The company After world war I in 1924, Adolf dassler came back home and he began making his own shoes in Herzogenaurach, Germany. After that, Adolf and his brother Rudolf (Rudi) Dassler established a small business to produce shoes and afterwards the business develops to a DASSLER BROTHERS FACTORY. In those days, the electrical resources were not so much therefore both the brothers used the bicycle pedal power to continue their productions of goods. The first sportsman to use the Dassler brother shoes was an American sportsman Jesse Owens who won by using the shoes of the Dassler Brothers.
After that the sportsmen from all over around the world showed their interest in buying shoes of Dassler Brothers 1947. The partnership between the brothers finished and both the brothers started their own business. The Rudi Dassler started a new business which he named RUDA which was later changed to PUMA, the Adi’s company became Adidas in1949. and started his mission to provide athletes with the best possible equipment and make the brand the best in the world.
We can say that Adolf dassler redefined the sporting goods industry by founding Adidas. Adidas produces clothing, shoes and various accessories related to sport. The company is considered as the biggest sportswear manufacturers in Europe and ranked the second largest in its area of operation after Nike, and till 2018, the company strengthened her presence in six key cities; Los Angeles, New York, Paris, Tokyo, London and Shanghai, and those cities represent their trade zones. According to the latest annual report the net sales of the adidas Group worldwide hit the high of 21,91 billion euros in 2018 with a change of 3% comparing it to 21.22 billion euros in 2017 while it was around 19,3 billion euros in 2016. The company sales are divided in the following product categories: footwear, apparel and hardware. Footwear captured the largest sales share in 2017.Regarding revenues, adidas delivered another year of significant top-line growth with currency-neutral revenues increasing by 8%. In other hand Net income from continuing operations increased 20% from‚ 1.430 billion in 2017 to 1.709 billion in 2018. For the employees, adidas has established standards and rules that specify the company’s responsibilities towards its global workforce. Adidas defined all rights and responsibilities clearly in the adidas Labour Rights Charter. Employee recruitment, development, equal opportunities and compensation and benefits are some of the issues that are related to those policies:- Rewarding:the company offers its employees fair and competitive compensation and benefits. wages give employees the opportunity to live at an adequate standard of living, and the organization also encourages its employees to develop their potential by offering them the opportunity for personal training to hone their knowledge and skills.- Harassment and discrimination:all employees have equal opportunities, and every discrimination based on the category membership is prohibited in the company between all employees.no one should be unfairly disadvantaged or ostracized because of their ethnic or racial status.- Freedom of association and collective bargaining:The employees are free to join organisations of their choice that representthem consistent with local organising laws. These organisations may, if recognised as theappropriate agent engages in collective bargaining according to the applicable legal regulations.- Data Protection and Security:The company is committed to fair play and transparency in the field of protecting the employees’ privacy.- Communication and Engagement:Adidas believes in strong internal communication systems to drive employee engagement and to foster open dialogue and collaboration within the organisation. For the consumer, Adidas manage the risk of selling defective products that can affects badly consumers and/or impair the company’s image by passing all materials and product samples by a rigid compliance process and test in accordance with standardised material and product testing specifications and procedures, the company has also company-wide product safety policies in place that mitigate the risk of selling any defective products to consumers, the company should also provide quality goods at reasonable price.Adidas is a company that seek to engage in activities that effect positively the society and promote the public good, those social activities give a good brand image and reputation.For Adidas group, the companies direct an immense amount of focus into their corporate social responsibility, they focus on the 4 Ps, people, product, planet and partnership. The group participates in an organization called, Wings of help, assisting and improving the lives of refugees in Syria and Iraq. Besides that, Adidas collaborates with a different environmental organization. For example, the company joined the sustainable apparel coalition (SAC) and the Fair Labour Association (FLA). the factory also works to increase the use of sustainable materials such as recycled polyester, bio-based materials and sustainable cotton. Regarding their focus on -planet-, the company wants to achieve a series of goals, as a one of the chemical management leaders for the last two decades, they strive to achieve a zero discharge of hazardous chemical by 2020.To make sure everything goes according to plan, the Adidas group frequently organizes social compliance and environmental audits. The product and service Adidas training equipment is the ultimate in fitness equipment. As a company that produces sports and fitness products, adidas is one of the most respected brands in world. She strives to continually combine an elegant and avant-garde design with high performance products that allows athletes to improve their physical skills. The company’s products are traditionally marked with a three-stripe trademark, which remains an element in the company’s newer trefoil and mountain logos. One of the main focuses of adidas is football equipment, the company makes team kits, shoes for international association football teams and clubs, the first football shoes were made om august 18th,1949 with moulded rubber studs, while the first adidas balls were developed and produced in 1963. Adidas has also provided baseball equipment, and manufactures golf clothing, footwear, and accessories. In 2007 it entered to the lacrosse equipment, products manufactured for the sport are sticks, gloves, protective gear and boots. Currently Adidas manufactures several running and lifestyle clothes and shoes, the company has constructed a strong runner’s network. For tennis, the founder of adidas made his first tennis shoes in 1931, then Adidas started developing this sport’s equipment in 1960 , Adidas also makes a several accessories, it designs and makes slide-style sandals, baseball caps, socks, bags, as well the company has produced a branded range of deodorants, perfumes, aftershave and lotions. Never get cold feet again!The guiding principle of the founder of adidas is simple: make athletes better, so based on my expectations about upcoming technological trends, Adidas has a chance to introduce a new design of shoes that heat up from the sole into the market, This new product allows you to regulate the temperature in the shoes, because actually the athletes who train in a cold weather or snowing areas need a new generation of shoes that make them improve their performance even in difficult conditions. In other hand, I think Adidas as a sport giant should not only invest in the sports market but also it should try the other product related to the sport but in different industry like food (Nutrition and energy) products. With the production of such kind of product, Adidas will be able to fulfil the market gap. Life cycle of Adidas product can be divided into several stages: Introduction stage:When Adidas introduces a new product, sales will be low until customers become aware of the product and its benefits. This stage requires lots of research, expenditure and planning, the product advertising costs are high during this stage in order to quickly increase the customer awareness product, this period is considered as a negative profits stage because the higher costs fixed with low sales. Growth stage:During growth stage, the sales rise because of attracting more competition. Similar products start come up and the company must focus on competitive advantages such as price reduction, value added features or some other innovations. At this stage, it is better for Adidas to invest in enhance their market share as well as enjoying the overall growth of the market. Maturity stage:This stage is the time when most profit is earned by the whole market. Some expenditure on research is likely to be controlled to the product modification and improvement and reinforce production efficiency and quality. Decline stage:In this stage, the market is reducing that means that the overall total of profit that can be shared with other competitors decrease. Decline period appears because of the decrease of product sales. At this stage, Adidas must manage the product carefully, it may reduce production costs by cutting out some of them, transferring production to a cheaper facility, selling the product into other cheaper markets. According to Adidas group the main target audience for Adidas is of around 13-30 years old consumers who are involving in any given discipline or sports. Adidas makes high quality products for the athletes and those who are into sport even if they don t practise it. Teenagers who are into football mostly males are one of the main target audience of the company. Along with this audience, there is also the smaller audience of those who are not into sports. They buy Adidas products just for the big logo’s and the look of the shoes and clothes for the fashion statement. Those are between 16-25, working-middle class both males and females. Today, the company is focusing on targeting and strengthening its brand with the next generation of athletes in the 14-19 years old, Adidas believes this target is the most influential consumer group in the world.