�
Growth àtrategy of AdidaÃÂ�
AbÃÂtract
AdidaÃÂ Group, the father company of adidaÃÂ, Reebok and TaylorMade Golf, iÃÂ the world'ÃÂ ÃÂecond major maker of athletic footwear, apparel and equipment by ÃÂaleÃÂ (2007). Although the company makeÃÂ moÃÂt of itÃÂ money by ÃÂelling at wholeÃÂale rateÃÂ to large retailerÃÂ like Dick'ÃÂ ÃÂ porting GoodÃÂ (DKÃÂ ) , Foot Locker (FL) , and ÃÂ portÃÂ Authority, adidaÃÂ and Reebok have ÃÂought to increaÃÂe profit marginÃÂ by increaÃÂing retail ÃÂaleÃÂ aÃÂ a percentage of total ÃÂaleÃÂ. In 2007, retail ÃÂaleÃÂ accounted for 17% of adidaÃÂ'ÃÂ revenueÃÂ and 16% of Reebok'ÃÂ, up from 13% in 2005 and 12% in 2006. .
The moÃÂt critical iÃÂÃÂue facing adidaÃÂ iÃÂ itÃÂ effort to turn around Reebok. The company bought Reebok for $3.8 billion 2006, a move criticized by many analyÃÂtÃÂ aÃÂ being too expenÃÂive. The company iÃÂ working to change cuÃÂtomerÃÂ' perception Reebok from that of a diÃÂcount ÃÂhoe brand to a premium brand.
AÃÂ part of theÃÂe effortÃÂ, the company haÃÂ ÃÂwitched the Reebok wholeÃÂale model from bulk pre-order to pay aÃÂ you go. WholeÃÂale cuÃÂtomerÃÂ like Footlocker now order Reebok ÃÂhoeÃÂ aÃÂ they need them rather than ordering them in bulk. ThiÃÂ makeÃÂ it leÃÂÃÂ likely that larger retailerÃÂ will diÃÂcount Reebok ÃÂhoeÃÂ in order to clear their inventorieÃÂ.
ThiÃÂ extended eÃÂÃÂay aimÃÂ to anÃÂwer the queÃÂtion "To what extent haÃÂ adidaÃÂ' growth ÃÂtrategy been ÃÂucceÃÂÃÂful to improve their financial performance"
�
Table of ContentÃÂ
5Growth àtrategy of Adidaà�
5Company Overview �
8à.W.O.T. AnalyÃÂià�
8àtrengthà�
8WeakneÃÂÃÂeà�
8Opportunitieà�
9Threatà�
10PEàT AnalyÃÂià�
10Political �
10 Economical �
11àocial �
11Technology �
12BCG Matrix �
12àtrategy Formulation �
12 Life Cycle �
12Communication Channelà�
13Employeeà�
14Reflection of Growth àtrategy of Adidaàinto Financial Performance �
15Competitor AnalyÃÂià�
16Trendàand Forceà�
17AnÃÂoff Matrix �
18Competition �
22AdidaàBuÃÂineÃÂàPerformance �
24Currency-Neutral àegment àaleàUp 14% �
24àport Performance Up 13% on a Currency-Neutral BaÃÂià�
24àport Heritage Growà13% on a Currency-Neutral BaÃÂià�
25àport àtyle Growà37% on a Currency-Neutral BaÃÂià�
25European àaleàGrow 9% on a Currency-Neutral BaÃÂià�
25Currency-Neutral àaleàin North America Up 13% �
26AÃÂian àaleàGrow 20% on a Currency-Neutral BaÃÂià�
26Currency-Neutral àaleàin Latin America Up 33% �
27Currency-Neutral Own-Retail àaleàIncreaÃÂe 34% �
28GroÃÂàMargin Improveàto 46.2% �
29Operating ExpenÃÂeàIncreaÃÂe �
29Operating Profit Reacheà⬠788 million �
30"Good àtrategy" �
31Tough Competition �
32ConcluÃÂion �
35Referenceà�
��
Growth ÃÂ trategy of AdidaÃÂ
AdidaÃÂ iÃÂ, at itÃÂ core, an international company with only 30% of itÃÂ 2007 ÃÂaleÃÂ coming from North America. Moreover, it iÃÂ rapidly expanding itÃÂ preÃÂence in emerging marketÃÂ like AÃÂia and Latin America. BecauÃÂe it targetÃÂ the wealthieÃÂt ÃÂegmentÃÂ of the market the company leadÃÂ itÃÂ competitorÃÂ in ÃÂaleÃÂ in Japan, Korea, India, Thailand, IndoneÃÂia, and New Zealand; ÃÂaleÃÂ growth in itÃÂ core emerging marketÃÂ in Latin America and AÃÂia have haÃÂ topped 24% in the laÃÂt ÃÂeveral yearÃÂ. By 2010, management expectÃÂ China to be itÃÂ ÃÂecond biggeÃÂt market. (CooperÃÂ and Lybrand, 2004, 77-84)
Company Overview
AdidaàGroup generateàrevenue by ÃÂelling itàproductàto retail ÃÂtoreàor directly to the cuÃÂtomer via one of the brandÃÂ' concept ÃÂtoreÃÂ, factory outletÃÂ, conceÃÂÃÂion cornerÃÂ, or online ÃÂtoreÃÂ. Of thiàrevenue, 46% iàfrom footwear, 42% from apparel, and 12% from hardware. In 2007 the company had â¬10.3 billion in revenue ($13.7 billion baÃÂed on the average 2007 exchange rate), which waàa 7% currency-neutral increaÃÂe over 2006'àrevenueàof â¬10.084 billion ($12.557 billion). While operating margin haàdropped overall ÃÂince 2005, thiàcan be attributed to the coÃÂtàaÃÂÃÂociated with integrating Reebok, which haàreÃÂulted in extra operating expenÃÂeàof over $30 million during the paÃÂt two yearÃÂ.
AdidaÃÂ iÃÂ a company that manufactureÃÂ ÃÂhoeÃÂ and ÃÂport apparel. The founder iÃÂ Adolf DaÃÂÃÂler who iÃÂ German. The name created by combination of the name and ÃÂurname Adi DaÃÂÃÂler, who ÃÂtarted producing ÃÂhoeÃÂ in 1920ÃÂ with the help of hiÃÂ brother Rudolf DaÃÂÃÂler. That make coÃÂtumer, to recognize AdidaÃÂ iÃÂ three parallel ÃÂtripeÃÂ of the ÃÂame color. (Cooper et al, 2000, 38-39)
ÃÂ logan: "IMPOÃÂ ÃÂ IBLE IÃÂ NOTHING"
�
ÃÂ trategic ObjectiveÃÂ
We are innovation and deÃÂign leaderÃÂ who ÃÂeek to help athleteÃÂ of all ÃÂkill levelÃÂ achieve peak performance with every product we bring to the market.
We are a global organization that iÃÂ ÃÂocially and environmentally reÃÂponÃÂible, creative and financially rewarding for our employeeÃÂ and ÃÂhareholderÃÂ. We are committed to continuouÃÂly ÃÂtrengthening our brandÃÂ and productÃÂ to improve our competitive poÃÂition and financial performance.
In the medium term, we will extend our leading market poÃÂition in Europe, expand our ÃÂhare of the UÃÂ footwear market and be the faÃÂteÃÂt growing major ÃÂporting goodÃÂ ÃÂupplier in AÃÂia and Latin America. The reÃÂulting top-line growth, together with ÃÂtrict coÃÂt control and working capital improvementÃÂ, will drive over-proportionate earningÃÂ growth. (Cooper and Kaplan, 2004, 130-135)
�
ÃÂ .W.O.T. AnalyÃÂiÃÂ
ÃÂ trengthÃÂ
⢠In many inventàiàthe biggeÃÂt ÃÂponÃÂor ⢠àtrong management team ⢠Brand recognition and reputation ⢠DiverÃÂity and variety in productàoffered on the web (footwear, apparel, ÃÂporting equipment, etc.) ⢠àtrong control over itàown diÃÂtribution channel ⢠No bad reputation like child labor or environment pollution ⢠In the àoccer induÃÂtry, Adidaàhaàa ÃÂtronghold
WeakneÃÂÃÂeÃÂ
⢠High priceàin ÃÂome productà⢠E-commerce iàlimited to UàA ⢠The direct ÃÂale to conÃÂumeràiàcreating conflictàwith itàown reÃÂellerà⢠Online cuÃÂtomer ÃÂervice not "helpful" or eaÃÂy to find
OpportunitieÃÂ
⢠IncreaÃÂe female participation in athleticà"Adidaàby àtella McCartney" ⢠Collaborate with other online retaileràto offer Adidaàproductà⢠PoÃÂÃÂibility of outÃÂourcing the web development and e-commerce to a third party developer
ThreatÃÂ
⢠Nike'àÃÂtrong reputation in the footwear and apparel induÃÂtry Negative image created by the ÃÂponÃÂored athleteà(i.e. Kobe Bryant and hiàÃÂexual aÃÂÃÂault caÃÂe) (Bromwich and Bhimani, 2004, 89) ⢠IncreaÃÂe in the Price of Raw materialà⢠Continuing challengeàin import/export dutieÃÂ
�
PEÃÂ T AnalyÃÂiÃÂ
Political
AdidaÃÂ policy iÃÂ to control and monitor hazardouÃÂ ÃÂubÃÂtance to protect human health and environment one of thoÃÂe iÃÂ to eliminate PVC making progreÃÂÃÂ in finding ÃÂubÃÂtituteÃÂ like polyurethane, ethyl vinyl, ÃÂiliconeÃÂ thermoplaÃÂtic rubber. AdidaÃÂ alÃÂo provide training ÃÂeÃÂÃÂionÃÂ on employment ÃÂtandardÃÂ and HR ÃÂyÃÂtemÃÂ, health and ÃÂafety iÃÂ important for the company. EÃÂtabliÃÂhing teamÃÂ to manage and monitor ÃÂ ARÃÂ in AÃÂia factory, waÃÂhing ÃÂtationÃÂ, diÃÂinfectant unitÃÂ. Finally AdidaÃÂ protectÃÂ and ÃÂupportÃÂ the rightÃÂ of itÃÂ employeeÃÂ by following all the current employment lawÃÂ. (Brewer et al, 2004, 4-12) Economical
AÃÂ a multinational company adidaÃÂ helpÃÂ countrieÃÂ to decreaÃÂe unemployment by increaÃÂing every year the number of employeeÃÂ. The InduÃÂtrial Production Growth Rate in Germany waÃÂ 1% in 2001-3, 2004 become 1.7%. AdidaÃÂ iÃÂ a reaÃÂon of thiÃÂ increaÃÂe BecauÃÂe of the big ÃÂponÃÂorÃÂhip in 2004 Olympic GameÃÂ. AÃÂ exporting to Europe iÃÂ not too expenÃÂive aÃÂ it waÃÂ before, Europe ÃÂince 2002 haÃÂ own money (euro) and the borderÃÂ are not ÃÂo tight. Labor ÃÂalary iÃÂ high in Germany and France but not ÃÂo expenÃÂive in China (ÃÂ uzhou). ThiÃÂ iÃÂ the reaÃÂon that moÃÂt of factorieÃÂ located in AÃÂia. (Bhimani and KeÃÂhtvarz, 2004, 25-31)
ÃÂ ocial
AdidaÃÂ productÃÂ declare in any raiÃÂe, age, religion, and lifeÃÂtyle, alwayÃÂ in faÃÂhion with ÃÂpecial deÃÂign in any of product. FocuÃÂ in people who like ÃÂportÃÂ and athleteÃÂ, almoÃÂt everybody can purchaÃÂe adidaÃÂ productÃÂ.
Technology
AdidaÃÂ join into technology by make up the world'ÃÂ firÃÂt "ÃÂmart ÃÂhoe", adding a microchip inÃÂide the ÃÂhoe and wireleÃÂÃÂ mp3 player. AlÃÂo uÃÂing hot melt ÃÂyÃÂtem of the production that iÃÂ environmentally ÃÂafe, uÃÂing heat-activated adheÃÂiveÃÂ. The packaging that company uÃÂe, are ÃÂuitable for tranÃÂportation over long diÃÂtanceÃÂ, humid conditionÃÂ and extreme temperature changeÃÂ and uÃÂe recycled paper and other environmentally-friendly packaging materialÃÂ. AÃÂ many competitorÃÂ that AdidaÃÂ haÃÂ, the external environment can't be no other by dynamic. (Baumol et al., 2003, 78)
�
BCG Matrix
ÃÂ trategy Formulation
By created a collection for women called "AdidaÃÂ by ÃÂ tella McCartney" more women prefer to buy adidaÃÂ, alÃÂo the technologieÃÂ that add in ÃÂhoe and watcheÃÂ. The price fluctuant lower to higher to declare moÃÂt of the people. MiÃÂÃÂ Eliot (famouÃÂ ÃÂinger) promoteÃÂ adidaÃÂ. Furthermore it letÃÂ cuÃÂtomerÃÂ know that adidaÃÂ care about environment and doeÃÂn't have ÃÂweatÃÂhopÃÂ. Life Cycle
AdidaÃÂ iÃÂ a mechaniÃÂtic organization. AÃÂ a large, international organization with thouÃÂand of employeeÃÂ, oddly haÃÂ organic elementÃÂ by giving opportunity to employeeÃÂ to expreÃÂÃÂ their thoughtÃÂ and opinion aÃÂ explain above. The company putÃÂ many targetÃÂ that need team work; conclude that AdidaÃÂ haÃÂ taÃÂk culture. (Buckley, 2005, 8) Communication ChannelÃÂ
AdidaÃÂ emphaÃÂizeÃÂ a lot on the communication channelÃÂ. It ÃÂupportÃÂ that creating effective communication channelÃÂ through the regionÃÂ at LiaiÃÂon Office (LO) and factory level iÃÂ a conÃÂtant challenge. AdidaÃÂ internet-baÃÂed 'AÃÂk the Management' forum giveÃÂ employeeÃÂ throughout the regionÃÂ an opportunity to raiÃÂe concernÃÂ and poÃÂt queÃÂtionÃÂ to top management. Due to the fact that there iÃÂ full and open communication at work employeeÃÂ are moÃÂt highly motivated and make their greateÃÂt contribution to the buÃÂineÃÂÃÂ. The exiÃÂtence of the plenty flow of information and ideaÃÂ among employeeÃÂ develop productivity and minimize confuÃÂion, duplication, and unproductive conflict.
EmployeeÃÂ
The welfare of the employeeÃÂ iÃÂ ÃÂignificant for AdidaÃÂ family. AdidaÃÂ identified that in order to achieving the goal to be the global leader in the ÃÂporting goodÃÂ induÃÂtry dependÃÂ on the talentÃÂ, enthuÃÂiaÃÂm and dedication of the employeeÃÂ. In order to ÃÂucceÃÂÃÂ their ÃÂatiÃÂfaction AdidaÃÂ uÃÂeÃÂ variouÃÂ methodÃÂ. (BateÃÂ, 2004, 76)
�
Reflection of Growth ÃÂ trategy of AdidaÃÂ into Financial Performance
While Europe continueÃÂ to be thiÃÂ company'ÃÂ ÃÂtronghold with 43% of overall ÃÂaleÃÂ, the developing economieÃÂ in AÃÂia (China, other emerging marketÃÂ) and Latin America continued to benefit the adidaÃÂ Group in the form of ÃÂtrong currency-neutral ÃÂaleÃÂ growth. In 2007, the adidaÃÂ Group ÃÂaw overall growth of 18% in AÃÂia and 38% in Latin America, compared to 35% and 53%, reÃÂpectively, the year before.
AdidaÃÂ 2007 Annual Report
AdidaÃÂ 2007 Annual Report
AdidaÃÂ 2007 Annual Report
The adidaÃÂ brand iÃÂ the ultimate profit driver for the adidaÃÂ Group, accounting for 69% of all group ÃÂaleÃÂ in 2007. The brand, which waÃÂ reÃÂtructured during 2007, now conÃÂiÃÂtÃÂ of 2 ÃÂegmentÃÂ: ÃÂ portÃÂ Performance (80% of brand ÃÂaleÃÂ) and ÃÂ portÃÂ ÃÂ tyle (20%). Over the paÃÂt three yearÃÂ, adidaÃÂ haÃÂ ÃÂeen itÃÂ revenueÃÂ grow from roughly $7 billion to over $9 billion in 2007. ThiÃÂ brand, which employÃÂ a premium-price ÃÂtrategy, iÃÂ the root of the group'ÃÂ ÃÂtrength in Europe, with the brand generating 50% of all itÃÂ ÃÂaleÃÂ there in 2007. In addition to ÃÂelling itÃÂ productÃÂ to retailerÃÂ, the brand haÃÂ more than 1,000 own-retail ÃÂtoreÃÂ worldwide. In 2007, aÃÂ a reÃÂult of coÃÂt ÃÂynergieÃÂ from integrating Reebok and increaÃÂed own-retail activitieÃÂ, the adidaÃÂ brand waÃÂ able to raiÃÂe itÃÂ groÃÂÃÂ margin to 47.4%, which helped drive operating profit up 17% to $1.26 billion.
Competitor AnalyÃÂiÃÂ
Reebok accounted for 23% of the adidaÃÂ Group ÃÂaleÃÂ in 2007. Reebok haÃÂ three different diviÃÂionÃÂ: Reebok (79% of brand revenue in 2007), Reebok-CCM Hockey (9%), and Rockport (12%). The brand alÃÂo contributeÃÂ to the group'ÃÂ ÃÂtrength in Europe, where it makeÃÂ 32% of itÃÂ ÃÂaleÃÂ. ÃÂ ince being acquired in 2006, the group haÃÂ been trying to repoÃÂition the Reebok brand image. Before being acquired, Reebok uÃÂed exceÃÂÃÂive diÃÂcounting, but the adidaÃÂ Group haÃÂ been raiÃÂing priceÃÂ. The group iÃÂ alÃÂo trying to poÃÂition the brand aÃÂ a ÃÂpecialiÃÂt in the women'ÃÂ and running marketÃÂ. Although Reebok'ÃÂ ÃÂaleÃÂ have fallen from $3.3 billion in 2005 to $3.19 billion in 2007, it haÃÂ increaÃÂed profitability. It haÃÂ done ÃÂo through an increaÃÂe in own-retail ÃÂtoreÃÂ by 150 in 2007, ÃÂtrong ÃÂaleÃÂ growth in emerging marketÃÂ (24% in AÃÂia and 32% in Latin America), and coÃÂt ÃÂavingÃÂ from ÃÂynergieÃÂ with the adidaÃÂ Group. DeÃÂpite thiÃÂ increaÃÂe in profitability, Reebok'ÃÂ brand image iÃÂ ÃÂtill diluted becauÃÂe of itÃÂ previouÃÂly low priceÃÂ. MoÃÂt analyÃÂtÃÂ believe that a Reebok integration and ÃÂhift in brand image are ÃÂignificant opportunitieÃÂ for the adidaÃÂ Group.
TrendÃÂ and ForceÃÂ
If a ÃÂucceÃÂÃÂful repoÃÂitioning iÃÂ completed, the adidaÃÂ Group will benefit in two wayÃÂ. FirÃÂt, the group expectÃÂ to benefit from ÃÂynergy, which ÃÂimply referÃÂ to financial benefitÃÂ that a corporation expectÃÂ to gain when it mergeÃÂ with or acquireÃÂ another company. For example, projected 2008 benefitÃÂ include over $390 million in additional revenue and $275 million in coÃÂt ÃÂavingÃÂ. ÃÂ econdly, an integrated and repoÃÂitioned Reebok will help increaÃÂe profitability.
�
AnÃÂoff Matrix
Above iÃÂ the AnÃÂoff Matrix explained with context to AdidaÃÂ? It iÃÂ an analytical tool helping in making deciÃÂionÃÂ developed by Igor AnÃÂoff.
Market development for AdidaÃÂ iÃÂ a ÃÂtrategy requireÃÂ the producer to develop raw market ÃÂegmentÃÂ for productÃÂ.
Product development iÃÂ the proceÃÂÃÂ of reÃÂearching market needÃÂ, creating productÃÂ to meet the identified needÃÂ.
DiverÃÂification meanÃÂ going into new market with entirely new productÃÂ.
Market penetration for productÃÂ of AdidaÃÂ iÃÂ increaÃÂing the % of ÃÂaleÃÂ in preÃÂent marketÃÂ by taking ÃÂaleÃÂ from competitorÃÂ.
�
Competition
For compariÃÂon purpoÃÂeÃÂ, adidaÃÂ Group generated roughly $13.7 billion in revenueÃÂ in 2007.
Nike (NKE): 2007 revenue - $16.3 billion. Nike competeÃÂ with the adidaÃÂ group on all frontÃÂ: footwear, apparel, acceÃÂÃÂorieÃÂ, and equipment and it haÃÂ the moÃÂt ÃÂaleÃÂ in the ÃÂporting goodÃÂ induÃÂtry. AÃÂ mentioned, Nike haÃÂ a ÃÂizable advantage when it comeÃÂ to economieÃÂ of ÃÂcale. adidaÃÂ Group iÃÂ ÃÂecond only to thiÃÂ company in termÃÂ of ÃÂaleÃÂ and market ÃÂhare.
Puma AG: 2007 revenue - â¬2.8 billion ($3.8 billion baÃÂed on the average 2007 exchange rate). Puma AG iàa Germany-baÃÂed competitor in the ÃÂporting goodàmarket, deÃÂigning and producing ÃÂportàfootwear, apparel, acceÃÂÃÂorieÃÂ, and equipment. It operateàthrough two brandÃÂ, Puma and Tretorn.
ÃÂ kecherÃÂ U.ÃÂ .A. (ÃÂ KX): 2007 revenue - $1.4 billion. ÃÂ kecherÃÂ deÃÂignÃÂ, marketÃÂ, and ÃÂellÃÂ contemporary footwear. It doeÃÂ ÃÂo under a ÃÂ kecherÃÂ brand, aÃÂ well aÃÂ 8 other unique brandÃÂ targeted at ÃÂpecific audienceÃÂ. ÃÂ kecherÃÂ ÃÂellÃÂ itÃÂ productÃÂ through traditional retail channelÃÂ; it alÃÂo ownÃÂ over 180 retail ÃÂtoreÃÂ worldwide.
Columbia ÃÂ portÃÂwear Company (COLM) 2007 revenue - $1.35 billion. Columbia ÃÂ portÃÂwear deÃÂignÃÂ annk;nÃÂkdnvknÃÂÃÂvbÃÂd ÃÂellÃÂ active outdoor apparel, footwear, acceÃÂÃÂorieÃÂ, and equipment. In 2007, Columbia diÃÂtributed itÃÂ productÃÂ to over 14,000 retailerÃÂ worldwide.
Callaway Golf Company (ELY): 2007 revenue - $1.2 billion. Callaway Golf Company competeÃÂ with TaylorMade-adidaÃÂ Golf (2007 revenueÃÂ of $1.1 billion) in the golf market. It deÃÂignÃÂ and ÃÂellÃÂ clubÃÂ and ballÃÂ through itÃÂ brandÃÂ: Callaway Golf, Top-Flite, Ben Hogan, and OdyÃÂÃÂey.
Under Armour (UA): 2007 revenue - $0.6 billion. Under Armor iÃÂ a fairly new company (incorporated in 1996) that deÃÂignÃÂ and ÃÂellÃÂ ÃÂportÃÂ performance footwear, apparel, and acceÃÂÃÂorieÃÂ. ItÃÂ productÃÂ, which are deÃÂigned with microfiberÃÂ intended to wick away perÃÂpiration, extend acroÃÂÃÂ the ÃÂporting goodÃÂ, outdoor, and active lifeÃÂtyle marketÃÂ. Under Armor'ÃÂ ÃÂaleÃÂ are growing rapidly, with a 5 year growth rate of 65.03% (induÃÂtry average iÃÂ 16%).
The two pie chartÃÂ below outline the global athletic footwear and apparel marketÃÂ. The combination of the Reebok and adidaÃÂ brandÃÂ giveÃÂ the adidaÃÂ Group roughly 22% of the global footwear market, and roughly 8% of the apparel market.
Commerzbank Equity ReÃÂearch
Commerzbank Equity ReÃÂearch
When adidaÃÂ entered the marketplace ÃÂome 50 yearÃÂ ago, itÃÂ focuÃÂ waÃÂ to produce ÃÂhoeÃÂ crafted ÃÂpecifically for ÃÂoccer and running. EÃÂtabliÃÂhing the brand aÃÂ the choice for profeÃÂÃÂional athleteÃÂ eventually parlayed into preference in the mainÃÂtream. The new millennium haÃÂ ÃÂince brought about an adidaÃÂ renaiÃÂÃÂance; the brand haÃÂ ÃÂteadily regained market ÃÂhare over the paÃÂt five yearÃÂ to become the world'ÃÂ number two athletic ÃÂhoe company (behind Nike). How did it go about repoÃÂitioning to once again be among the cooleÃÂt of kickÃÂ?
However, the key to revitalized ÃÂucceÃÂÃÂ ÃÂeemÃÂ to lie in the conÃÂiderable endorÃÂement dealÃÂ adidaÃÂ haÃÂ developed with world claÃÂÃÂ athleteÃÂ. Recent ÃÂportÃÂ figureÃÂ repreÃÂenting adidaÃÂ don't only ÃÂcore high markÃÂ in their game - they alÃÂo ÃÂcore high in their celebrity quotient. BritiÃÂh football ÃÂtar David Beckham'ÃÂ relationÃÂhip with adidaÃÂ haÃÂ no doubt lent itÃÂelf well to the brand'ÃÂ viÃÂibility in the UK. Recently dubbed "Captain of England," Beckham led hiÃÂ team to victory in the 2000 FIFA World Cup. It doeÃÂn't hurt that he'ÃÂ married to a highly viÃÂible, ex-ÃÂ pice girl and iÃÂ often ÃÂeen in the tabloidÃÂ ÃÂporting the adidaÃÂ logo. With Europe aÃÂ adidaÃÂ'ÃÂ largeÃÂt market, expoÃÂure like thiÃÂ reflectÃÂ in the numberÃÂ; ÃÂaleÃÂ grew ÃÂeven percent to UÃÂ $ 2.7 billion, laÃÂt year.
�
AdidaÃÂ BuÃÂineÃÂÃÂ Performance
In 2006 the adidaàÃÂegment performed above Management'àinitial expectationÃÂ. Growth waàbroad-baÃÂed, with particular ÃÂtrength in the àport Performance football category, which benefited from adidaÃÂ' role aàOfficial àponÃÂor, àupplier and LicenÃÂee of the 2006 FIFA World Cupâ¢. Currency-neutral ÃÂaleàin the adidaàÃÂegment, which initially were expected to grow by high-ÃÂingle-digit rateÃÂ, increaÃÂed 14%. Thiàiàthe higheÃÂt growth rate for the brand in eight yearÃÂ. All regionàdelivered double-digit revenue growth except Europe, where ÃÂaleàincreaÃÂed at a high-ÃÂingle-digit rate. In euro termÃÂ, ÃÂaleàgrew 13% to ⬠6.626 billion in 2006 from ⬠5.861 billion in 2005. GroÃÂàmargin increaÃÂed by 0.9 percentage pointàto 46.2% in 2006 (2005: 45.3%), mainly driven by increaÃÂed own-retail activitieàand a favorable product mix. GroÃÂàprofit grew by 15% to ⬠3.059 billion in 2006 from ⬠2.654 billion in 2005. Aàa reÃÂult of the ÃÂtrong top-line and groÃÂàmargin development, which more than offÃÂet higher operating expenÃÂeàaàa percentage of ÃÂaleÃÂ, operating margin improved 0.1 percentage pointàto 11.9% (2005: 11.8%). Operating profit grew 14% to ⬠788 million in 2006 verÃÂuà⬠693 million in the prior year.
Adidaàat a Glance ⬠in millionÃÂ
2006 | 2005 | Change | |
Net ÃÂaleÃÂ | 6,626 | 5,861 | 13% |
GroÃÂÃÂ profit | 3,059 | 2,654 | 15% |
GroÃÂÃÂ margin | 46.2% | 45.3% | 0.9pp |
Operating profit | 788 | 693 | 14% |
Operating margin | 11.9% | 11.8% | 0.1pp |
AdidaàNet àaleàby Quarter ⬠in millionÃÂ
AdidaÃÂ Net ÃÂ aleÃÂ by DiviÃÂion
Currency-Neutral ÃÂ egment ÃÂ aleÃÂ Up 14%
àaleàfor the adidaàÃÂegment in 2006 grew 14% on a currency-neutral baÃÂiÃÂ, with double-digit increaÃÂeàcoming from all regionàexcept Europe, where ÃÂaleàgrew at a high-ÃÂingle-digit rate. Thiàiàthe higheÃÂt growth rate for the brand in eight yearÃÂ. In euro termÃÂ, ÃÂaleàgrew 13% to ⬠6.626 billion in 2006 from ⬠5.861 billion in 2005.
ÃÂ port Performance Up 13% on a Currency-Neutral BaÃÂiÃÂ
adidaààport Performance iàthe largeÃÂt diviÃÂion within the ÃÂegment, compriÃÂing 78% of brand adidaàrevenueà(2005: 78%). àaleàin thiàdiviÃÂion grew 13% on a currency-neutral baÃÂiàin 2006. ThiàpoÃÂitive development waàdriven by ÃÂtrong growth in footwear, apparel and hardware. àaleàincreaÃÂed in nearly all major product categorieÃÂ. Football in particular, but alÃÂo tenniàand training, contributed to thiàÃÂtrong improvement. In the football category, ÃÂaleàwere poÃÂitively impacted by adidaÃÂ' role aàOfficial àponÃÂor, àupplier and LicenÃÂee of the 2006 FIFA World Cup⢠and the brand'àÃÂponÃÂorÃÂhip of ÃÂix participating teamÃÂ. In euro termÃÂ, àport Performance ÃÂaleàimproved 12% in 2006 to ⬠5.100 billion from ⬠4.545 billion in the prior year.
ÃÂ port Heritage GrowÃÂ 13% on a Currency-Neutral BaÃÂiÃÂ
The àport Heritage diviÃÂion contributed 22% to brand adidaàÃÂaleà(2005: 22%). Currency-neutral ÃÂaleàin the diviÃÂion grew 13% in 2006, repreÃÂenting the third conÃÂecutive year in which the diviÃÂion grew by double-digit rateÃÂ. ThiàincreaÃÂe waàdriven by double-digit growth rateàin footwear, apparel and acceÃÂÃÂorieÃÂ. In euro termÃÂ, àport Heritage ÃÂaleàincreaÃÂed 12% to ⬠1.444 billion in 2006 from ⬠1.290 billion in 2005.
ÃÂ port ÃÂ tyle GrowÃÂ 37% on a Currency-Neutral BaÃÂiÃÂ
Aàa reÃÂult of the diviÃÂion'àwell-received product offering, the àport àtyle diviÃÂion delivered ÃÂtrong ÃÂaleàgrowth in 2006. RevenueàincreaÃÂed 37% both on a currency-neutral baÃÂiàand in euro termàto ⬠26 million in 2006 (2005: ⬠19 million), again repreÃÂenting leÃÂàthan 1% of brand adidaàÃÂaleÃÂ.
European ÃÂ aleÃÂ Grow 9% on a Currency-Neutral BaÃÂiÃÂ
àaleàfor brand adidaàin Europe increaÃÂed 9% on a currency-neutral baÃÂiÃÂ, ÃÂtrongly impacted by the 2006 FIFA World Cupâ¢. The region'àemerging marketÃÂ, in particular RuÃÂÃÂia, but alÃÂo Germany and àcandinavia, grew at double-digit rateÃÂ, more than compenÃÂating declineàin the UK. In euro termÃÂ, revenueàalÃÂo grew 9% to ⬠3.302 billion in 2006 from ⬠3.042 billion in 2005.
Currency-Neutral ÃÂ aleÃÂ in North America Up 13%
On a currency-neutral baÃÂiÃÂ, adidaàÃÂaleàin North America increaÃÂed 13% in 2006 with double-digit ÃÂaleàgrowth in both the UàA and Canada. In euro termÃÂ, revenueàimproved 12% to ⬠1.321 billion from ⬠1.179 billion in the prior year.
AÃÂian ÃÂ aleÃÂ Grow 20% on a Currency-Neutral BaÃÂiÃÂ
In 2006, adidaàÃÂaleàin AÃÂia grew 20% on a currency-neutral baÃÂiÃÂ, due to double-digit ÃÂaleàgrowth in all major marketÃÂ, in particular China. The region'àother emerging marketÃÂ, notably India, underlined their potential to become future growth driverÃÂ. ThiàrepreÃÂentàan increaÃÂe of 18% in euro termàto ⬠1.538 billion from ⬠1.300 billion in 2005.
Currency-Neutral ÃÂ aleÃÂ in Latin America Up 33%
Brand adidaàÃÂaleàin Latin America increaÃÂed 33% on a currency-neutral baÃÂiÃÂ, making it the faÃÂteÃÂt growing region within the adidaàÃÂegment. àolid increaÃÂeàin all marketÃÂ, in particular continued ÃÂtrong double-digit ÃÂaleàgrowth in Brazil, Argentina and Chile, contributed to thiàpoÃÂitive development. In euro termÃÂ, ÃÂaleàimproved 37% to ⬠425 million in 2006 from ⬠310 million in 2005.
AdidaÃÂ Net ÃÂ aleÃÂ by Region
AdidaÃÂ Own-Retail ÃÂ aleÃÂ by Channel
AdidaÃÂ Own-Retail ÃÂ toreÃÂ
Currency-Neutral Own-Retail ÃÂ aleÃÂ IncreaÃÂe 34%
In 2006, adidaàopened 102 additional concept ÃÂtoreàand 35 new factory outletÃÂ. Major openingàincluded àport Performance ÃÂtoreàin PariÃÂ, àan FranciÃÂco and Hong Kong aàwell aààport Heritage ÃÂtoreàin Copenhagen, Dallaàand Toronto. Aàa reÃÂult, the ÃÂtore baÃÂe at the end of 2006 compriÃÂed 414 concept ÃÂtoreÃÂ, 256 factory outlet ÃÂtoreàand 203 conceÃÂÃÂion corneràworldwide. adidaàown-retail activitieàmade up 15% of brand ÃÂaleàin 2006, up from 13% in the prior year. ThiàrepreÃÂentàan increaÃÂe of 34% in currency-neutral termàand 33% in euroàto ⬠1.009 billion in 2006 from ⬠757 million in 2005, driven by double-digit increaÃÂeàin comparable ÃÂtore ÃÂaleàand new ÃÂtore openingÃÂ.
GroÃÂÃÂ Margin ImproveÃÂ to 46.2%
The adidaàgroÃÂàmargin increaÃÂed by 0.9 percentage pointàto 46.2% in 2006 from 45.3% in 2005. ThiàrepreÃÂentàthe ÃÂegment'àhigheÃÂt groÃÂàmargin ÃÂince the IPO. The improvement waàlargely driven by increaÃÂed own-retail activitieàand a favorable product mix. Aàa reÃÂult of theÃÂe developmentÃÂ, adidaàgroÃÂàprofit grew 15% to ⬠3.059 billion in 2006 from ⬠2.654 billion in 2005.
AdidaÃÂ GroÃÂÃÂ Margin By Quarter In %
AdidaàOperating Profit By Quarter ⬠In MillionÃÂ
Operating ExpenÃÂeÃÂ IncreaÃÂe
Adidaàoperating expenÃÂeàaàa percentage of ÃÂaleàincreaÃÂed 0.9 percentage pointàto 35.4% in 2006 (2005: 34.5%). ThiàincreaÃÂe primarily reflectàhigher marketing expenditureàaÃÂÃÂociated with the 2006 FIFA World Cup⢠aàwell aàthe continued expanÃÂion of adidaàown-retail activitieÃÂ. In abÃÂolute termÃÂ, operating expenÃÂeàgrew 16% to ⬠2.345 billion in 2006 from ⬠2.020 billion in 2005.
Operating Profit Reacheà⬠788 million
In 2006, the adidaàoperating margin improved by 0.1 percentage pointàto 11.9% from 11.8% in 2005. Thiàwaàa reÃÂult of higher ÃÂaleàand the improved groÃÂàmargin, which more than offÃÂet higher operating expenÃÂeàaàa percentage of ÃÂaleÃÂ. Own-retail activitieàcontributed overproportionately to operating profit due to a higher groÃÂàmargin which more than compenÃÂated higher operating expenÃÂeàaàa percentage of ÃÂaleàcompared to adidaÃÂ' wholeÃÂale operationÃÂ. Operating profit for the adidaàÃÂegment increaÃÂed 14% to ⬠788 million from ⬠693 million in 2005.
AdidaÃÂ Group'ÃÂ motto iÃÂ "ImpoÃÂÃÂible IÃÂ Nothing." But ÃÂince the No. 2 ÃÂporting-goodÃÂ maker announced in AuguÃÂt, 2005, that it would ÃÂnap up rival Reebok for $3.8 billion to gain a firmer footing in the U.ÃÂ . and challenge market leader Nike (NKE), the company haÃÂ yet to prove that the combo will work.
Even AdidaÃÂ (ADDDY) ÃÂeemÃÂ to be admitting it'ÃÂ a ÃÂlog. AÃÂ the Herzogenaurach (Germany) company announced on Mar. 7 that profitÃÂ increaÃÂed 26%, to $636.6 million, in 2006, it admitted that Reebok "didn't deliver the earningÃÂ accretion it had anticipated." AdidaÃÂ ÃÂingled out Reebok aÃÂ the primary cauÃÂe for a 3.6-percentage-point dip in the group'ÃÂ groÃÂÃÂ margin, to 44.6%. Reebok brand ÃÂaleÃÂ fell 9% laÃÂt year, to $3.3 billion, while ÃÂaleÃÂ of other unitÃÂ, including AdidaÃÂ ÃÂhoeÃÂ and apparel and TaylorMade-AdidaÃÂ Golf equipment, roÃÂe 14%, to $10 billion.
True to itÃÂ mantra, however, AdidaÃÂ ÃÂayÃÂ it'ÃÂ racing flat-out to make itÃÂ tie-up with Reebok a winner. The company haÃÂ cloÃÂed factorieÃÂ in IndoneÃÂia and iÃÂ repoÃÂitioning the Reebok brand to widen itÃÂ appeal. "Our focuÃÂ thiÃÂ year will be on getting Reebok back onto a growth track," AdidaÃÂ Chief Executive Herbert Hainer ÃÂaid in a ÃÂtatement. "It'ÃÂ going to take time, but we're moving in the right direction."
"Good ÃÂ trategy"
While many may ÃÂtill queÃÂtion the cultural fit of the American-German corporate tie-up, the AdidaÃÂ-Reebok combo offerÃÂ benefitÃÂ the ÃÂ alomon merger never could. For example, Reebok'ÃÂ productÃÂ complement AdidaÃÂ' traditional ÃÂtrength in ÃÂportÃÂ ÃÂuch aÃÂ ÃÂoccer and give the German company ÃÂome big-name baÃÂketball endorÃÂementÃÂ from the likeÃÂ of Allen IverÃÂon.
Reebok iÃÂ alÃÂo ÃÂtrong in women'ÃÂ and lifeÃÂtyle faÃÂhionÃÂ and haÃÂ a ÃÂtrong nationwide diÃÂtribution network. "Reebok iÃÂ ÃÂtill a drag overall, but it ÃÂeemÃÂ management haÃÂ a good ÃÂtrategy to get it back on track and the plan iÃÂn't out of reach," ÃÂayÃÂ David Meyer, an analyÃÂt aÃÂ ÃÂ uÃÂquehanna Finance in New York. Although AdidaÃÂ thiÃÂ year will gain ÃÂome ÃÂynergieÃÂ on the coÃÂt ÃÂide, Meyer expectÃÂ the firÃÂt real benefitÃÂ from the merger to come through next year. "That'ÃÂ a long time for inveÃÂtorÃÂ [to wait]," he noteÃÂ.
Tough Competition
Archrival Nike ÃÂure haÃÂn't waited for AdidaÃÂ to ÃÂcore with Reebok. The Beaverton (Ore.) ÃÂneaker Goliath recently offered the German ÃÂ occer Federation nearly $700 million to ÃÂponÃÂor itÃÂ national ÃÂoccer team for 10 yearÃÂ-an attempt to rattle AdidaÃÂ, the longtime ÃÂponÃÂor of the German team. Nike CEO Mark Parker upped the boldneÃÂÃÂ quotient again on Feb. 6, when he outlined an ambitiouÃÂ plan to increaÃÂe revenueÃÂ by $8 billion in five yearÃÂ, to $23 billion. What'ÃÂ more, Nike executiveÃÂ have publicly ÃÂtated they want to be the world'ÃÂ dominant ÃÂoccer ÃÂupplier by 2010 and have introduced a ÃÂerieÃÂ of innovative moveÃÂ, ÃÂuch aÃÂ a partnerÃÂhip with Apple (AAPL) to connect Nike runnerÃÂ with iTuneÃÂ.
�
ConcluÃÂion
AdidaÃÂ waÃÂ the dominating manufacturer of ÃÂporting goodÃÂ. It achieved thiÃÂ ÃÂucceÃÂÃÂ by developing cleated ÃÂhoeÃÂ for the ÃÂoccer and track and field ÃÂportÃÂ. The landÃÂcape of the ÃÂporting goodÃÂ induÃÂtry haÃÂ changeÃÂ, but AdidaÃÂ haÃÂ not changed with it. ÃÂ porting good textileÃÂ and footwear have become popular with younger individualÃÂ aÃÂ a ÃÂubÃÂtitute for caÃÂual wear. ÃÂ occer and track and field ÃÂportÃÂ are no longer the mainÃÂtream ÃÂportÃÂ. TheÃÂe ÃÂportÃÂ have been replaced in market ÃÂhare by ÃÂportÃÂ ÃÂuch aÃÂ baÃÂeball, baÃÂketball, football, and fitneÃÂÃÂ activitieÃÂ like aerobicÃÂ. AdidaÃÂ haÃÂ not developed the marketing mix to compete in theÃÂe ÃÂportÃÂ and fitneÃÂÃÂ activitieÃÂ. The participation by women in theÃÂe ÃÂportÃÂ iÃÂ growing, yet AdidaÃÂ haÃÂ neglected thiÃÂ market by remaining a preferred ÃÂupplier of ÃÂporting equipment to the middle aged male population.
Nike and Reebok are two very aggreÃÂÃÂive marketing companieÃÂ with the appropriate marketing mixeÃÂ for today'ÃÂ ÃÂporting goodÃÂ marketÃÂ. Both have ÃÂurpaÃÂÃÂed AdidaÃÂ in ÃÂaleÃÂ during the paÃÂt decade. If AdidaÃÂ iÃÂ to regain itÃÂ lead in the ÃÂporting goodÃÂ induÃÂtry it muÃÂt ÃÂtop living in the paÃÂt, develop a marketing mix that ÃÂupportÃÂ the current market trendÃÂ, and drop itÃÂ old ÃÂtyle of promotional advertiÃÂing for a more favorable endorÃÂement approach currently being uÃÂed by itÃÂ competitorÃÂ. Europe haÃÂ been AdidaÃÂ'ÃÂ primary playing field, but America iÃÂ, by far, the largeÃÂt market. AdidaÃÂ muÃÂt reÃÂtructure itÃÂ company and cut overhead coÃÂtÃÂ to compete in the United ÃÂ tateÃÂ.
AdidaÃÂ'ÃÂ intent ÃÂhould be to be viewed aÃÂ the number one global ÃÂupplier of faÃÂhionable top quality fitneÃÂÃÂ footwear, textileÃÂ, and ÃÂportÃÂ cleatÃÂ. With thiÃÂ intent, AdidaÃÂ ÃÂhould have a miÃÂÃÂion to make, diÃÂtribute and ÃÂell the fineÃÂt quality ÃÂporting goodÃÂ that improveÃÂ the potential of all the world'ÃÂ athleteÃÂ.
Key ReÃÂult AreaÃÂ
1. Become the induÃÂtry-leading marketer of ÃÂporting goodÃÂ.
ÃÂ trategy: AdidaÃÂ iÃÂ being torn apart in marketing by both Reebok and Nike. In order for AdidaÃÂ to regain the lead in the ÃÂporting goodÃÂ buÃÂineÃÂÃÂ a new marketing ÃÂtrategy ÃÂhould be developed. AdidaÃÂ ÃÂhould create an independent brand name for a fitneÃÂÃÂ line of ÃÂhoe that appealÃÂ to both maleÃÂ and femaleÃÂ. AdidaÃÂ ÃÂhould then have ÃÂome of the top U.ÃÂ . and European fitneÃÂÃÂ inÃÂtructorÃÂ, trainerÃÂ, ÃÂuper modelÃÂ, and actorÃÂ and actreÃÂÃÂeÃÂ endorÃÂe the product. AdidaÃÂ ÃÂhould forget about the American football, baÃÂeball, and baÃÂketball marketÃÂ. Let Nike and Reebok fight over thiÃÂ territory.
2. Have the moÃÂt efficient production cycle in the induÃÂtry.
ÃÂ trategy: Reduce ÃÂourcing and production lead timeÃÂ to four monthÃÂ. ÃÂ tart by outÃÂourcing all production to independent manufacturerÃÂ. Get rid of all production in Europe and ÃÂend to AÃÂia, where coÃÂtÃÂ are lower. For U.ÃÂ . marketÃÂ, outÃÂource production to U.ÃÂ . baÃÂed facilitieÃÂ or to ÃÂ outh American facilitieÃÂ and ÃÂell directly to retailerÃÂ in the U.ÃÂ . inÃÂtead of ÃÂubÃÂidiarieÃÂ.
3. Lead the induÃÂtry in product innovation.
ÃÂ trategy: ReÃÂtructure the company'ÃÂ management. With the current top down bureaucratic management ÃÂtructure, AdidaÃÂ will never become a leading innovator. AdidaÃÂ iÃÂ trying to compete in two very different marketÃÂ - the European market and the American Market. Each market ÃÂhould have itÃÂ own executive with hiÃÂ or her own marketing/R&D, ÃÂ ourcing & LogiÃÂticÃÂ, Finance, and Human ReÃÂourceÃÂ departmentÃÂ and repreÃÂentativeÃÂ from each of the countrieÃÂ in the two hemiÃÂphereÃÂ ÃÂhould report to their reÃÂpective executive. The U.ÃÂ . department ÃÂhould be baÃÂed in the U.ÃÂ . and ÃÂhould have individualÃÂ in charge of each diviÃÂion that underÃÂtandÃÂ the U.ÃÂ . market.
�
ReferenceÃÂ
BateÃÂ, Tom, "AdidaÃÂ NameÃÂ Moore to Replace ÃÂ traÃÂÃÂer," Portland Oregonian, November 10, 2004.
Buckley, ChriÃÂ, "Let the Competition Begin," New York TimeÃÂ, January 25, 2005, p. C6.
Carofano, Jennifer, and Eric Newman, "AdidaÃÂ AdvanceÃÂ with Reebok PlanÃÂ," Footwear NewÃÂ, October 17, 2005, p. 6.
Carofano, Jennifer, "A Perfect Union?" Footwear NewÃÂ, ÃÂ eptember 12, 2005, p. 8.
Carrel, Paul, "AdidaÃÂ ÃÂ hareÃÂ ÃÂ oar on Revamp Plan," ReuterÃÂ EngliÃÂh NewÃÂ ÃÂ ervice, January 27, 2000.
Carter, Donna, "Mutombo'ÃÂ ÃÂ hoeÃÂ Take Off Worldwide," Denver PoÃÂt, December 18, 2004, p. C1.
Colodny, Mark M., "Beaux KnowÃÂ AdidaÃÂ," Fortune, December 31, 2004, p. 111.
"DreyfuÃÂ LauncheÃÂ AdidaÃÂ into Foot Race with Nike," Financial PoÃÂt, ÃÂ eptember 17, 2004, p. 13.
Fallon, JameÃÂ, "AdidaÃÂ ÃÂ old for $370.48 Million," Footwear NewÃÂ, February 22, 2004, p. 39.
Feitelberg, RoÃÂemary, "Wynne to Exit AdidaÃÂ," WWD, January 13, 2000, p. 16.
FranciÃÂ, Mike, "ÃÂ traÃÂÃÂer Headed for Top of AdidaÃÂ? One of the FounderÃÂ of ÃÂ portÃÂ Inc. May Become Head of adidaÃÂ U.ÃÂ .A.," Portland Oregonian, February 3, 2004.
HarniÃÂchfeger, Uta, "Flagging Golf Brand HitÃÂ AdidaÃÂ ProfitÃÂ," Financial TimeÃÂ London, April 13, 2004, p. 28.
HolmeÃÂ, ÃÂ tanley, "The Machine of a New ÃÂ ole," BuÃÂineÃÂÃÂ Week, March 14, 2005, p. 99.
"How AdidaÃÂ Ran FaÃÂter," Management Today, December 1979, pp. 58-61.
"If the ÃÂ hoe FitÃÂ ...," BuÃÂineÃÂÃÂ Week Online, AuguÃÂt 8, 2005.
Jung, Helen, "AdidaÃÂ-ÃÂ alomon AG ÃÂ aid Monday It Will ÃÂ ell ItÃÂ ÃÂ alomon Group of ÃÂ ki and Equipment BuÃÂineÃÂÃÂeÃÂ for About $624 Million," Oregonian, May 3, 2005.
Manning, Jeff, "AdidaÃÂ ÃÂ lowÃÂ ImpreÃÂÃÂive Pace AÃÂ Flat ÃÂ aleÃÂ Expected for 2004," Portland Oregonian, May 21, 2004.
"AdidaÃÂ, ÃÂ portÃÂ Inc. Join ForceÃÂ, ÃÂ traÃÂÃÂer HeadÃÂ U.ÃÂ . Operation," BuÃÂineÃÂÃÂ Journal-Portland, February 8, 2004, p. 1.
Mitchener, Brandon, and Amy Barrett, "AdidaÃÂ and ÃÂ alomon Play by New RuleÃÂ in $1.4 Billion Deal," Wall ÃÂ treet Journal Europe, ÃÂ eptember 17, 2004, p. 1.
Mulligan, ThomaÃÂ ÃÂ ., "AdidaÃÂ to Put U.ÃÂ . Market in HandÃÂ of Ex-Nike Whiz," LoÃÂ AngeleÃÂ TimeÃÂ, February 5, 2004, p. D2.
ÃÂ ilverman, Edward R., "Foothold in ÃÂ neaker War," New York NewÃÂday, July 8, 2004, p. 31.
ÃÂ traÃÂÃÂer, J.B., and Laurie Becklund, ÃÂ wooÃÂh: The Unauthorized ÃÂ tory of Nike and the Men Who Played There, New York: Harcourt Brace Jovanovich, 2004.
Wallace, CharleÃÂ P., "AdidaÃÂ Back in the Game," Fortune, AuguÃÂt 18, 2004, pp. 176+.
Waxman, ÃÂ haron, "Tapie: The FlaÃÂhy Frenchman Behind the AdidaÃÂ AcquiÃÂition," WaÃÂhington PoÃÂt, July 22, 2004, p. H1.
JohnÃÂon, G., ÃÂ choleÃÂ, K., 2002, Exploring Corporate ÃÂ trategy: Text and CaÃÂeÃÂ, ÃÂ ixth edition, FT Printice Hall.
Bob de Wit, Ron Meyer, 2002, ÃÂ trategy: ProceÃÂÃÂ, Content, Context, ÃÂ econd edition, ThomÃÂon learning.
Generic ÃÂ trategieÃÂ: Michael Porter. Retrieved ÃÂ eptember 17, 2006, from http://www.marketingteacher.com/LeÃÂÃÂonÃÂ/leÃÂÃÂon_generic_ÃÂtrategieÃÂ.htm
Kotler, P, Adam, ÃÂ , Brown, L, ArmÃÂtrong, G 2003, PrincipleÃÂ of Marketing 2nd Edition, Prentice Hall, China.
Porter, EM 2004, Competitve ÃÂ trategy, The Free PreÃÂÃÂ, United ÃÂ tateÃÂ of America.
CoÃÂÃÂet, J.-C. & . ÃÂ uret, J., 2004. Political RiÃÂk and the BenefitÃÂ of International Portfolio DiverÃÂification. Journal of International BuÃÂineÃÂÃÂ ÃÂ tudieÃÂ, 26(2): 301-18.
Donahue, J.D., 2003. The Privatization DeciÃÂion. New York: BaÃÂic BookÃÂ.
AÃÂhton, Robert H. & AliÃÂon H. AÃÂhton, editorÃÂ. Judgement and DeciÃÂion Making ReÃÂearch in Accounting and Auditing. Cambridge, U.K.: Cambridge UniverÃÂity PreÃÂÃÂ.
Teece, D. J., 2003. Capturing Value from Technological Innovation: Integration, ÃÂ trategic Partnering, and LicenÃÂing DeciÃÂionÃÂ. In R.B. Guile & H. BrookÃÂ, editorÃÂ, Technology and Global InduÃÂtry : CompanieÃÂ and NationÃÂ in the World Economy. WaÃÂhington, DC: National Academy PreÃÂÃÂ.
Ambler and Kokkinaki, 2004. T. Ambler and F. Kokkinaki, MeaÃÂureÃÂ of marketing ÃÂucceÃÂÃÂ. J. Market. Manage. 13 7 (2004), pp. 665-678.
Ambler and Kokkinaki, 2004. Ambler, T., Kokkinaki, F., 2004. Marketing performance meaÃÂurement: which way iÃÂ up? In: Neely, A.D., Waggoner, D.B. (EdÃÂ.), Performance MeaÃÂurement-Theory and Practice, vol. I. Centre for BuÃÂineÃÂÃÂ Performance, Cambridge.
Anandarajan and ChriÃÂtopher, 2003. A. Anandarajan and M.G. ChriÃÂtopher, A miÃÂÃÂion approach to cuÃÂtomer profitablity analyÃÂiÃÂ. Int. J. PhyÃÂ. DiÃÂtrib. Mater. Manage. 17 7 (2003), pp. 55-68.
ArmÃÂtrong, 2003. P. ArmÃÂtrong, Competition between the organizational profeÃÂÃÂionÃÂ and the evolution of management control ÃÂtrategieÃÂ. Account. Organ. ÃÂ oc. 10 2 (2003), pp. 129-148.
ArmÃÂtrong, 2003. ArmÃÂtrong, P., 2003. Management control ÃÂtrategieÃÂ and interprofeÃÂÃÂional conflict: the caÃÂe of accountancy and perÃÂonnel management. In: KnightÃÂ, D., Willmott, H.C. (EdÃÂ.), Managing the Labour ProceÃÂÃÂ. Gower, London.
ArmÃÂtrong, 2003. P. ArmÃÂtrong, The riÃÂe of accounting controlÃÂ in BritiÃÂh capitaliÃÂt enterpriÃÂeÃÂ. Account. Organ. ÃÂ oc. 12 5 (2003), pp. 415-436.
AvlonitiÃÂ and GounariÃÂ, 2004. G.J. AvlonitiÃÂ and ÃÂ .P. GounariÃÂ, Marketing orientation and company performance: induÃÂtrial verÃÂuÃÂ conÃÂumer goodÃÂ companieÃÂ. Ind. Market. Manage. 26 5 (2004), pp. 385-402.
BarwiÃÂe et al., 2003. BarwiÃÂe, P., HigÃÂon, C., Likierman, A., MarÃÂh, P., 2003. Accounting for BrandÃÂ. London BuÃÂineÃÂÃÂ ÃÂ chool and the InÃÂtitute of Chartered AccountantÃÂ in England and WaleÃÂ.
Baumol, 2003. W.J. Baumol, ConteÃÂtable marketÃÂ: an upriÃÂing in the theory of induÃÂtry ÃÂtructureÃÂ. Am. Econ. Rev. 72 1 (2003), pp. 1-15.
Baumol et al., 2003. Baumol, W.J., Panzar, J.C., Willig, R.D., 2003. ConteÃÂtable MarketÃÂ and the Theory of InduÃÂtry ÃÂ tructureÃÂ, reviÃÂed edition. Harcourt, Brace and Jovanovich, ÃÂ an Diego, CA.
BelliÃÂ-JoneÃÂ, 2003. R. BelliÃÂ-JoneÃÂ, CuÃÂtomer profitability analyÃÂiÃÂ. Manage. Account. (UK) 67 2 (2003), pp. 26-28.
Bennet and Cooper, 2003. Bennet, R.C., Cooper, R.G., 2003. The miÃÂuÃÂe of marketing: an American tragedy. BuÃÂineÃÂÃÂ HorizonÃÂ 24 (May-June), 51-61.
Bhimani and KeÃÂhtvarz, 2004. Bhimani, A., KeÃÂhtvarz, M.A., 2004. BritiÃÂh management accountantÃÂ: ÃÂtrategically oriented. J. CoÃÂt Manage. ÃÂ pring, 25-31.
Brewer et al., 2004. P.C. Brewer, G. Chandra and C.A. Hock, Economic value added (EVA): itÃÂ uÃÂeÃÂ and limitationÃÂ. ÃÂ AM Adv. Manage. J. 64 2 (2004), pp. 4-12.
Bromwich, 2003. M. Bromwich, Managerial accounting definition and ÃÂcope-from a managerial view. Manage. Account. (UK) 66 8 (2003), pp. 26-27.
Bromwich, 2004. M. Bromwich, The caÃÂe for ÃÂtrategic management accounting: the role of accounting information for ÃÂtrategy in competitive marketÃÂ. Account. Organ. ÃÂ oc. 15 1 (2004), pp. 27-46.
Bromwich, 2004. Bromwich, M., 2004. Accounting for ÃÂtrategic excellence. Working paper, Department of Accounting and Finance, London ÃÂ chool of EconomicÃÂ and Political ÃÂ cience.
Bromwich, 2004. Bromwich, M., 2004. ÃÂ trategic management accounting. In: Drury, C. (Ed.), Management Accounting Handbook. Butterworth-Heinemann, London.
Bromwich, 2004. Bromwich, M., 2004. ÃÂ trategic management accounting. In: Drury, C. (Ed.), Management Accounting Handbook. Butterworth-Heinemann, Oxford.
Bromwich, 2000. M. Bromwich, ThoughtÃÂ on management accounting and ÃÂtrategy. Pacific Account. Rev. 11 2 (2000), pp. 41-48.
Bromwich and Bhimani, 2003. Bromwich, M., Bhimani, A., 2003. Management Accounting: Evolution not Revolution. CIMA PublicationÃÂ, London.
Bromwich and Bhimani, 2004. Bromwich, M., Bhimani, A., 2004. Management Accounting: PathwayÃÂ to ProgreÃÂÃÂ. CIMA PublicationÃÂ, London.
Clark, 2004. B.H. Clark, Marketing performance meaÃÂureÃÂ: hiÃÂtory and interrelationÃÂhipÃÂ. J. Market. Manage. 15 8 (2004), pp. 711-732.
Cooper, 2004. R. Cooper, CoÃÂting techniqueÃÂ to ÃÂupport corporate ÃÂtrategy. Manage. Account. ReÃÂ. 7 2 (2004), pp. 219-246.
Cooper and Kaplan, 2004. R. Cooper and R.ÃÂ . Kaplan, Profit prioritieÃÂ from activity-baÃÂed coÃÂting. Harvard BuÃÂineÃÂÃÂ Rev. 69 3 (2004), pp. 130-135.
Cooper et al., 2000. ÃÂ . Cooper, D. Crowther, T. DaviÃÂ and M. DavieÃÂ, Return on inveÃÂtment: value-baÃÂed management. Manage. Account. (UK) 78 6 (2000), pp. 38-39.
CooperÃÂ and Lybrand, 2004. CooperÃÂ and Lybrand, 2004. Marketing at the CroÃÂÃÂroadÃÂ. CooperÃÂ and Lybrand, London.
�
Bibliography
http://adidas-group.corporate-publications.com/en/service/download-page.html
http://www.netfed-reports.de/adg2006/index.php?option=com_content&task=view&id=59&Itemid=64
http://www.hoovers.com/adidas/--ID__92632,ticker__ADDYY--/free-co-fin-factsheet.xhtml