Sherzod Artikov Brian Ross Clara Fischer Daniel Boudreau

Introduction  Sherzod History SWOT Analysis  Brian Global Expansion Domestic & International Operations  Clara Competitors Industry  Daniel Recommendations

History  Dassler Brothers Shoe Factory split up forming Adidas & Puma  April 18, officially registered as Adidas AG  acquired British rival, Reebok, for $3.8 billion

SWOT Analysis Strengths  First movers in e- commerce  Brand recognition & reputation  Strong foothold in different industries through mergers with other companies. Weaknesses  E-commerce is limited to USA & United Kingdom  Online customer service

SWOT Analysis Opportunities  Increasing demand for online products  Expand e- commerce to global markets  Collaborate with other online retailers to offer Adidas products Threats  Strong competition  Global economic downturn  Increase in the price of providing e-commerce  Price increase in raw materials

Global Expansion  Headquarters: Herzogenaurach, Germany  January 31, 2006: acquisition of Reebok- owning two of the three top brands behind Nike  Made a strong & powerful identity throughout the world for athletes & teams  Types of corporate units: baseball, basketball, soccer, golf, & many others

Global Expansion  Opened its first U.S. based store in 2002 in N.Y.C.  One of the largest sportswear manufactures in Europe  Number two behind Nike worldwide  Sponsors many teams such as the New England Rugby team

Domestic & International Operations  Be on the back of TaylorMade-Adidas golf which has a tremendous uprise: 48% from 2008  World’s largest Adidas wholesale store in Beijing, China  Advertising worldwide increases profit & broadens opportunities  Expanding more will solidify a better relationship with countries

Competitors  Nike  Puma  New Balance

Nike  Largest supplier of sports footwear & apparel, with Adidas following as the 2 nd largest  Publicly traded company that competes internationally  Headquarters: Beaverton, Oregon  Slogan: “Just Do It”  Founded: 1972  Went public in December 1980

Nike  Owns four key subsidiaries: Cole Haan, Hurley International, Converse Inc. & Umbro  Reported a decline in sales for the quarter ending February 28, 2009  Future orders for shoes and apparel have declined 10%

Puma  Emerged from the ownership split between two brothers  Headquarters: Herzogenaurach, Germany  Distributes products in more than 80 countries  Current CEO: Jochen Zeitz since 1993

Puma  During the final 3 months of 2006, profits had fallen by 26%  Due to increased expansion costs  Sales actually rose more than a third  Receives most of its recognition through sponsoring athletics  In the 2008 Beijing Olympics, Puma sponsored a three time gold medalist in track

New Balance  Founded: 1906  Headquarters: Boston, Massachusetts  Privately held company, also sells internationally  Offer their shoes in a wide variety of sizes & widths  Brands owned by New Balance: Dunham, PF Flyers, Aravon, Warrior, & Brine.

New Balance  Manufacturers its shoes in the United Kingdom-produce over 28,000 pairs of shoes per week  Also manufacture in the U.S.  Marketing strategy: not giving shoes a name, rather a number  Most affordable  Does not want celebrity endorsers, rather everyday people

Industry  100 manufacturers, 1,500 wholesalers & 30,000 retail outlets  Combined annual retail revenue= $25 billion  Demand driven by fashion & demographics  Athletic shoes account for 30% of sales in the retail market  Average person in the U.S. purchases more than four pairs of shoes each year, labeling the U.S. as the world’s largest importer of footwear

Short-term Recommendations  Go Green- Produce more eco-friendly products  Create more sponsorships with professional athletes  Better advertisements in the USA

Long-term Recommendations  Keep building brand equity (buying out companies)  Work together with technology (Reebok is currently making the best hockey equipment)  Sponsor a premier soccer team for the World Cup in 2010

Conclusion  Adidas was introduced in 1948  Number 2 sports apparel supplier world wide next to Nike  Revenues of Adidas are approximately 25 billion dollars a year  CEO Herbert Hainer has made promises to take Adidas into the next generation and become the number one sports apparel brand in the world