1. Module Title
Theory & Practice of Strategic Management
Assignment Title
Organisation Analysis Proposal
Organisation Analysis
The report will examine Adidas’ business strategy. Although the company was selected as a topic
due to relevance to researcher’s major subject in master’s course, its strategy for surviving in a high
competitive industry could be beneficial case to other cases.
Formerly established as a Gebrüder Dassler Schuhfabrik in Germany, 1924, and then reformed to
Adidas in 1949, it has thrived in sports wear industry, producing sports footwear, apparel and
equipment. Although it showed sound financial result, doubling its sales and tripling for a past
decade, competition in the industry, against Nike and PUMA, is considerably fierce, which resulted
in Adidas’ sales follows Nike’s one. Consequently, stable finance and development of marketshare
in each region are significant. Amidst these situation, Adidas conducted an restructuring in 2006,
acquiring Reebok. However, since recent sales of Reebok has been declining, this initiative as well
as overall Adidas’ strategy could be questioned.
Therefore, the report will use Poter’s five foces model to clarify business environment. Firstly,
Adidas’ general strategy will be provided from a book, Pitch Invasion: Adidas, Puma and the
Making of Modern Sport (Smit, 2007). Also financial results will be collected from IR reports and
news media, such as Financial Times and Forbes. Further, marketshare will be examined through
market report by sort of institutions as well as news media, which provides a wide range of their
perspective and presumption, will be referred.
Bibliography
Adidas Group (n.d.). Financial Report. Available at: http://www.adidas-group.com/en/investors/
financial-reports/ (Accessed: 26 February 2014)
Bryan, V. (2013). UPDATE 3-Adidas says soccer, running to help it beat Nike in Europe. Reuters.
Available at: http://www.reuters.com/article/2013/11/07/adidas-results-idUSL5N0IS0T220131107
(Accessed: 4 February 2014)
Euromonitor International (2013). 5 Key Findings in Sportswear. Available at: http://
euromonitorintl.wistia.com/medias/8tpx2qj77f (Accessed: 27 February 2014)
Forbes (n.d.). The World’s Most Valuable Brands. Forbes [Online]. Available at: http://
www.forbes.com/powerful-brands/list/ (Accessed: 3 March 2014)
Goodway, N. (2009). Adidas to slash jobs as profits take a nosedive. Evening Standard [Online].
Available at: http://www.standard.co.uk/business/adidas-to-slash-jobs-as-profits-take-a-
nosedive-6731786.html (Accessed: 27 February 2014)
Marsh, E. (2010). Puma Profit Up, Bullish On 2010, WWD: Women's Wear Daily, 199(91), p5.
11 May 2014
(c) Yusskei, http://yusskei.net
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2. Mesure, S. (2005). Adidas abandons slopes with deal to sell Salomon ski brand for £330m. The
Independent [Online]. Available at: http://www.independent.co.uk/news/business/news/adidas-
abandons-slopes-with-deal-to-sell-salomon-ski-brand-for-acircpound330m-6146960.html
(Accessed: 27 February 2014)
Polz, J., Thomasson, E., Goodman, D. (2014). Sportswear industry predicts boost from Olympics
and World Cup. Reuters. Available at: http://www.reuters.com/article/2014/01/22/us-olympics-
sportswear-idUSBREA0L12620140122 (Accessed: 27 February 2014)
Riper, T. V. (2013). Adidas Makes Its Run At Nike. Forbes [Online]. Available at: http://
www.forbes.com/sites/tomvanriper/2013/02/13/adidas-makes-its-run-at-nike/ (Accessed: 4
February 2014)
Thomasson, E., Bryan, V. (2014). H&M lines up to compete in booming sportswear market.
Reuters. Available at: http://www.reuters.com/article/2014/01/09/olympics-hm-
idUSL6N0JY3CI20140109 (Accessed: 27 February 2014)
Schäfer, D. (2009). Reebok restructures under Adidas. FINANCIAL TIMES [Online]. Available at:
http://www.ft.com/cms/s/0/f5d47b42-59b6-11de-b687-00144feabdc0.html#axzz2uX1EPRyc
(Accessed: 27 February 2014)
Word Count
231 words
11 May 2014
(c) Yusskei, http://yusskei.net
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