This helps promote a holistic and innovation-focused culture which gives deeper consumer insights, while also fueling creativity and synergies across the organization” (Adidas-group, 2015). Despite the increasing amount of R&D expenses, the R&D/sales ratio is almost the same between 2010 and 2017. Case Study: adidas Revolutionizes Internal Workflow with Virtual Reality Vive Team • 11.14.19 HTC Vive and The Wild collaborated with adidas , one of the largest sportswear manufacturers in the world, to help streamline internal collaboration and workflow processes with virtual solutions. Between 2010 and 2017, Adidas’s sales increased from € 11.990 billion in 2010 to €21.218 billion in the year 2017. Two years later, the Olympic Games were held in Munich. In addition to their internal activities, this team is engaged in long-term and exclusive partnerships with well-known third parties. We define risk as the potential occurrence of an external or internal event (or series of events) that may negatively impact our ability to achieve the company’s business objectives or financial goals. As for the pages per visit, Adidas was able to record an average of 5.15 pages per visit, whereas the average is 5 pages per visit. Adidas is the first company, in the sports industry, to invite athletes, consumers, partners, and customers to be part of the company’s brand. ROI increased from 8.94% in 2010 to 14.25% at the end of 2017. Adidas’s Facebook main page detects the geographical location of its customers, and automatically the language and the website of the company change based on their geographical location. A case study is a story about something unique, special, or interesting—stories can be about individuals, organizations, processes, programs, neighborhoods, institutions, and even events. it is quite clear that Adidas is willing and investing to strengthen its position and boost their performance in online selling. 23 May 2019 1:49 pm As for Facebook, the “shop now” tool is available for all kinds of pages except in Adidas Basketball, Football, Rugby, and Reebok. Back to Instagram and Twitter, as mentioned previously, these pages have an additional category that is related to the customer’s geographical areas. However, it is clear that the value of sales is not continuously increasing. Whereas, the message option is just available in three pages. In 2019, Adidas' … During this period, Adidas was able to be present from the court to the catwalk and the stadium to the street, they offered apparel and footwear for every sport, every fashion, and every style. Lastly, for YouTube, the company’s strategy is a bit different from the other social media platforms. Adidas Case Study:. Your name Your ... adidas AG. On the other hand, and after dominating the fitness and aerobics wave movement in the 80’s, Reebok was able to follow back the old track and become the best fitness brand in the world in the year 2011. His first trial was a “spiked shoe” which could be used for multiple athletic events. This surge, as explained in Adidas’s annual report, is the result of the increase in the sales of Adidas Originals and Y-3 products (Adidas-group, 2015). (Adidas-group, 2018). Yet, due to the lack of adequate information, it is not possible to state whether this duplication of geographic-based pages boosts the company’s reach to its customers, or not. Adidas is known most prominently for its range of Shoes, but the brand is also a manufacturer for clothing and accessories. For that reason, it was considered the year 2010 as the beginning of the social commerce era for Adidas. the company’s profile, history, and performance analysis. Add to bookmarks. ▪ Speed: the first true fast sports company — fast in satisfying consumer needs, fast in internal decision-making. adidas Case Study LinkedIn is a game changer for us in Asia because it enables our recruiters to reach out to passive candidates directly through a trusted platform. Corporate Finance 2019 | adidas Case Study: Increase Cash Flow" by we.Media by we.CONECT on Vimeo, the home for high quality videos and… During the 1980’s, the US shoe market was dominated by German firms. Would you like to get a custom case study? The German national football team faced the unbeatable Hungarians in the World Cup final, where they won much more than just a trophy. Adidas’s innovations were not only limited to footwear, but also, they included any possible sports equipment. Moreover, Adidas’s CEO mentioned, during an interview with CNBC, that the company’s target, from e-Commerce revenues, is €4 billion in the year 2020. As stated in their website, the company’s mission is to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. Generally speaking, based on the figure, ROI faced an increase during the social commerce era. Adidas Case Study Essay. However, I considered the beginning of the social commerce era when Adidas opened its first social media account. He was able to convert the company from a “sales driven” to a “marketing driven” company, and track Adidas back to its growth path. After going public, Adidas performed its first acquisition in 1997 by acquiring Solomon group and its brands. ▪ Open Source: the first to involve athletes, consumers, and partners as part of the company’s brands. Figure and Table show clearly the increase in R&D expenses through the period between 2010 and 2017. Two years later, the company decided to adopt e-Commerce and offer their products on the company’s official website. I can divide the history of Adidas company as the first era, before e-Commerce, refers to the period where Adidas depended on the presence of physical shops to sell their products. In 1920, at the age of 20, Adi started developing sports shoes in the “wash kitchen” of his parents’ house. Aligning with their future goal, in 2016 and 2017, Adidas decided to focus more on “digital”, where they consider their website as the most important shop; therefore, they completed the divestiture of their hockey brand CCM, golf brands TaylorMade, Adams Golf, and Ashworth to focus on the 2015 plan, “Creating the New” (adidas-group, 2018). Last few years have been successful and profitable years for German sportswear firm Adidas. Lastly, the era of social commerce represents the period where it started to be active on social media and took advantage of this new network to enhance their businesses. Based on “Similar Web’s” web analytics, Adidas recorded an average visit duration of 2 minutes and 57 seconds. Here, at ACaseStudy.com, we deliver professionally written papers, and the best grades for you from your professors are guaranteed! Even though Adidas owns more than 2500 retail stores, approximately 13000 mono branded franchise stores, and roughly 150000 wholesale doors, the company considers its website as the most important shop they won. The company recorded 50.25%, however, the average is 41%. However, Instagram and Twitter share an additional category of pages, those related to specific geographical areas, which are completely absent on Facebook. To a certain extent, both Instagram and Twitter are being approached by Adidas in the same way regarding both page segmentation and the services provided. Nowadays, only the Nike Corporation produces more sportswear being the leader in this sector of the market. Recommend this page. (Adidas-group, 2018) In the year 2005, Adidas decided to complete a divestiture with the previously acquired Solomon Group. For a multi-national company like Adidas, supply chain management is one of the most crucial aspects of business operations. 3. Acasestudy.com © 2007-2019 All rights reserved. Therefore, I can assume that Adidas tends to offer shopping services, provided by each social media platform, much more than the message service on both Instagram and Twitter. Adidas’s case consists of three parts. 6 Effective Content Marketing Strategies You May Have Overlooked, Market Analysis Definition (With Explanation and Examples). In each of these markets, there are wholesale, retail, and e-Commerce business activities responsible for the distribution and sale of products of both the “Adidas” and “Reebok” brands, where the latter is a brand owned by Adidas. Moreover, R&D activities are based on an Open Source Approach which is based on collaborations with athletes, universities, leading companies, and governments. Away from the year 2013, cost of sales surged from €4.254 billion in 2010 to €10.514 billion in 2017. After the death of Adolf Dassler the company was moving closer to its crisis gradually and at the beginning of the 1990-ies the profit of the company was very low. Adidas started publishing financial figures related to R&D since the year 2010, for that reason this financial figure was absent in the previous years. Based on Adidas’s Annual Report (2014 a), the reason behind this decrease was due to the negative effects from the lower gross margin as well as higher other operating expenses as a percentage of sales. Nautilus ubuntu. On the other hand, the hugest difference between Adidas and the average was reported in the paid search with more than 13% difference. Moreover, they admitted that technology has increased the speed of maintaining relationship with the customers. To achieve their future plan, the company identified three strategic choices: (adidas-group, 2018). (Adidas-group, 2018). One of their most remarkable campaigns was in 2004 when Adidas allowed its most famous athletes, including David Beckham, Haile Gebrselassie, and Muhammad and Laila Ali, face their fears, defeats, and challenges to prove that “impossible is nothing”. On the other hand, for Instagram, the IGTV is available in all the pages except in three, whereas, the shop now is available in all the pages except in two. Yet, one year later, the company announced the acquisition of “Reebok” and “Reebok-CCM Hockey”, bringing together two of world’s most respected and known brands in the sporting goods industry. Between 1968 and 1970, he intended to meet with athletes, examine their needs, observe the possibilities to improve, and develop the best possible products (Adidas-group, 2018) (Flippo, 2019). “We had an understanding that it was digital advertising – desktop and mobile – that was driving those sales and as a consequence we were over-investing in that area,” said Peel. One the other hand, Adidas stated that the increase in sales in 2017 was due to their strong presence in the US market, share price development, improving retail profitability and improving sustainability. The new shoe was Micro pacer featured which provide performance statistics to athletes. As a conclusion from the previous part, we can highlight some important aspects regarding the website traffic. According to an interview done with “Financial Time”, the CEO of Adidas, Kasper Rorsted, stated, “Our website is the most important store we have in the world” (Rorsted, 2018). Between the period from 1972 and 1978, the company became a “true multi-sport specialist”. Yet, it is essential to mention that when examining Adidas’s different accounts, we assume that a different strategy was implemented in Twitter, where the company tends to interact with customers more, if compared to other media platforms, through tweets. This feature is just present on the company’s Facebook main page and not on other pages on the platform. Fortunately, due to the new trend of outsourcing (primarily, from Germany to China, Vietnam, Indonesia, etc.) Adidas Supply Chain and Distribution Network . R&D expenses increased from €102 million in 2010 to €187 million at the end of 2017. According to Adidas, “digital competences” are not only useful for enhancing the relationship with their customers but also these competencies are essential for organizations within the company (Adidas-group, 2017). Even Adidas did not know about this love story until the band held up the 3-Stripes shoes during a 40,000 fans’ concert. Adidas is engaged in the design, development, production, and marketing of athletic and sports lifestyle products worldwide. Posts are rare, fewer followers if compared to other social media platforms, people interact but less frequently with respect to the interactions on other social media platforms, it is a platform where page owners can only post videos and not pictures or written posts. The second one, which is the e-Commerce era, refers to the period where Adidas added a new revenue stream to their businesses, online selling. In 2019, Kasper Rorsted, Adidas … adidas… During the summer of 1947, Adi Dassler established the “Adi Dassler adidas Sportschuhfabrik” and set to work with 47 employees in Herzogenaurach. Adidas owns eight official YouTube pages that fall under the same categories as those on Facebook. Shravan Bhumkar (KH08JUNMBA100) 5. Case Study - Nike vs Adidas, market and comprehensive competition analysis EXECUTIVE SUMMARY Since the birth of the Internet in 1969 to its commercial adoption in the 1990s, the World Wide Web has enabled businesses and consumers to connect with one another to exchange and share information, anywhere and anytime. Today Adidas consists of a range of branches: Reebok, Y-3, Taylor-Made Golf, etc. For instance, Adidas owns both Instagram and Twitter pages for France, Brazil, Canada, Los Angeles, Mexico, and South Africa. It is quite difficult to know exactly the date of the beginning of the social commerce era. Adidas AG is beating Nike Inc. on Wall Street recently, with shares that have gained 21.87%, so far this year, compared to 16.92% for Nike. This merge of art and music helped in setting the everlasting street fashion trend off, as well as it was the beginning of non-athletic promotions in the sporting goods industry. The main idea behind the ball was to increase its visibility on black and white TV. Products cannot be sold unless Adidas’s supply chain is well-managed and efficient, and public perception of a brand/company is critical to success. In the case study, the performances of Adidas are examined during social commerce. The cost of sales graph takes the same path as the sales’ one. First of all, based on the information provided by “similar web” we can say the Adidas’s website is not the best in its category ranking, where the company had lower KPI’s averages if compared to the figures mentioned in the “Wolfgang KPI report 2019”. NEW YEAR SALE 30% off everything. 1 The case study gives the story behind the result by capturing what happened . However, in 2014, Adidas’s net income experienced a sudden decrease due to the increase in the tax rate less unfavorable earnings mix (Adidas-group, 2014 a). A student should collect enough data for the research to get to know about the topic and to analyze it soberly. After that same examination is gonna be done for Nike in order to examine how the two companies performed in the social commerce era based on three main perspectives: financial, web, and social media analysis. ... (Flippo, 2019) (Adidas-group, 2018) The year 1954 was a turning point in the company’s history. There are approximately 57,000 people working for Adidas group, in which the company has employees from nearly 100 nations in their headquarters. However, the message tool is just provided for six pages on Instagram and three pages on twitter. Kishore Gulhane (KH08JUNMBA074) 2. The company was able to earn its first rewards and milestones in both Amsterdam (1928, Lina Radke), and Berlin (1936, Jesse Owens). The average values in each period were calculated and then graphed to analyze the general trend. However, we cannot assume that Adidas’s website is not attractive for two reasons. During the period between late 80’s and early 90’s, the company faced troubles in leadership and strategic decision, and its financial figures experienced a loss which brought the company near bankruptcy. Adidas’s endorsements were not only limited to football, outdoor icon Reinhold Messner climbed mountains wearing Adidas shoes, and gymnast Nadia Comaneci scored a perfect 10 in Montreal — 1976. The brand has added $5.8 billion since 2015 growing at an average rate of 17.6% whereas Nike footwear has only added $4.3 billion at an average rate of 6.8%. The company’s portfolio widened its horizon to include more and more sports through the years, and a broad range of athletes were wearing the company’s logo in famous sports events. If compared with the average provided by Wolfgang “KPI report 2019”, it shows that Adidas’s average is three seconds below the benchmarked one. Manoj Das ITM, Kharghar, Navi Mumbai , Batch : XIII 2. The end of the family business was in the year 1987 when Horst Dassler died just two years after his mother passed away. (Flippo, 2019) (Adidas-group, 2018). Besides sports footwear, Adidas also produces other products such as bags, shirts, watches, eyewear, and other sports- and clothing-related goods. A well-composed Adidas case study should dwell on the problem which occurred in the corporation or with its production. Moreover, these departments are responsible for sourcing, designing and product marketing functions. Very soon Dassler shoes began well-known all over the world, but after the World War II after the death of their father Adi and Rudi Dassler decided to divide the company of the father and between them and called their new companies Adidas and Puma, which have become rivals since that time. We use cookies to give you the best experience possible. The vision of the company is to be the best sports company all over the world. In 2015, Adidas confessed that R&D activities are decentralized by each brand within Adidas group where each brand owns an independent R&D department. Moreover, as mentioned in Adidas’s history, in 2015 the company launched a new strategic plan “Creating the New”, which shows the company’s willingness to work hard and inspire people to engage the power of sports in their lives because believe that sports is an attitude and a lifestyle (Adidas-group, 2016). Since its early beginnings, famous athletes were wearing Adi’s products where the company started gaining a worldwide reputation. In the same year, the company announced the creation of a “Digital Leadership Team” which is responsible for harmonizing the digital initiatives across the company, as well as supporting provisions for functional teams in their decision-making process. Yet, the company remained a family business and Adi’s son, Horst, took over and continued to master his invention. 7 Team Members 1. How about receiving a customized one? Adidas decided to complete the divestiture of Rockport brand and focus on its core business, Adidas and Reebok. Adidas is known to be connected with advertising and spends much money on it; no wonder the best sportsmen of the world advertise this brand. 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