Adidas Case Study

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ADIDAS CASE ANALYSIS Michael Gibbons – W - 7:10 – 10:00 Adidas 1. Adidas’s corporate strategy is derived from its three component brands – Reebok, Taylor Made Golf and Adidas. Their strategy is to expand their retail space by creating a differential image for the products and becoming a leader in innovative product design. The three different entities all have primary strategies that focus on a primary product line. Adidas’s innovative product designs have led the company to set a goal of developing at least one primary line of product per year. They utilize their strategies daily allowing them to become a recognized leader in the global market. Adidas struggled with a strategic approach prior to the 2005-2006 restructuring. They struggled with managing a wide array and diverse line of business. Adidas has numerous product lines, from ski equipment, to bicycles, to golf supplies, to sports apparel, and to tennis equipment. However, Adidas opted not to put their name on those lines of business. Adidas was and still is a noticeable name in the market and with them not putting their name on those product lines, hurt their profit gains. Adidas has changed their strategy significantly after their restructuring of 2005-2006. In 2006, Adidas acquired Reebok, which allowed them to focus on their strength’s of golf supplies, sports apparel, and athletic shoes. The restructuring and acquisition has allowed Adidas to grasp a larger share of the market by offering a diversified product line. The restructuring of Adidas has allowed them to offer a larger product line, which allows them to gain a larger market share and receive larger profits. 2. Reviewing the lineup of Adidas in 2009 has proven that they continue to show growth by offering a multiple product line. However, they still were unsuccessful in catching up with the world’s industry leader of sporting

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