Adidas Growth Strategies Essay

2396 Words Apr 24th, 2010 10 Pages
IV. Introduction
This analysis is about the company adidas that belongs to the adidas Group. The adidas Group sells products under the brands adidas, Reebok and TaylorMade-adidas Golf. Adidas is on the market over 80 years and sells products for every kind of sports. The adidas group was founded in the year 1949 by Adolf Dassler. A company that started with selling soccer shoes contains today a wide product assortment with footwear, apparel and accessories. The brand is further divided into three subbrands called adidas performance, original and sport style. TaylorMade-adidas also offers wide range of golf equipment and matching golf apparel and accessories.
On their homepage the adidas Group claims to be “a global leader in the sporting
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The purpose of vertical integration is to increase the control of the stages of development.
In the early beginnings adidas produced all their shoes and apparel on their own. Through the huge expansion in the last decades adidas don’t produce all their apparel on their own. Today they own 9 own factories where they produce some of their products. Further, they have around 615 main suppliers from all over the world. Production is in Europe (27%), Asia (51%) and America (22%). (EVB, Adidas)

Differentiation (uniqueness)
The differentiation is a strategy with the main focus of developing a product, service or image that is unique and with attributes that are highly appreciated and valued by customers. Customers will value them higher as products or services of competitors. Through creating a unique image companies that make successful use of this strategy can often sell their products for a higher price. So it is easier for companies to present their products as unique because they get more money to cover their costs. Factors that describe companies that make use of differentiation are • Access to leading scientific research. • Highly skilled and creative product development team. • Strong sales team with the ability to successfully communicate the perceived strengths of the product. • Corporate reputation for quality and innovation.
(QuickMBA, Porter’s Generic Strategies)

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