2 A name that stands for powers in all types of sport around the globe. The adidas StoryA name that stands for powers in all types of sport around the globe.adidas is registered as a company, named after its founder: 'Adi' from Adolf and 'Das' from Dassler.The idea was as simple as it was brilliant.Adi Dassler’s aim was to provideevery athlete withthe best possible equipment.It all began in 1920, when Adi Dasslermade his first shoes using the fewmaterials available afterthe First World War.
3 The adidas product range extends from Shoes, Apparel and Accessories TodayThe adidas product range extends fromShoes, Apparel and AccessoriesFor basketball, soccer, fitness and training to adventure, trail and golf.
4 Logo The shape formed by the bars represents a mountain indicating the challenge to be facedandthe goals to be achieved.
5 business ownership Form of An international corporation withshareholders, customers,suppliers, employees andExecutive and Supervisory Board membersfrom all over the world.The name of the Corporation isadidas-Salomon AGIt is a listed Company (Listed in Deutsche Börse stock market)
6 What to Produce adidas Sport Performance -Professional sportswear, equipment-Functional and innovative products~Basketball~Football~Golf~Running~Tennis~Cycling~Accessory (watch, sunglasses)
7 adidas Originals - Causal wear - Perfect fusion of sport authenticity and global street style~shoes~apparel~bags
13 Factor of production Labour adidas employs many employees. In 2006, the new adidas Group has more than 25,000 employees.Employees belong to labour because they work for adidas to run the internal and external business .
14 Capitaladidas’s buildings, machineries, fabrics, and other raw materials are capital.It is because they are man-made resources used to assist production.It is private capital because it is owned privately and used for production.
16 Demand and supply~ As adidas is a brand with long history and good quality,~ It developed into a sports and fashion label gradually.~ It had a large number of supporters to buy adidas’s products.~ Elasticity of demand is inelastic.~ The price of its products ~TR will~ Gain > LossAs a result the total revenue will increase.adidas products (apparel, footwear)
17 Demand and Supply ~As accessories are not daily necessities, ~the elasticity demand of adidas’s accessories is more elastic than the footwear and apparel~it is elastic.~When the price of accessories decrease , the TR increaseadidas’s product (accessories)
18 VS Competitive environment ~Non price competition Advertisement For example :Nike adidasVS
19 Market Structure adidas belongs to monopolistic competition Reason :1~ A large number of sellers and buyers2~ The goods sold are heterogeneous3~ Imperfect information of the market4~ The sellers are price-searchers5~ Non-price competition is involved
20 SWOT Strength : 1 International status is high. 2 Has large market sharesbecause it has many lines and branches3 Gain benefit from economies of scaleLarge scope of specializationMaking efficient use of modern machines6 Getting bank credit and capital at a lower interest cost7 Advertising costs are spread over a larger output8 Market diversification
21 Weakness : Opportunity : Threat : 1 Lots of substitutes ( e.g. Puma , Nike )2 Reduce efficiencyDue to the problems of communication and co-ordinationOpportunity :1 Open more lines such as elderly2 Expand the market of women and children3 Explore more market in developing countriesThreat :1. Many Competitors
22 ConclusionAs Hong Kong is now facing the problem of ageing, the market of the elderly will become larger.Therefore, we suggest adidas to open more production lines for the elderly in order to increase its market size and profit.Moreover, women are fashion-conscious, so their demand for this fashion label will increase .Therefore, adidas should increase its market share in women’s market.Nowadays, sports become more important for children. The parents will buy more sports hardware for their physical development, adidas should focus on children market also.As a result, the profit of adidas will increase!!!!
23 Sources: http://www.adidas.com The ENDThank you for your attentionThe project is done byChristy LawKennis LauGladie NgErica TamSources: