This 18 page paper examined Adidas after it has made the acquisition of Reebok and considers whether or not the company will be able to compete efficiently with Nike. The paper looks at the company background, and its current strategy as well as performing a SWOT analysis and looking at the company using Porters Five Forces model. The value chain is also considered and the results are used to determine whether or not Adidas will be able to compete with Nike for the market leader position. The bibliography cites 11 sources.
1. Introduction Adidas is a major competitor in the sportswear and trainer industry. The name is well known, but
the brand has also suffered some setbacks as Nike have risen to prominence. The company has been competing and has sought to gain a better position; it may be argued
that this was the idea of Adidas when they acquired Reebok. However it still remains to be seen whether or not this will allow Adidas to compete more effectively with
Nike. Ti consider whether or not this is likely we can look at the company and the way it operates, starting with the background to the company and then looking
at the strategies and with the use of a SWOT analysis. 2. Company Background Adidas was founded in 1949 in Germany, the name was taken from the founder; Adolf
Dassler, with Adi from his first name and Das from his surname (Adidas, 2007). The company competed effectively and in 1954 when Germany played Hungary the wore Adidas soccer boots
that had the first removable studs (Adidas, 2007). The company was floated ion the Frankfurt and Paris Stock Exchange in 1995, and moves from strength to strength as in
1996 the brand supplied a total of 6,000 athletes at the Olympics from a total of 33 countries (Adidas, 2007). The athletes wearing the shops create an attractive association for
the brand as they win a total of 70 gold medals and 220 medals in total, following this success Adidas seen the sales of apparent increase by 50% (Adidas, 2007).
In 1997 there is the acquisition of Salomon AG and Adidas becomes Adidas-Salomon, this means additional brand were added to the portfolio, including Bonfire, Mavic and TaylorMade (Adidas, 2007).