaria
Germany
Area served Worldwide

(except North
Korea, Russia, Turkmenistan, Afghanistan, South
Sudan, Chad and Palestine)
• Thomas Rabe (chairman)[2]

Key people
• Bjørn Gulden (CEO)
Products Apparel, footwear, sportswear, sports

equipment, toiletries
Revenue €21.915 billion (2018)[3]
Operating €2.368 billion (2018)[3]

income
Net income €1.702 billion (2018)[3]
Total assets €15.612 billion (2018)[3]

Total equity €6.364 billion (2018)[3]
Number of 57,016 (2018)[3]

employees
Subsidiaries • Adidas Runtastic

• Matix
Website adidas.com
The company was started by Adolf Dassler in his mother's house. He was joined by
his elder brother Rudolf in 1924 under the name Gebrüder Dassler
Schuhfabrik ("Dassler Brothers Shoe Factory"). Dassler assisted in the development of
spiked running shoes (spikes) for multiple athletic events. To enhance the quality of
spiked athletic footwear, he transitioned from a previous model of heavy metal
spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse Owens to
use his handmade spikes at the 1936 Summer Olympics. In 1949, following a
breakdown in the relationship between the brothers, Adolf created Adidas and
Rudolf established Puma, which became Adidas's business rival.[1]
The three stripes are Adidas's identity mark, having been used on the company's
clothing and shoe designs as a marketing aid. The branding, which Adidas bought in
1952 from Finnish sports company Karhu Sports for the equivalent of €1,600 and two
bottles of whiskey,[8][9] became so successful that Dassler described Adidas as "The
three stripes company"
Question:
What have been major challenges facing Adidas trying to position itself in emerging
economies (China, India), and what strategy would you take given Adidas
competitive strength?
Adidas:
Adidas is a multinational federation that designs and manufactures sportswear such

as shoes, clothing and other appendages. China and India are emerging economies
occupied in global markets since they are rapidly growing. Regardless of the
challenges that Adidas is facing while positioning itself in these emerging economies,
it needs a strategy to sustain its success and competitive advantage.
Answer and Explanation: 1
The major challenges facing Adidas in its expansion in the emerging economies like
china and India is the existence of competitors. Nike being the most triumph
competitor, there is the existence of other competitors like puma, which steer in the
same market. Nevertheless, the company should be aware of the ingress of new
businesses to the industry. Another challenge that Adidas faces trying to position
itself in emerging economies is the change of consumer preference taste and
evolving market opportunities in the emerging economies. With these challenges,
Adidas require an established strategy to maintain its success. Adidas focuses on
remodeling, producing new and distinctive products and effectual proceedings to
help subsist the completion. However, after analyzing various strategies, the
adoption of customer relationship management can significantly impact positively on
the success of the business. This approach helps the company to develop a
variegated brand portfolio and serve all the mark
Conclusion
It seems that conducting a survey is a very good choice to allow consumers to

evaluate what they wanted and what they are unsatisfied with. However, the
drawbacks such as few willing respondents and not able to fully voice out their
opinions. This is not much of a problem as survey questions are not very specific. But,
conducting a survey is able to give us some idea of what consumers are really
thinking about Adidas products. In the future, survey questions will be made to allow
the consumers to give more accurate and specific answers to the Adidas brand. This
method, when done continuously, will create an idea that Adidas can use to fully
meet customer`s satisfaction and increase sales, thus profits increase.
The Idea that Adidas is tailored for the active, trendy and comfortable lifestyle of
both teenagers and adults are conclusive. Just like their competitor, Nike, Adidas
provides excellent satisfactions to consumers up to a certain extent because there
are still some who would choose Nike over Adidas. Adidas now with the purchase of
Reebok, has a larger consumer base and this in turn, will definitely increase profits for
the company. In terms of price, Adidas shoes are not too much of a luxury product as
some purchased it before would repeat the decision to purchase again. Even with
small discounts offered. Competition is stiff in the sport shoe industry as many major
companies are actively producing new shoes that are meeting consumer
satisfactions. Adidas is also very vigilant and is actively improving itself to improve its
products and satify the consumers.
In its involvement in the Boston Bombings, Adidas is selling the Boston stands as
one shirts for US$26.20, available at Adidas.com (Dailynews, 2013). The proceeds are
to be donated to One Fund Boston to aid the victims of the bombings. As a major
sponsor of the marathon, Adidas has done more than its fair share of responsibility
to help the victims of such a tragedy.

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Adidas

AG (German pronunciation: [ˈʔadiˌdas] ⓘ; stylized in all lowercase since 1949)[4] is a

Formerly Gebrüder Dassler Schuhfabrik (1924–1949)

Company Public (AG)

Traded as FWB: ADS

Industry Textile, footwear

Founder Adolf Dassler

Headquarters Herzogenaurach, Bavaria

Area served Worldwide

• Thomas Rabe (chairman)[2]

Products Apparel, footwear, sportswear, sports

Revenue €21.915 billion (2018)[3]

Operating €2.368 billion (2018)[3]

Net income €1.702 billion (2018)[3]

Total assets €15.612 billion (2018)[3]

Number of 57,016 (2018)[3]

Subsidiaries • Adidas Runtastic

Adidas is a multinational federation that designs and manufactures sportswear such

Answer and Explanation: 1

It seems that conducting a survey is a very good choice to allow consumers to

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