adidas dini

7/16/2019 Adidas Dini

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VEDINI KANZI WIDYA 224412122

LOGISTIC – C

Adidas History

Adidas was founded in 1924 in Germany by two bothers Adi and Rudolf Dassler. The company was first named Dassler shoes and later became

Adidas. By the Dassler shoes being seen in the Olympics this really helpedthe company get it’s name known. However, in 1948 Rudolf Dassler



leaves to start his own company which is now known as Puma. OnceRudolf left his brother came up with the famous three stripes logo andchanged the name to Adidas.

The 3 stripes were created to keep the foot stable, but ended up being the

logo. Throughout the years Adidas was seen in the Olympics, and it wasthe leading brand making their shoes highly sought after by Olympicathletes. In 1978, Adi Dassler passed at age 78 and his wife Kathe ran thecompany. Six years later Kathe passed and the company was left for theirson Horst Dassler to run, and three years later Horst passed at age 51.After Horst’s death Adidas ran into some major financial problems, andlater Bernard Tapie comes to make an attempt to save the company.

Well to be HONEST, later down the road a hip-hop group named Run-DMCcame and put Adidas on another level just like Jordan did for Nike, and therest is HISTORY! They even made a song called "My Adidas", and it was ahit all around the world. After Run-DMC came to Adidas they even hadtheir own signature line. Run DMC is still making Adidas money today justlike Jordan is still making Nike tons of money......these guys are truelegends to the "Shoe Game".

Adidas has worked with many famous people and has a signature shoeline for Stan Smith, Kevin Garnett, Tracy McGrady aka TMAC, Missy Elliot,and many others.

Competitive advantage Adidas

With A unique product portfolio covering accessories, apparel andfootwear for professional athletes to premium trendy fashions, allowsAdidas to cater to multiple customer needs and demands. This providesAdidas with the opportunity to exploit various markets locally andinternationally. Together with Adidas's commitment to product innovationand its rich heritage aids in differentiating the brand from its competitors.

Like most retail giants Adidas markets its products in accordance to the

seasons; for instance A heavy emphasis is placed on summer apparel

when its warm outside because there is a greater demand for short and

lighter clothing. Their plan is to not only market their product in

accordance to the weather changes but also to the changes in the various

sports seasons. Adidas has a great advantage to appeal to all markets

because of the variety of products they distribute caters not only to men

but also to women and even children.

In order for the company to sustain its dominance and appeal in the

industry Adidas ever so often adjusts to the times, trends and changes inconsumers demands. Endorsing highly publicized Athletes, Socialites and



Performers aid to market the brand and also provides a competitive

advantage over its competitors.

Technology

Adidas introduces modern approaches to doing new and old things, Adidas

join into technology by make up the world’s first “smart shoe”, adding a

microchip inside the shoe and wireless mp3 player. Adidas uses hot melt

system of production which is environment friendly. And the packaging

system, storage system and transportation of products are considerably

advanced comparing to other companies.

Degree of Rivalry of ADIDAS

Adidas is competing in the market with many rival firms including the

world leaders Nike, PUMA, FILA etc. The rivalry among existing

competitors is pretty high in the sports and footwear industry as

compared to other similar industries. ADIDAS has adopted several

strategic measures for their market growth such as acquisition of an

existing competitor, building partnership etc. ADIDAS has grown into a

world leader through several acquisitions; namely Sports Inc., Salomon

AG, Reebok etc. In 2005, the ADIDAS acquired world’s third sports brand,REEBOK and this was a remarkable event in the history of the company,

as it paved the way for the expansion of its market share. The Company

ADIDAS has also benefited from the strategy of on-line sales. Though stiff

and strict competition exists, the company growth is based on its brand-

equity and brand identity. As ADIDAS deals with products of low product

differentiation, the degree of rivalry is so high. Since the switching costs

are low, the rivalry among competitors is very high. When dealing with

products of competitive nature, the firm have to be highly innovative and

the technology used should be of very advanced and sophisticated. This

brings the fixed cost high and in turn increases the degree of rivalry



among the competitors. The diversity of rivals, that is; the rival firms like

NIKE, PUMA are of different cultural, historical and philosophical

backgrounds and so the rival moves are very difficult to predict.

Adidas Rivals:

Value Chain AnalysisAdidas maintains its primary activities so well since its start. The inboundlogistics and outbound logistics are so good in regard to adidas. Theyhave a specified inbound logistic chain for moving raw materials and unassembled goods inside the company .Moreover the outbound logisticssystem for the transport of finished goods is very fast and timely. The coreoperations, marketing and sales have been outstanding which helpedadidas to be one of the major players in the sector. The research teamsfor the development of new innovative development of new products forthe changing markets has been sustainable and helps the company well inmaintaining its market position. Adidas has introduced e sales for the firsttime in the sector and still manage to be the strategic market leader inthis regard. Adidas monitors the quality of service,staff training andcustomer satisfaction throughout the franchisees as a part of their valuechain.All the supporting activities in the case of adidas like

procurement,research and development,human resource managementand infrastructure development are well carried out keeping in mind thecompany's reputation,brand value and market status. The companyalways emphasis on procurement of materials and all related activities inthe cheapest possible mode, making maximum use of the global sourcingand offshoring strategies. The company has moved a part of itsmanufacturing activity to china and Vietnam,taking account of the labourcost. Moreover the employees are well treated and kept with maximumsatisfaction. The company believes that,its employees are very vital formof resource for them. The company spends a large amount on technologydevelopment,and maintaining its infrastructure,accounting,control and

planning and management information system.SWOT analysis of Adidas



StrengthsAdidas is one of the major company in the sporting goods industry. Thekey strengths are listed below-1)Brand value-Is considered as one of the most successful brands since

long time and is figured in the top 100 most valuable brands in the worldfor the year 2009 by 247wallst.2) Strong and proven marketing strategy and networks-strong franchisingnetworks and company owned outlets throughout the globe.3) Leading market position in the industry-One of the largest player in theindustry. The company dominates in most of the NON-US countries andthe reebok brand helped to gain 20% share of the footwear industry in US.4) Diversified operations in different parts of the world-The company'sstrategy differs in different parts of the world.5) Strong on-line presence-The company introduced the concept of on-linetrading in this particular sector and manage to maintain the leadership.6) Competitive pricing

Weakness1) The bad performance of reebok in non US markets.2) High cost structure.3) Limited product line.

Opportunities1) Change in consumer lifestyle and growing global footwear market-Withchanging lifestyle more and more people are using sports goods and

moreover according to studies by different institutions,the global footwearmarket is expecting a steap increase especially in the Asian market.2) Growing market-according to studies carried out by different industrialanalysis institutions,the sector is expected to grow to $72 billion in 2010which is a hike of 12% when compared to 2005.3) Sponsoring major events-Company has announced sponsorshipagreements with Australian Olympic committee,Japan footballassociation,FIFA world cup football 2010 and 2014,merchandisingpartnerships with NBA and so on which they can utilize maximum for theirpublicity and growing their market.

Threats1) Raw material prices are increasing rapidly2) forged products-imitation products are abundantly available in Asianmarkets especially in china and south east Asia.3) Tough competition in the sector-puma Ag Nike close rivals

Adidas SWOT



Supply Chain Structure

The adidas Group has outsourced most of its production. We work withmore than 1,100 independent factories from around the world thatmanufacture our products in 62 countries. Our supply chain is global andmulti-layered, with many different types of business partners, some of who are directly contracted factories, and others who are not.

In 2012, the top five countries per region by number of supplier siteswere:

• The Americas: United States, Brazil, Canada, Argentina and Mexico• Asia: China, Vietnam, Japan, Indonesia and Korea

• EMEA: Germany, United Kingdom, Italy, Turkey and Spain

Our influence in terms of social and environmental compliance is linked tothe strength of our partnerships, and is often proportional to the scale andstability of the orders placed with our suppliers.

Supplier factories by region in 2012 (excluding own factories and licensee factories)

37 Adidas

innovation:



1. Stromtrooper Sneaker

2. Adidas Embraces Grafitti

3. Footwear and Driving

4. Supercar Spring Shoes

5. Sporty Fashion

6. Vertical Soccer

7. The Adidas Footbal Cathedral

8. The Adidas Originals

9. Relauncing Iconic Shoes

10. Star Wars Sneakers

11. Olympic Branding

12. Celebrity Sneaker House Parties

13. Shop of the Future

14. Cuztomizable Hi-Tech Soccer Shoes

15. Adidas Launces Store With The Help Of Ducks

16. Adidas Celebrates Originals

17. BBQed Shoes

18. Classic Logo Mods

19. Athletic Couture

20. Movie Themed Shoes

21. Soccer Player Haidors

22. Cityscape Sneakers

23. Diamond-Studded Sneakers

24. Deconstructed Sneaker Art

25. Runway-Worthy Athletic Shoes

26. Virtual Shoes Fitting

27. July Footwear



28. Formal Gymwear

29. Electric Green Sneakers

30. Zipper Stripe Sneakers

31. Leopard Print Sneakers

32. Adidas Originals Spring/Summer 2007 Campaign

33. Viral YouTube Ad

34. Virtual Music Fest

35. Silver Sneakers

36. Stella McCartney Joins Adidas To Release New Fashion Line

Adidas Group Stategic Pillars :

Adidas aims at market leadership in Poland with UEFA EURO2012™



Adidas Group CEO Herbert Hainer announced that the adidas brand plansto use the UEFA EURO 2012™ as a platform to achieve market leadershipin Poland by 2015. In addition, adidas aims for market leadership in thefootball category in Poland in 2012. In the Ukraine, where adidas isalready the clear market leader, the brand wants to further expand its

leadership position.

“As the Official Partner of UEFA EURO 2012™, we will use the event toreach market leadership in Poland by 2015 and take over categoryleadership in football in 2012,” said Herbert Hainer, CEO of the adidasGroup. “This is the first time a major tournament like the UEFA EURO™will be hosted by Poland and the Ukraine. We are very excited about theupcoming event and plan to leverage UEFA EURO 2012™ internationallyto showcase our brand and our innovative and exciting products.”

As the Official Sponsor, Supplier and Licensee of UEFA EURO 2012™,

adidas provides the Official Match Ball and supplies the equipment for allofficials, referees, volunteers and various youth programs such as ballkids and player escorts. First products for the UEFA EURO 2012™ will beavailable for consumers at the end of 2011.At the media event, Herbert Hainer was joined by Artur Czerwonogrodzki,Country Manager for the adidas Group in Poland, who shared details aboutthe Group’s business in Poland and the current status of its preparationsfor UEFA EURO 2012™.

Adidas purchasing, power, parity

Whereas adidas has only 0.005 per cent of our global supply chain inBangladesh, which is a very low wage cost country, we source a lot moreof our goods from other parts of Asia. Although the data is a couple of years old, I thought I would share with you the International LabourOrganisation’s summary of the Purchasing Power Parity of minimumwages in selected countries in Asia. These are countries where 80 percent of our global production takes place. The figures for PPP given in thegraphic above are US dollars per month.



Adidas Global Operations in go to market process

Adidas Suppliers by region (2011)

Shareholder structure



Five performance benefits

To be relevant to our target consumer as the performance brand, we haveidentified five consumer benefits which will form the basis of ourinnovation pipeline for the next five years. We believe that serving thesebenefits will keep us at the forefront of the industry, building brand imageand allowing us to leverage our technologies and positioning seamlesslyacross categories.

• Faster: To help athletes be faster, we will focus on reducingproduct weight, making the lightest products on the market. Thefranchise will be built with the adiZero platform. Already prominentin 2010, this will be a key initiative for 2011 where we will introduce

even lighter products in football, basketball and American football.• Stronger: With adiPower, we intend to create a franchise to own

power enhancement in sport. This platform will include productssuch as Predator in football, Barricade in tennis and Techfit apparel.

• Smarter: Through interactive products, we will help athletes andconsumers of all fitness levels to be, train and perform smarter. Wework with the best athletes and coaches around the world. Throughplatforms such as miCoach, we will make this knowledge availableto every consumer, helping them to define and work towards theirindividual goals.

• Cooler: These products will be geared to help the athlete to alwayshave the right temperature (cooler, warmer, wind protection, etc.). This will be served through the Clima franchise, which is already oneof our best-known franchises around the world.

• Natural: Natural motion is a major trend in our industry. Drawingon our long history, experience and understanding of the shape of the foot and movement of the body, we will create a new platformof products around natural motion over the next five years



Ensuring cost competitiveness

Global Operations focuses on further optimising product creation through

an efficient material and colour selection process. This, coupled withincreased automation in manufacturing, will enhance productivity, shortenlead times and improve overall quality. These improvements are expectedto enhance profitability for the Group and ensure we provide ourconsumers with the best value proposition possible.

In 2011, a joint effort between Global Operations and Global Brandsyielded initial results on consolidating material and colour numbers, whichwill already start to deliver benefits in spring/summer 2013. In the area of automation and manufacturing efficiency, pilot lines were established inseveral factories for most categories. Parts produced per hour for these

lines have improved in some instances by almost 40%. The function willcontinue to look for opportunities to semi-automate process steps inproduction where possible, while supporting this effort with theendorsement of lean manufacturing principles throughout its supply base.

Operating cash flow components

Key financial metrics



New industry best practice planning process

Retail Space Management to drive efficiency



Retail Space Management (RSM) comprises all business models helpingGlobal Sales to expand controlled space in retail. The Wholesale functionis cooperating with retailers along the entire supply chain to bring best-in-class service all the way through to the point of sale. By helping toimprove the profitability per square metre for the Group’s retail partners

as well as improving product availability, we can achieve higher customersatisfaction, thus driving share of retail shelf space.

The three predominant models to drive the success of RSM for the adidasGroup are Never-out-of-stock, FLASH collections and franchising.

Never-out-of-stock (NOOS): The NOOS programme comprises a corerange of basic articles, mostly on an 18 – 24 months lifecycle, that areselling across all channels and markets. Overall, the NOOS replenishmentmodel secures high levels of product availability throughout the season,allowing for quick adaptation to demand patterns. Retailers have toprovide dedicated retail space, co-invest in fixtures and fittings andcommit to a “first fill” representing about 25% of total expected seasonaldemand to participate in this programme. In return, customers can profitfrom significantly reduced inventory risk on these products. Most NOOSarticles are on an end-to-end supply chain, thus limiting the adidasGroup’s inventory risk as we re-produce following customer demand.

FLASH collections: The FLASH programme consists of pre-definedcollection packages that are delivered every 4 – 6 weeks to retailers’doors, including basic point-of-sale promotional materials to promote

dedicated retail space provided by the retailer. All articles of the FLASHpackages are exclusively developed for this programme with the intentionto bring freshness to the retail space. With a short development lead time,we are able to reflect recent product and colour trends in the FLASHrange. As no samples are available during sell-in, the customers buy into abusiness proposition rather than traditionally selecting individual articles.In return for this commitment, the retailers have the right to selectivelyreturn articles of every FLASH collection that have not sold out during thedefined retail window. Overall, the FLASH programme helps to improvebrand image while limiting inventory risk for the customers. The FLASHprogramme has been started in 2010, with full-scale rollout planned from

2012 onwards.

Franchising: Mono-branded store franchising is one of the Group’s primegrowth opportunities, as it offers superior brand presentation. Franchisestores are financed and operated by franchise partners. The adidas Groupnormally contributes to the costs for brand-specific fixtures and fittingseach store has to be equipped with.

Further, we support our franchise partners with a comprehensivefranchise concept, including range propositions, IT systems, training

concepts, and guidelines for store building and store operations. Thisensures that the quality of the brand presentation and the service offered



to the consumer are at all times high and comparable to our own retailstores.

Harmonisation and standardisation of processes to exploitleverage

While understanding that market and consumer needs requiredifferentiated distribution policies, the establishment of the Global Salesfunction is also an enabler to further leverage the size of our Group andreduce complexity by implementing best operational practices across ourwholesale activities. The harmonisation and standardisation particularly of back-end processes can help to further reduce cost through simplified ITsystems and applications. Similarly, and already started in Europe, we arerolling out a trade terms policy that rewards customer performance eitherby higher efficiency (e.g. in logistics) or better sell-out support (e.g. bypoint-of-sale activation). As part of this effort we will harmonise tradeterms definitions, and we have established regular reporting, deliveringmeaningful benchmarks that allow us to tightly control our investments.

Wholesale Strategic Pillar



Recrutmen and selection

Adidas has a clear mission: "To be the leading sports brand in the world".

The Adidas Sport Performance division has one guiding principle: to equip

all athletes with product to achieve their own "impossible". While Adidas isproud to support athletes in all sports, the Sport Performance division ismainly focused on four key categories: running, football, basketball andtraining. ??

"Adidas Group is growing very rapidly which means an effective global

talent management strategy is absolutely critical," commented Steve

Bonomo, Head of Recruiting at Adidas Group "We are implementing Active

Recruiter to greatly speed up and increase the efficiency and

effectiveness of our recruitment process, which will in turn help to

enhance our employer brand and ensure we attract, hire and retain

talented people."

Most of adidas's senior executives from German, Canada and USA

whereas most successful western corporations employ more diversely at

the corporate level. (Takeuchi et al, 2008)

Furthermore, this explains adidas's success in all aspect of their business.

As a result, since its foundation, Adidas has been able to achieve market

advantage by keeping up with it technology and more importantly beingahead of its competitors.

Adidas has a very rigorous hiring process and often only recruitthose who have had higher grades and are smart and verydedicated to the sposrt industry. But it can be argued thatintelligence isn't always the key to excellence, particularly in anindustry that is influenced by changing technologies as well ascompetition. Adidas should aim to make the organisation attractive

to potential candidate by carrying out an analysis of the labourmarket in all the local areas that the company operates in. Pay andother benefits might not be the only factors to consider. Thecompany could introduce flexible working hours in the UK forexample and where mostly men are employed, they could considerhiring women.



Competitive Adventage my self :

I’m a student who can blendin to everyone.I also diligent and enterprising

personina unique learning process that I have oneI have aloud voice with high

tone. I like the organization and confident and I can use acomputer properly.

adidas dini

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