Industry Analysis and Environmental Business Case Study

Industry Analysis and Environmental Business Case Study

Introduction - Industry Analysis and Environmental Business

The footwear around the globe is growing very rapidly because of the growing footwear demand of the individuals. The innovation of sport footwear increased in recent years therefore the companies have aggressively adopted various modern strategies in their production. World popular footwear industry Adidas is known for its dynamic performance in the market and it got huge responses from individuals all around the globe. The organization was introduced in the year “1949 and has its headquarter in Herzogenaurach, Germany”. Not footwears but also the company is known for furnishing and manufacturing great qualities of clothes along with essential accessories. This organization is the largest producer in Europe while being second in the world. The total revenue of Adidas reached €19.29 B in the year 2016. A. Dassler started Adidas in the house of his mother and was later joined by Rudolf, his elder brother in the year 1924. After some years a conflict between the two brothers made Rudolf start his own company named Puma which became the rival of Adidas later. As a means of marketing aid, Adidas’ logo can be determined by the 3 black stripes designed on the footwear along with the clothes made by the company.

Introduction to footwear sport industry

Footwear all throughout the planet is becoming quickly in light of the developing footwear interest of the people. The development of game footwear expanded as of late subsequently the organizations have forcefully taken on different current techniques in their creation. The growing demand of trending, comfortable and fashionable sports footwear is becoming an essential factor for the companies to enhance their performance and serve the consumers better.

Sub Sectors

Adidas is known for manufacturing all sorts of footwear, accessories, clothes and apparel.

Various organizations in the footwear sports industry

There are numerous organizations which are involved in the footwear sports industry such as Adidas, Asics, Nike, Air Jordan, Reebok, Puma, Fila, K-swiss and many more.

Key figures

• Total number of retail stores of Adidas in the year 2020 became 2,456.
• Total number of worldwide workers of Adidas in the year 2020 became 62,285.
• Yearly revenue of Adidas reached €19.29 B.
• The “brand value of Adidas became 16.5 B US Dollars”.

Revenue

Adidas is the highest producer of footwear in Europe while being at second highest in the world with a total yearly revenue of €19.29 B along with the “brand value of 16.5 B US Dollars”.

Aims and Objectives

Adidas is involved in the manufacturing of sports footwear with the objective of spreading social awareness of the necessity of sports in human life to the individuals. According to the company, sport is the centre of every individual and the culture to bring happiness in their life. Serving their consumers in a better and efficient manner by giving favorable services to them has always been an essential objective of Adidas.

Vision and Mission

Athletes never look for average performance and so neither does the Adidas Company. The mission of the company is very clear to become the best and effective brand of sports footwear in the world. Each and everyday Adidas sells more than millions of products and gives effective services to the individuals around the world in a very sustainable manner. The company is best for its credibility and sustainability across the globe.

Competitors

The competitors of Adidas are Asics, Nike, Air Jordan, Reebok, Puma, Fila, K-swiss and many more.

Stakeholders

The stakeholders of Adidas are those who get influenced by the business activities of the company or often the business gets affected by them. These stakeholders are as mentioned below:

• Workers of the organization
• Board of Directors
• Authorised government
• Shareholders
• Retailers, distributors and consumers

Market share and position

The market share of Adidas is about 6% and it stands at third number in the market of footwear industry right after Nike and Jordan.

Brand awareness

Adidas has focused on the 3 major brand strategies which are urbanization, speed and very creative innovation.

Customer base

All the age groups of individuals are used to buying footwear from Adidas but the company attracts 40-45 years of age individuals more.

Goods and services

Adidas is known for manufacturing all sorts of footwear, accessories, clothes and apparel.

Number of workers

The total number of worldwide workers of Adidas in the year 2020 became 62,285.

Net worth of Adidas

The total net worth of Adidas Organization is €19.29 B.

Geographical presence

The headquarter of Adidas is located in Germany while it has many locations of business “around the world such as Hong Kong, England, Portland, Taiwan, Japan, Spain, Toronto and Australia”.

Ceo (Kasper Rorsted)

Chairman Board

Impact analysis of Adidas

Categories of risk	Potential impact	Change (2019)	Likelihood	Change (2019)
Risk formed because of Covid pandemic	Essential	-	30%-50%	-
Risks formed due to social and macroeconomic factors	Essential	-	30%-50%	Increasing by 15%
Related risk to the demand of the customers along with offering the product	Essential	Highly increasing	15%-30%	-
Risk formed due to retail environment and competition	Essential	Highly increasing	15%-30%	Decreasing by 30%-50%
Risks arise because of business partner	Essential	-	15%-30%	Increasing by 15%
Personnel risks	Very high	Medium increasing	30%-50%	Increasing by 15%
Risks related to activities of stakeholder and media	Medium	Highly decreasing	30%-50%	Increasing by 15%
Related risks about IT along with cyber safety and security	Essential	-	More than 15%	-
Risks of project	Essential	-	More than 15%	-
Related risks about regulations of custom and tax	Essential	-	More than 15%	-
Risk compliance	Essential	-	More than 15%	-

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Reference list

Journals

Muhamad Fauzi, N., 2021. Technology Entrepreneurship (ENT600): Adidas Group.

Parfenov, M. and Akaev, E., 2019. Improving Advertising Activity of the Organization–Case: Adidas.

Schmid, S., Dauth, T., Kotulla, T. and Leding, P., 2018. Adidas and Reebok: Is Acquiring Easier than Integrating?. In Internationalization of Business (pp. 27-61). Springer, Cham.

HR, G. and Aithal, S., 2020. Rational Organizational Structure: For Brick-and-Mortar Lifestyle Retailers in India to Overcome Diseconomies of Scale and Protect Firm’s Sustainability (ROLS-b).

Kozak, D., 2018. The development of a sustainability strategy with a focus on environmental issues in the context of MNCs: the business case of Adidas (Doctoral dissertation).