Adidas AG is one of the world leaders in sportswear, equipment and accessories. In 2011, the company recorded a net income of $934.3 million, an increase of 18.3% over fiscal year 2010. Adidas’ excellence stems from its strong focused differentiation strategy. Focus on research and development has facilitated continuous development of new products and it plans to leverage its strong brand portfolio to create profits from its innovative products and by establishing robust retail operations.
adidas’ goal is to be the leading sports brand in the world. One major lever to achieve this is the brand’s broad and unique product portfolio spanning from apparel and footwear for professional athletes to premium fashion. The company’s leading market position is built on its portfolio of strong brands like adidas, reebok, and TaylorMade. It allows adidas to address multiple consumer needs, exploit market opportunities from various angles as well as be less affected by one-dimensional market risks. adidas’ commitment to product innovation by focusing on research and development differentiates the brand from competitors and provides a solid platform for future growth. 1) Distribution:
Strong brand portfolio to establish a strong retail presence and increase profit margins by increasing retail sales as a percentage of total sales. Adidas currently operates 2,041 stores for the adidas and Reebok brands worldwide. Adidas’ strong brand and enhanced retail presence generates brand loyalty, which enables easier customer recall and gives adidas a competitive advantage. Revenue: $18,580.2 million; 11.3%
E-Retailing Retail is one of the more visible market sectors on the Web. In retail, merchants sell products and services directly to a buyer. E-retail, also called e-tail, occurs when retailers use the Web to sell their products and services (Sanchez 16). E-retailers constantly challenge the old ways of conducting business as they bring new products and services to market. All e-retailers, ...
Operating profit: $1,407.7 million; 13.1%
170 subsidiaries in Europe, the Americas and Asia
Wholesale, retail and other businesses
2) Research and development:
$160.1 million in R&D