Adidas Case

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Category: Business and Industry

Date Submitted: 11/28/2012 05:28 PM

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1. What is Adidas' corporate strategy? Was there a common strategic approach utilized in managing the company's lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring?

Adidas’ vision is to position itself as the world`s leading sports brand. For this they use a now very famous slogan “Impossible is Nothing”, which demonstrates a positive attitude, and that they can do anything which has been very attractive for consumers. Adidas's corporate strategy is basically to develop suitable sports footwear and apparel for athletes dedicated to skills and to maintain its level of marketing with the best athletes in the world along with a premium price strategy.

Prior to 2005-2006 restructuring, in 2001 Robert Louis-Dreyfus announced he was leaving his position at Adidas-Salomon, the company was not at a good financial moment. Adidas looked to divide into too many areas and there was smaller focus on product specialization compared to Nike, its major rival. They narrowed to two marketing segments for their brand categorization so they could focus on core competencies. These segments are: Sport style and sport performance. With the restructuration they introduced new footwear and clothing products, they reduced their costs and increased marketing strategies as adding more publicity and signing contracts with more athletes.

The corporate strategy hasn’t change that much with the restructuration, as it has been from the beginning to give suitable sports footwear and apparel for athletes and to innovate by powerful marketing campaigns sustained with recognized athletes all over the world. A clearly-defined, segmented approach towards distribution and a strategy of premium-price is what is leading the company towards its mission.

2. What is your evaluation of Adidas' 1998 acquisition of Salomon SA? Did the acquisition achieve the Robert Louis-Dreyfus' objective of putting together...