Introduction - Industry Analysis and Environmental Business
The footwear around the globe is growing very rapidly because of the growing footwear demand of the individuals. The innovation of sport footwear increased in recent years therefore the companies have aggressively adopted various modern strategies in their production. World popular footwear industry Adidas is known for its dynamic performance in the market and it got huge responses from individuals all around the globe. The organization was introduced in the year “1949 and has its headquarter in Herzogenaurach, Germany”. Not footwears but also the company is known for furnishing and manufacturing great qualities of clothes along with essential accessories. This organization is the largest producer in Europe while being second in the world. The total revenue of Adidas reached €19.29 B in the year 2016. A. Dassler started Adidas in the house of his mother and was later joined by Rudolf, his elder brother in the year 1924. After some years a conflict between the two brothers made Rudolf start his own company named Puma which became the rival of Adidas later. As a means of marketing aid, Adidas’ logo can be determined by the 3 black stripes designed on the footwear along with the clothes made by the company.
Introduction to footwear sport industry
Footwear all throughout the planet is becoming quickly in light of the developing footwear interest of the people. The development of game footwear expanded as of late subsequently the organizations have forcefully taken on different current techniques in their creation. The growing demand of trending, comfortable and fashionable sports footwear is becoming an essential factor for the companies to enhance their performance and serve the consumers better.
Sub Sectors
Adidas is known for manufacturing all sorts of footwear, accessories, clothes and apparel.
Various organizations in the footwear sports industry
There are numerous organizations which are involved in the footwear sports industry such as Adidas, Asics, Nike, Air Jordan, Reebok, Puma, Fila, K-swiss and many more.
Key figures
Total number of retail stores of Adidas in the year 2020 became 2,456.
Total number of worldwide workers of Adidas in the year 2020 became 62,285.
Yearly revenue of Adidas reached €19.29 B.
The “brand value of Adidas became 16.5 B US Dollars”.
Revenue
Adidas is the highest producer of footwear in Europe while being at second highest in the world with a total yearly revenue of €19.29 B along with the “brand value of 16.5 B US Dollars”.
Aims and Objectives
Adidas is involved in the manufacturing of sports footwear with the objective of spreading social awareness of the necessity of sports in human life to the individuals. According to the company, sport is the centre of every individual and the culture to bring happiness in their life. Serving their consumers in a better and efficient manner by giving favorable services to them has always been an essential objective of Adidas.
Vision and Mission
Athletes never look for average performance and so neither does the Adidas Company. The mission of the company is very clear to become the best and effective brand of sports footwear in the world. Each and everyday Adidas sells more than millions of products and gives effective services to the individuals around the world in a very sustainable manner. The company is best for its credibility and sustainability across the globe.
Competitors
The competitors of Adidas are Asics, Nike, Air Jordan, Reebok, Puma, Fila, K-swiss and many more.
Stakeholders
The stakeholders of Adidas are those who get influenced by the business activities of the company or often the business gets affected by them. These stakeholders are as mentioned below:
Workers of the organization
Board of Directors
Authorised government
Shareholders
Retailers, distributors and consumers
Market share and position
The market share of Adidas is about 6% and it stands at third number in the market of footwear industry right after Nike and Jordan.
Brand awareness
Adidas has focused on the 3 major brand strategies which are urbanization, speed and very creative innovation.
Customer base
All the age groups of individuals are used to buying footwear from Adidas but the company attracts 40-45 years of age individuals more.
Goods and services
Adidas is known for manufacturing all sorts of footwear, accessories, clothes and apparel.
Number of workers
The total number of worldwide workers of Adidas in the year 2020 became 62,285.
Net worth of Adidas
The total net worth of Adidas Organization is €19.29 B.
Geographical presence
The headquarter of Adidas is located in Germany while it has many locations of business “around the world such as Hong Kong, England, Portland, Taiwan, Japan, Spain, Toronto and Australia”.
Ceo (Kasper Rorsted)
Chairman Board
Impact analysis of Adidas
Categories of risk
Potential impact
Change (2019)
Likelihood
Change (2019)
Risk formed because of Covid pandemic
Essential
-
30%-50%
-
Risks formed due to social and macroeconomic factors
Essential
-
30%-50%
Increasing by 15%
Related risk to the demand of the customers along with offering the product
Essential
Highly increasing
15%-30%
-
Risk formed due to retail environment and competition
Essential
Highly increasing
15%-30%
Decreasing by 30%-50%
Risks arise because of business partner
Essential
-
15%-30%
Increasing by 15%
Personnel risks
Very high
Medium increasing
30%-50%
Increasing by 15%
Risks related to activities of stakeholder and media
Medium
Highly decreasing
30%-50%
Increasing by 15%
Related risks about IT along with cyber safety and security
Parfenov, M. and Akaev, E., 2019. Improving Advertising Activity of the Organization–Case: Adidas.
Schmid, S., Dauth, T., Kotulla, T. and Leding, P., 2018. Adidas and Reebok: Is Acquiring Easier than Integrating?. In Internationalization of Business (pp. 27-61). Springer, Cham.
HR, G. and Aithal, S., 2020. Rational Organizational Structure: For Brick-and-Mortar Lifestyle Retailers in India to Overcome Diseconomies of Scale and Protect Firm’s Sustainability (ROLS-b).
Kozak, D., 2018. The development of a sustainability strategy with a focus on environmental issues in the context of MNCs: the business case of Adidas (Doctoral dissertation).
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