Essay on Adidas Industry Analysis

950 Words Apr 5th, 2008 4 Pages
Adidas athletic shoes

1.

General History

The global footwear market is a growing market with an increase in consumer demand based on globally increasing consumer incomes. The sports footwear market is significantly characterized by the high speed of innovation, which forces the companies to invest more in development initiatives. At the same time the companies are trying to reduce costs through decreasing supplier prices in order to stay competitive. Looking forward, the footwear market is expected to steadily keep growing.
The Adidas Group is a worldwide operating German sports apparel manufacturer with its head office in Herzogenaurach. The company was founded in August 1949 and named after its founder Adolf (Adi) Dassler.
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Major players
The major players in the athletic shoe market are Nike, Adidas, Reebok, New Balance, and K-Swiss. In the first quarter of 2004, Nike had the biggest market share with 40%. New Balance held the number-two spot with 11%. Reebok was ranked third with a little over 9%. Just behind them was Adidas with 9%. K-Swiss brought up the rear with 3.5%. These numbers are quite different from those of 2000. Nike still had the lead with 39% with Adidas holding the number two spot with 15.1%. The number three spot was held by Reebok with 10.9%. In fourth, New Balance had a market share of 9.4%. K-Swiss was 5th with a market share of 3.6%
New Balance has done very well and gained a large portion of the market share pushing out the previous second placeholder Adidas. While it would appear that Adidas has lost market share as a brand, the company bought Reebok. As a corporation, in 2004, Adidas held 20% of the market share between the two brands.
Technology/social/legal- brand
Adidas as a brand are utilizing a few forms of technology. Adidas shoes can be purchased online. When products are purchased online Adidas makes sure to protect you from identity theft. This gives their customers assurance when purchasing their products.
Adidas has established a new technology in their shoes called “Mega bounce”. This product is used to enhance your shoe experience. This shoe bounces with every step to give you more comfort

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