Essays on Adidas Generic Strategy Case Study

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Executive summaryAdidas Company was established in 1924 and is the world’s second largest company in the world in the manufacture of sportswear. The company has transcended all odds to expand its operations in almost all parts of the world. Most of the mature markets for its products are in Asia and North American region. Technology has greatly helped the company in achieving its main objective of being the best company in customer satisfaction through enhancing rapid response to customer’s claims. The company operates both in the economic as well as the political arena.

Both of these environments have effects on the companies operations which either interfere or promote the development of the company operations. The company has different brands for its products which are tailored to meet the diverse requirements of its customers, for example, there are products which are manufactured for various games such as football, netball, volleyball, cricket, hockey, tennis, running and they all suit the games they are used to play. IntroductionAdidas is the largest manufacturer of sports wear in Germany. It is also the second largest company in the world among the sportswear companies.

It was established in 1924 by Adolf Dassler who was later joined by his brother Rudolf Dassler which was transformed into Dassler Brothers Shoe Factory and it performed well in its initial years of operations because 200,000 were sold every year before the world war two erupted. The company split in 1948 because of the misunderstanding that came between the two brothers and each one of them formed his company with similar operations. Rudolf formed the Puma Company and Adolf remained with the original Adidas.

The company formalized its registration under the name Adidas AG in 1949.The company witnessed a period of trouble which followed the demise of Horst Dassler who was Adolf Dassler’s son. As a result the company was bought in 1989 by Bernard Tapie who was a French industrialist. He bought the company for 1.6 billion francs which is estimated to be currently 243.918 million franc. Tapie managed this because he was famous in rescuing bankrupt companies and his reputation was well known by all the financial institutions that funded him to purchase Adidas.

Following purchase of the company Tapie decided to relocate its production activities to Asia and hired the famous American pop singer and song writer Madonna to promote the companies products. Failure to pay interest for his loan caused Tapie to mandate the Credit Lyonnais bank to sell the Adidas Company. The company was sold in 1993 to Robert Louis who was a close friend of Tapie for a higher mount of 4.485 billion francs rather than 2.85 billion that Tapie owed the bank. Robert became the CEO as well as the president of the company and owned the Plympique de marselle football team which was owned by Tapie until 1993.Towards the end of 1997, Adidas AG purchased the Salomon Group which was a company that specialized on the production of ski wear.

Following this acquisition the corporate name changed from Adidas AG to Adidas-Salomon AG. A. Series of forward acquisitions followed with the purchase of Taylormade golf and the maxfli companies in early 1998. More integration came in 2004 when the top English designer Stella McCrtney entered into a joint venture with Adidas which became a long term agreement and corporation between the two companies.

The company introduced its first technology in the production of its shoes when it utilized a microprocessor in its production. The company's dubbed the shoes “the world's first intelligent shoe”(Graham, 2004).

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