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Background of Adidas

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INTRODUCTION AND BACKGROUND OF ADIDAS
Adidas was founded in 1920 in Germany by Adi Dassler; later in 1924 his brother joined him to promote his business. Two brothers were successful to create innovative ideas and now Adidas Company has more than 700 patents and property rights. In 1948 two brothers had some kind of conflicts and both decided to split their business, one brother continued Adidas while another brother establish Adidas tough competitors Puma (Market watch, 2010).
Adidas Group comprise of Adidas, Reebok, and Tailor-made. Adidas represent 72% of group revenue while Reebok represent 20% of group revenue, and Tailor-made represents 8% of group revenue (Adidas, 2008). Adidas is world’s #2 designer and distributer of sporting goods behind Nike. Currently Adidas has numerous contracts with food ball and basket ball athletes, golfers as well as New York Yankees. As of May 2010, company operates over 2200 retail stores under the Adidas and Reebok banner (Yahoo finance, 2010).
According to 10k report of Adidas group, their corporate strategy is “to lead the sporting goods industry with brands built on a passion for sports and sporting life style. To generate consumer excitement and enhance brand profitability Adidas group is continually strive by executing a clear strategy i.e. focused on strengthening and developing brands to maximize group’s operational and financial performance and create shareholders value.”
Similarly, corporate strategy was “focused on extending its leadership in products offered by each of its three business segments, expanding controlled retail space through its network of company-owned stores, and achieving efficiency in its global supply chain processes and activities.” Therefore, Adidas’s corporate strategy focuses on their core strength in the athletic footwear and apparel business. The Adidas group will offer the variety of…...

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