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Adidas, still in the race

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  1. Introduction
  2. SWOT Analysis
    1. Forces
    2. Weaknesses
    3. Opportunities
    4. Threats
  3. Strategic recommendations
  4. Conclusion

Adidas, the famous brand with three stripes, has been a challenger since its inception. Indeed, its innovations and product launches in new technologies, have always taken place after its main competitor, Nike.

Adidas is a 60 years old brand, which need to renew its image so that it does not seem too rooted in the past. Indeed, some athletes do not consider Adidas an innovative company, and its shoes can seem outdated. Finally, the financial crisis has not spared Adidas, which has had to revise its profit forecasts. The difficulties encountered by its subsidiary Reebok have forced it to lay off 1,000 people. Some shops are also expected to close their doors.

One is learning that more and more industrial companies are integrating services into their offering, to differentiate themselves and offer more value added products. Adidas, the designer and manufacturer of shoes clothes and equipment for sports, has not escaped this trend.

To improve its image and increase its sales, Adidas needs to find a new direction. Thus, in addition to offering products with high added value, it chose to be a part of the training of athletes. This study will analyze how Adidas is involved in the lives of athletes through the development of innovative services.

In 2008, higher restructuring costs at Reebok and emerging markets has reduced by almost 80% operating profit in the first quarter of Adidas. Financial analysts on average expected a profit of more than three times higher.

The group said they did not consider transferring Reebok, bought in 2006 to strengthen the position of the group and face competition from world leader Nike.

In 2009, Adidas reported a profit higher than expected in the second quarter and believes that the worst of the crisis is past, while maintaining its annual guidance.

The main competitor in terms of Adidas products is Nike, the leading sports equipment industry. Thus, Nike currently controls 31% of world market of sports shoes against 28% for its competitor. Nike has more over been the forerunner in recent years in related services.

Regarding football, Adidas has number one market share (34%) followed by Nike and Puma, the third largest sporting goods company in the world.

In the field of institutional partnerships, Adidas Nike differs by focusing on agreements with major events, a strategy that is not the latter. The German brand has been since long asscoaited with the Olympic Games,the football World Cup and Euro Cup. These operations place it as a legitimate actor and integrated into the world of sport, and give it an interesting business component.

Finally, to compete with Nike, the brand has developed a 3-band technology mobile coach that all athletes can use. This product is associated with an Internet service that allows them to monitor their performance and measure their progress.

Adidas made its customers consolidatedplayers that is to say active consumers during the stage of product design. The Concept Stores allow Adidas to no longer be mere sellers of sport, but a real showcase of their technology. Precursors being provided at the technicality that fashion, these stores allow thecompany to have a good brand.

Tags: Adidas, competition with Nike, innovation in marketing, production

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