VEDINI KANZI WIDYA 224412122 LOGISTIC C

Adidas History Adidas was founded in 1924 in Germany by two bothers Adi and Rudolf Dassler. The company was first named Dassler shoes and later became Adidas. By the Dassler shoes being seen in the Olympics this really helped the company get its name known. However, in 1948 Rudolf Dassler

leaves to start his own company which is now known as Puma. Once Rudolf left his brother came up with the famous three stripes logo and changed the name to Adidas. The 3 stripes were created to keep the foot stable, but ended up being the logo. Throughout the years Adidas was seen in the Olympics, and it was the leading brand making their shoes highly sought after by Olympic athletes. In 1978, Adi Dassler passed at age 78 and his wife Kathe ran the company. Six years later Kathe passed and the company was left for their son Horst Dassler to run, and three years later Horst passed at age 51. After Horsts death Adidas ran into some major financial problems, and later Bernard Tapie comes to make an attempt to save the company. Well to be HONEST, later down the road a hip-hop group named Run-DMC came and put Adidas on another level just like Jordan did for Nike, and the rest is HISTORY! They even made a song called "My Adidas", and it was a hit all around the world. After Run-DMC came to Adidas they even had their own signature line. Run DMC is still making Adidas money today just like Jordan is still making Nike tons of money......these guys are true legends to the "Shoe Game". Adidas has worked with many famous people and has a signature shoe line for Stan Smith, Kevin Garnett, Tracy McGrady aka TMAC, Missy Elliot, and many others.

Competitive advantage Adidas With A unique product portfolio covering accessories, apparel and footwear for professional athletes to premium trendy fashions, allows Adidas to cater to multiple customer needs and demands. This provides Adidas with the opportunity to exploit various markets locally and internationally. Together with Adidas's commitment to product innovation and its rich heritage aids in differentiating the brand from its competitors. Like most retail giants Adidas markets its products in accordance to the seasons; for instance A heavy emphasis is placed on summer apparel when its warm outside because there is a greater demand for short and lighter clothing. Their plan is to not only market their product in accordance to the weather changes but also to the changes in the various sports seasons. Adidas has a great advantage to appeal to all markets because of the variety of products they distribute caters not only to men but also to women and even children. In order for the company to sustain its dominance and appeal in the industry Adidas ever so often adjusts to the times, trends and changes in consumers demands. Endorsing highly publicized Athletes, Socialites and

Performers aid to market the brand and also provides a competitive advantage over its competitors.

Technology Adidas introduces modern approaches to doing new and old things, Adidas join into technology by make up the worlds first smart shoe, adding a microchip inside the shoe and wireless mp3 player. Adidas uses hot melt system of production which is environment friendly. And the packaging system, storage system and transportation of products are considerably advanced comparing to other companies.

Degree of Rivalry of ADIDAS Adidas is competing in the market with many rival firms including the world leaders Nike, PUMA, FILA etc. The rivalry among existing competitors is pretty high in the sports and footwear industry as compared to other similar industries. ADIDAS has adopted several strategic measures for their market growth such as acquisition of an existing competitor, building partnership etc. ADIDAS has grown into a world leader through several acquisitions; namely Sports Inc., Salomon AG, Reebok etc. In 2005, the ADIDAS acquired worlds third sports brand, REEBOK and this was a remarkable event in the history of the company, as it paved the way for the expansion of its market share. The Company ADIDAS has also benefited from the strategy of on-line sales. Though stiff and strict competition exists, the company growth is based on its brandequity and brand identity. As ADIDAS deals with products of low product differentiation, the degree of rivalry is so high. Since the switching costs are low, the rivalry among competitors is very high. When dealing with products of competitive nature, the firm have to be highly innovative and the technology used should be of very advanced and sophisticated. This brings the fixed cost high and in turn increases the degree of rivalry

among the competitors. The diversity of rivals, that is; the rival firms like NIKE, PUMA are of different cultural, historical and philosophical backgrounds and so the rival moves are very difficult to predict.

Adidas Rivals:

Value Chain Analysis Adidas maintains its primary activities so well since its start. The inbound logistics and outbound logistics are so good in regard to adidas. They have a specified inbound logistic chain for moving raw materials and un assembled goods inside the company .Moreover the outbound logistics system for the transport of finished goods is very fast and timely. The core operations, marketing and sales have been outstanding which helped adidas to be one of the major players in the sector. The research teams for the development of new innovative development of new products for the changing markets has been sustainable and helps the company well in maintaining its market position. Adidas has introduced e sales for the first time in the sector and still manage to be the strategic market leader in this regard. Adidas monitors the quality of service,staff training and customer satisfaction throughout the franchisees as a part of their value chain. All the supporting activities in the case of adidas like procurement,research and development,human resource management and infrastructure development are well carried out keeping in mind the company's reputation,brand value and market status. The company always emphasis on procurement of materials and all related activities in the cheapest possible mode, making maximum use of the global sourcing and offshoring strategies. The company has moved a part of its manufacturing activity to china and Vietnam,taking account of the labour cost. Moreover the employees are well treated and kept with maximum satisfaction. The company believes that,its employees are very vital form of resource for them. The company spends a large amount on technology development,and maintaining its infrastructure,accounting,control and planning and management information system. SWOT analysis of Adidas

Strengths Adidas is one of the major company in the sporting goods industry. The key strengths are listed below1)Brand value-Is considered as one of the most successful brands since long time and is figured in the top 100 most valuable brands in the world for the year 2009 by 247wallst. 2) Strong and proven marketing strategy and networks-strong franchising networks and company owned outlets throughout the globe. 3) Leading market position in the industry-One of the largest player in the industry. The company dominates in most of the NON-US countries and the reebok brand helped to gain 20% share of the footwear industry in US. 4) Diversified operations in different parts of the world-The company's strategy differs in different parts of the world. 5) Strong on-line presence-The company introduced the concept of on-line trading in this particular sector and manage to maintain the leadership. 6) Competitive pricing Weakness 1) The bad performance of reebok in non US markets. 2) High cost structure. 3) Limited product line. Opportunities 1) Change in consumer lifestyle and growing global footwear market-With changing lifestyle more and more people are using sports goods and moreover according to studies by different institutions,the global footwear market is expecting a steap increase especially in the Asian market. 2) Growing market-according to studies carried out by different industrial analysis institutions,the sector is expected to grow to $72 billion in 2010 which is a hike of 12% when compared to 2005. 3) Sponsoring major events-Company has announced sponsorship agreements with Australian Olympic committee,Japan football association,FIFA world cup football 2010 and 2014,merchandising partnerships with NBA and so on which they can utilize maximum for their publicity and growing their market. Threats 1) Raw material prices are increasing rapidly 2) forged products-imitation products are abundantly available in Asian markets especially in china and south east Asia. 3) Tough competition in the sector-puma Ag Nike close rivals

Adidas SWOT

Supply Chain Structure The adidas Group has outsourced most of its production. We work with more than 1,100 independent factories from around the world that manufacture our products in 62 countries. Our supply chain is global and multi-layered, with many different types of business partners, some of who are directly contracted factories, and others who are not. In 2012, the top five countries per region by number of supplier sites were:

The Americas: United States, Brazil, Canada, Argentina and Mexico Asia: China, Vietnam, Japan, Indonesia and Korea EMEA: Germany, United Kingdom, Italy, Turkey and Spain

Our influence in terms of social and environmental compliance is linked to the strength of our partnerships, and is often proportional to the scale and stability of the orders placed with our suppliers. Supplier factories by region in 2012 (excluding own factories and licensee factories) 37 Adidas innovation:

1. Stromtrooper Sneaker 2. Adidas Embraces Grafitti

3. Footwear and Driving 4. Supercar Spring Shoes 5. Sporty Fashion 6. Vertical Soccer 7. The Adidas Footbal Cathedral 8. The Adidas Originals 9. Relauncing Iconic Shoes 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. Star Wars Sneakers Olympic Branding Celebrity Sneaker House Parties Shop of the Future Cuztomizable Hi-Tech Soccer Shoes Adidas Launces Store With The Help Of Ducks Adidas Celebrates Originals BBQed Shoes Classic Logo Mods Athletic Couture Movie Themed Shoes Soccer Player Haidors Cityscape Sneakers Diamond-Studded Sneakers Deconstructed Sneaker Art Runway-Worthy Athletic Shoes Virtual Shoes Fitting July Footwear

28. 29. 30. 31. 32. 33. 34. 35. 36.

Formal Gymwear Electric Green Sneakers Zipper Stripe Sneakers Leopard Print Sneakers Adidas Originals Spring/Summer 2007 Campaign Viral YouTube Ad Virtual Music Fest Silver Sneakers Stella McCartney Joins Adidas To Release New Fashion Line

Adidas Group Stategic Pillars :

Adidas aims at market leadership in Poland with UEFA EURO 2012

Adidas Group CEO Herbert Hainer announced that the adidas brand plans to use the UEFA EURO 2012 as a platform to achieve market leadership in Poland by 2015. In addition, adidas aims for market leadership in the football category in Poland in 2012. In the Ukraine, where adidas is already the clear market leader, the brand wants to further expand its leadership position. As the Official Partner of UEFA EURO 2012, we will use the event to reach market leadership in Poland by 2015 and take over category leadership in football in 2012, said Herbert Hainer, CEO of the adidas Group. This is the first time a major tournament like the UEFA EURO will be hosted by Poland and the Ukraine. We are very excited about the upcoming event and plan to leverage UEFA EURO 2012 internationally to showcase our brand and our innovative and exciting products. As the Official Sponsor, Supplier and Licensee of UEFA EURO 2012, adidas provides the Official Match Ball and supplies the equipment for all officials, referees, volunteers and various youth programs such as ball kids and player escorts. First products for the UEFA EURO 2012 will be available for consumers at the end of 2011. At the media event, Herbert Hainer was joined by Artur Czerwonogrodzki, Country Manager for the adidas Group in Poland, who shared details about the Groups business in Poland and the current status of its preparations for UEFA EURO 2012. Adidas purchasing, power, parity Whereas adidas has only 0.005 per cent of our global supply chain in Bangladesh, which is a very low wage cost country, we source a lot more of our goods from other parts of Asia. Although the data is a couple of years old, I thought I would share with you the International Labour Organisations summary of the Purchasing Power Parity of minimum wages in selected countries in Asia. These are countries where 80 per cent of our global production takes place. The figures for PPP given in the graphic above are US dollars per month.

Adidas Global Operations in go to market process

Adidas Suppliers by region (2011)

Shareholder structure

Five performance benefits To be relevant to our target consumer as the performance brand, we have identified five consumer benefits which will form the basis of our innovation pipeline for the next five years. We believe that serving these benefits will keep us at the forefront of the industry, building brand image and allowing us to leverage our technologies and positioning seamlessly across categories.

Faster: To help athletes be faster, we will focus on reducing product weight, making the lightest products on the market. The franchise will be built with the adiZero platform. Already prominent in 2010, this will be a key initiative for 2011 where we will introduce even lighter products in football, basketball and American football. Stronger: With adiPower, we intend to create a franchise to own power enhancement in sport. This platform will include products such as Predator in football, Barricade in tennis and Techfit apparel. Smarter: Through interactive products, we will help athletes and consumers of all fitness levels to be, train and perform smarter. We work with the best athletes and coaches around the world. Through platforms such as miCoach, we will make this knowledge available to every consumer, helping them to define and work towards their individual goals. Cooler: These products will be geared to help the athlete to always have the right temperature (cooler, warmer, wind protection, etc.). This will be served through the Clima franchise, which is already one of our best-known franchises around the world. Natural: Natural motion is a major trend in our industry. Drawing on our long history, experience and understanding of the shape of the foot and movement of the body, we will create a new platform of products around natural motion over the next five years

Ensuring cost competitiveness Global Operations focuses on further optimising product creation through an efficient material and colour selection process. This, coupled with increased automation in manufacturing, will enhance productivity, shorten lead times and improve overall quality. These improvements are expected to enhance profitability for the Group and ensure we provide our consumers with the best value proposition possible. In 2011, a joint effort between Global Operations and Global Brands yielded initial results on consolidating material and colour numbers, which will already start to deliver benefits in spring/summer 2013. In the area of automation and manufacturing efficiency, pilot lines were established in several factories for most categories. Parts produced per hour for these lines have improved in some instances by almost 40%. The function will continue to look for opportunities to semi-automate process steps in production where possible, while supporting this effort with the endorsement of lean manufacturing principles throughout its supply base.

Operating cash flow components

Key financial metrics

New industry best practice planning process

Retail Space Management to drive efficiency

Retail Space Management (RSM) comprises all business models helping Global Sales to expand controlled space in retail. The Wholesale function is cooperating with retailers along the entire supply chain to bring best-inclass service all the way through to the point of sale. By helping to improve the profitability per square metre for the Groups retail partners as well as improving product availability, we can achieve higher customer satisfaction, thus driving share of retail shelf space. The three predominant models to drive the success of RSM for the adidas Group are Never-out-of-stock, FLASH collections and franchising. Never-out-of-stock (NOOS): The NOOS programme comprises a core range of basic articles, mostly on an 18 24 months lifecycle, that are selling across all channels and markets. Overall, the NOOS replenishment model secures high levels of product availability throughout the season, allowing for quick adaptation to demand patterns. Retailers have to provide dedicated retail space, co-invest in fixtures and fittings and commit to a first fill representing about 25% of total expected seasonal demand to participate in this programme. In return, customers can profit from significantly reduced inventory risk on these products. Most NOOS articles are on an end-to-end supply chain, thus limiting the adidas Groups inventory risk as we re-produce following customer demand. FLASH collections: The FLASH programme consists of pre-defined collection packages that are delivered every 4 6 weeks to retailers doors, including basic point-of-sale promotional materials to promote dedicated retail space provided by the retailer. All articles of the FLASH packages are exclusively developed for this programme with the intention to bring freshness to the retail space. With a short development lead time, we are able to reflect recent product and colour trends in the FLASH range. As no samples are available during sell-in, the customers buy into a business proposition rather than traditionally selecting individual articles. In return for this commitment, the retailers have the right to selectively return articles of every FLASH collection that have not sold out during the defined retail window. Overall, the FLASH programme helps to improve brand image while limiting inventory risk for the customers. The FLASH programme has been started in 2010, with full-scale rollout planned from 2012 onwards. Franchising: Mono-branded store franchising is one of the Groups prime growth opportunities, as it offers superior brand presentation. Franchise stores are financed and operated by franchise partners. The adidas Group normally contributes to the costs for brand-specific fixtures and fittings each store has to be equipped with. Further, we support our franchise partners with a comprehensive franchise concept, including range propositions, IT systems, training concepts, and guidelines for store building and store operations. This ensures that the quality of the brand presentation and the service offered

to the consumer are at all times high and comparable to our own retail stores. Harmonisation and standardisation of processes to exploit leverage While understanding that market and consumer needs require differentiated distribution policies, the establishment of the Global Sales function is also an enabler to further leverage the size of our Group and reduce complexity by implementing best operational practices across our wholesale activities. The harmonisation and standardisation particularly of back-end processes can help to further reduce cost through simplified IT systems and applications. Similarly, and already started in Europe, we are rolling out a trade terms policy that rewards customer performance either by higher efficiency (e.g. in logistics) or better sell-out support (e.g. by point-of-sale activation). As part of this effort we will harmonise trade terms definitions, and we have established regular reporting, delivering meaningful benchmarks that allow us to tightly control our investments.

Wholesale Strategic Pillar

Recrutmen and selection Adidas has a clear mission: "To be the leading sports brand in the world". The Adidas Sport Performance division has one guiding principle: to equip all athletes with product to achieve their own "impossible". While Adidas is proud to support athletes in all sports, the Sport Performance division is mainly focused on four key categories: running, football, basketball and training. ?? "Adidas Group is growing very rapidly which means an effective global talent management strategy is absolutely critical," commented Steve Bonomo, Head of Recruiting at Adidas Group "We are implementing Active Recruiter to greatly speed up and increase the efficiency and effectiveness of our recruitment process, which will in turn help to enhance our employer brand and ensure we attract, hire and retain talented people." Most of adidas's senior executives from German, Canada and USA whereas most successful western corporations employ more diversely at the corporate level. (Takeuchi et al, 2008) Furthermore, this explains adidas's success in all aspect of their business. As a result, since its foundation, Adidas has been able to achieve market advantage by keeping up with it technology and more importantly being ahead of its competitors.

Adidas has a very rigorous hiring process and often only recruit those who have had higher grades and are smart and very dedicated to the sposrt industry. But it can be argued that intelligence isn't always the key to excellence, particularly in an industry that is influenced by changing technologies as well as competition. Adidas should aim to make the organisation attractive to potential candidate by carrying out an analysis of the labour market in all the local areas that the company operates in. Pay and other benefits might not be the only factors to consider. The company could introduce flexible working hours in the UK for example and where mostly men are employed, they could consider hiring women.

Competitive Adventage my self

Im a student who can blendin to everyone.I also diligent and enterprising personina unique learning process that I have oneI have aloud voice with high tone. I like the organization and confident and I can use acomputer properly.