Objectives:
To understand customer trends with respect to sports products.
To identify the main strategic issues and customer behaviors faced by Adidas in maintaining their current global competitive position.
To evaluate potential strategic options that Adidas should consider in order to sustain and develop their global competitive positioning.
To discuss the implications of these options for the strategic management decisions of the company.
To make appropriate recommendations for the future.
Introduction:
Adidas-Salomon is one of the major sports apparel manufacturer. It consists of Reebok Sportswear Company, Taylormade Golf Company, Maxfli Golf and Adidas Golf. It is the second largest sportswear manufacturer of the world after Nike. The company was founded by Adolf (Adi) Dassler in 1948 and is named after him. But the story started way back in 1920 when Dassler and his brother Rudolf Dassler started making shoes Herzogenaurach, near Nuremberg. Rudolf Dassler is also the founder of other sports goods manufacturer company, Puma. The group is actually named as Replica Adidas Shoes. One of the most respected sports brand - Adidas offers a wide range of sports goods for key games such as soccer, Tennis, Running, Golf, Basketball, Rugby, Cricket, etc.
Adidas group owns brands like Adidas, Reebok, TaylorMade (Adidas Group Website). The strong brand image of Adidas has increased its brand loyalty which in turn has led to increase in profits. It is the brand reputation which has helped Adidas to be the market leader in almost every part of the world. Adidas brands are not only popular in Europe and USA but they have also captured most parts of Asia now. According to Shanley, 2006 (Helmsman Online), Adidas emerged as a market leader in Japan in 2005 replacing Nike for the first time. According to a report of Adidas, it has maintained its top position in Europe till date.