ADIDAS IN 2009:

A. ADIDAS BUSINESS UNITS (Case Summary)1. Adidas Footwear and ApparelAdidas core business was competed in sports apparel and footwear industry. However, in 2008, this industry's sales were failed to growth. The international economic slowdown had intensified in 2009 and had led to steeper drops in industry revenues. Adidas footwear and apparel was organized under two categories, sports shoes and attire, and the sport categories divided into running, soccer, basketball, and general training. Soccer was the strongest category. The sports performance group accounted for 80% of adidas-branded apparel and footwear sales in 2008. While the Sport Style streetwear and life-style fashion represented small amount of revenues, but could create high profit margin and the market was growing at a faster rate.2. Salomon Winter SportIn late 1997, Louis-Dreyfus and the family owners of Salomon SA, a French sports equipment manufacturer, agreed to a 1.5 billion euro merger that would diversify Adidas beyond footwear and apparel into ski equipment, golf clubs, bicycle components, and winter sport apparel. The poor performance of Salomon and TaylorMade in 1998 led to a net loss of $164 million for Adidas-Salomon during the first nine months of its fiscal year. By summer 1999, adidas-Salomon's share price had declined. The acquisition of Salomon winter sport was struggled in achieving good earnings, but TaylorMade seemed can improve it sales in 2005. Adidas finally divested this business in 2005 to Amer Sports Corporation.3. TaylorMade-adidas GolfTaylorMade Golf was the third largest producer of golf equipment. In 2009, TaylorMade was the largest seller of drivers, fairway woods, and hybrid clubs. It also produced and marketed a line of golf balls, but had not achieved any significant market success in the product category.4. ReebokAdidas acquired Reebok for 3.1 euro in 2006. This acquisition initiative will make Adidas focus on the business' primary lineup, which is athletic footwear and apparel. This acquisition increased Adidas revenues more than 4 billion euro. Company's branding strategy after acquisition is to place Adidas as superior shoe, while Reebok would be positioned as leisure shoe with middle price.At the time of acquisition, the Reebok brand suffered from a poor reputation for quality, innovation, and styling. In 2009, Adidas management had chooses to use Reebok brand of athletic footwear to focus on beginning and recreational runners and women athletes participating in running, aerobics, walking, and training. Adidas management had also expanded Reebok's distribution beyond its historical focus to both improve its image and make Reebok shoes available to a wider range of consumers.B. CASE ANALYSISSeeing some business units that Adidas has or ever had, Adidas seemed to have a multi-brand strategy in a related business line. All the business is still in the sports industry, even if some business might targeting fashionista instead of athletes, but the basis of the businesses are still related one to each other. Adidas official website stated that Adidas embraces a multi-brand strategy. More from the website, Adidas thinks that consumers deserve choice. They believe no one should be reduced to just one of many facets and talents. No matter whether he or she is an athlete looking for the best equipment, or a fashionista searching for the next trend, or both Adidas wants to engage with them in a long-lasting relationship. Adidas multi-brand strategy enables them to do just that because it allows them to tackle opportunities from several perspectives, as both a mass and a niche player, always providing distinct and relevant products. In this way, their brands and their sub-brands all keep their unique identity. This focus is translated well in Adidas Six Key Strategic Pillars which are the strategic choices and investments priorities of the company, and they are[footnoteRef:1]: [1: Adidas-group.com. (2015). Profile. Retrieved 26 April 2015, from http://www.adidas-group.com]

1. Diverse brand portfolio This approach enables them to set and respond to trends more effectively and continually invest into strengthening the brand portfolio.2. Investments focused on highest-potential markets and channels3. Creating a flexible supply chain4. Leading through innovation5. Develop a team grounded in our heritage6. Becoming a sustainable company