Addidas Ag Case Study

I. Introduction- Adidas AG

Adidas has its roots in 1920 when German baker Adolph Dassler, began trying designing footwear for athletes competing in soccer, tennis and t other events. In 1924, Adi Dassler’s brother, Rudolph Dassler joined him to established a shoemaking factory. The company continued to develop innovations in athletic footwear for several years. However, on 1928 the company was dissolved after Adi and Rudolph entered into dispute. In 1949, Adi registered the trademark of Adidas. Over the years the company continued to grow. Today Adidas is the second world largest seller of sporting goods [ (Thompson, 2010) ]

II. Adidas’s Corporate Strategy

Adidas is organized under three based units; Adidas, Reebok, and TaylorMade-Adidas Golf. The company corporate strategy consists in a combination of related and unrelated diversification strategies. Adidas executes this strategy by the acquisition of companies who are doing well in the sport business. The strategy focal point consist in differentiated image for the products offered by each of its business, expand controlled retail though its network of company-owned stores, and achieve efficiencies in its global supply chain processes [ (Thompson, 2010) ].

Adidas implemented differentiation strategies by constantly develop new products. The company objective is to develop “at least one major new technology or technological evolution per year” (Adidas Report, 2008). For instance, TaylorMade Golf introduced its r 7 CGB Max Limited driver in 2008, Adidas athletic footwear and apparel division introduced, SuperNova and Response running shoe families and Stella McCartney gym and yoga apparel collection in 2007. In addition, Reebok introduced Trinity KFSII running shoes and RBK Edge uniform systems for hockey in 2007. Furthermore, the company built activities to create a different image for its three businesses against its competition. The company creates this image by being partners with...