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Adidas: Sprinting Ahead of Nike

BEM 106 – Winter 2009 Georgios Dogiamis, Narain Vijayashanker

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Table of Contents

Executive Summary………………………………………………………………………………………………………… 3 Introduction to adidas AG………………………………………………………………………………………………. 5 Six Forces Analysis …………………………………………………………………………………………………………. 5 Rivalries …………………………………………………………………………………………………………………. Substitutes………………………………………………………………………………………………………………. New Entrants …………………………………………………………………………………………………………. Customers bargaining power …………………………………………………………………………………. Suppliers bargaining power ……………………………………………………………………………………. Complements …………………………………………………………………………………………………………. Current Strategies………..…………………………………………………………………………………………………. 5 6 6 6 7 7 7

New Strategies…………..…………………………………………………………………………………………………… 9 Develop the µa (‘micro-A’) , the adidas ‘Smart Shoe’………………………………………………. 9 Work to Rebrand Reebok Image………………………………………………………………………………. 11 Focus on Emerging Markets…………………………………………………………………………………….. 13 Focus marketing efforts at large sporting events on key products……………………………. 14 Conclusion……………………………………………………………………………………………………………………….. 14 References ……………..………………………………………………………………………………………………………. 15

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Executive Summary adidas Group, the world’s second largest producer of sporting apparel has had a long and rich legacy of producing some of the highest quality and most technologically innovative sporting equipment particularly footwear. Champion athletes and sports teams trust the three stripes of adidas for helping them to achieve outstanding performance when they need it most. A world leader, adidas commands nearly a quarter (22 %) of the worldwide athletic footwear and apparel market. In the American sporting footwear and apparel market, the largest market for sporting footwear and apparel in the world, adidas holds 22% market share. In the race to be the world leader in sports apparel, adidas trails behind only Nike, which holds a worldwide market share of 33%. adidas may...