Adidas Company Analysis Essay Example
Adidas AG, a footwear, sports apparel brand was founded in 1924 by Adi Dassler in Germany. Adi’s brother, Rudolf became his instant competition when he left Adidas to start his own company Puma. Puma is a big footwear and apparel company. In 2006, Adidas brought Reebok but Nike remained one of their top competitions. Nike became a big competitor because Nike owns Jordan, Converse and Hurley. This caused Adidas to be a threat barrier. Adidas has thrived due to it’s wide range of customer demographics, it’s sponsorships and suppliers.
When Adidas first got started, it was affected by Puma being started as well. Not only was it another company getting started but another company that sold footwear and sports apparel like Adidas. Since Adi’s brother was the founder, he knew what Adidas was all about so he knew what to create for Puma and that made the impact even greater than their competitor. Then, there was Nike who was a sportswear, and footwear company that became their rival when it was founded in the 1960s. When Nike comes about, Nike ended up owning Converse, Hurley, and Jordans as well. So they had one up on Adidas. In 2006, Adidas then brought Reebok. By Adidas buying Reebok it became a complement. It added opportunities for their company and help to broaden their company some more. The wide range of customers helped Adidas to thrive. From famous athletes buying and wearing Adidas footwear and sports apparel to kids wearing Adidas for school. Adidas biggest market was soccer. Customers comprising buying cleats, shorts, sportswear, etc for soccer. Even though Adidas was the original company to come up with footwear and apparel, the companies that came after still became their arrivals. There was really no existing rivalries. Adidas over the years has had great suppliers and sponsorships.They a hundred and thirty suppliers in fifty different countries. Seventy percent of their suppliers are in Asia. Forty percent of where footwear is made is in Vietnam and twenty percent is in Cambodia and the other twenty percent is in China. Adidas has sponsored with famous rapper, Kanye West to make Yeezy’s which are five hundred dollar sneakers. They have also sponsored with other celebrities and schools. They put a lot of money into marketing to produce ads, commercials and to just push their brand out there. They push commercials with celebrities showcasing their brand because that makes customers want to buy it. If a customer sees an athlete wearing something, then they are thinking, “Ooh, I want that.” Alot of people look up to athletes and celebrities. Technology has also helped Adidas numbers to rise with being able to post commercials, ads, and pictures. Also, to help with marketing, Adidas has their own website where you can purchase their merchandise and you can receive notifications about sales and sometimes coupons and deals. This is a great marketing tool because he draws the customers in. It makes them want to buy something. Adidas demographics are very diverse. From the different people they use in commercials to advertisements and pictures. From showing a kid playing soccer to a basketball player to a rapper, it is showing that the brand is for everyone.
To conclude, Adidas has been around for ninety-six years. It was one of the first sportswear and footwear companies to exist. After Adidas, Puma and Nike comes along which became competitors for Adidas. Factors that create a competitive environment for Adidas are their power of customers, power of supplies, impact of new competitors entering the market, and impact of complement services or products. These factors created a positive result for Adidas. A substitute for Adidas would have been that it was the first sportswear and footwear to get started so they probably hit roadblocks along the way. Factors that lead to a macro-environment would be technology and demographics. These two categories really have affected Adidas to create powerful customers and powerful suppliers. The factors of macro- environment lead to factors of a competition environment