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Mi – Adidas Concept Essay

2495 words - 10 pages

Final ProjectMi - Adidas CONCEPTSubmitted to: Dr. Chafic AbidCompany History:It all began in 1920, when Adolph"Adi" Dassler and his brother Rudolph madeTheir first shoes in Herzogenaurach, a small village in the south of GermanyUsing the basic materials available after World War I, Rudolph began makingSlippers with soles made from old tires. Adi converted the slippers into gymnasticsShoes and soccer shoes with nail-on studs or clears. The idea was as simple as it was brilliant: provide every athlete with the best possible equipment.At the 1928 Amsterdam Olympics, German athletes showcased Dassler shoes to the world. In the 1936, the brothers achieved a major breakthrough when Jesse OwensAgreed to wear their shoes in the Berlin Olympics, where he won four goldmedals. By 1937 the Dassler brothers were manufacturing shoes for more than 11 different sports. In 1948 the two brothers quarreled and Rudolph left to establishthe Puma sports company, while Adi registered the name adidas and thefollowing year adopted its now famous three diagonal stripe trademark. The firstsamples of adidas footwear were used at the 1952 Helsiniki Olympics.In 1954 Germany won the World Cup, wearing new screw-in studs on adidas soccer Shoes. In 1963 the first adidas soccer ball was produced and clothing was added to the product range in 1967. By the Montreal Olympics in 1976, over 80% of medalwinners were adidas- equipped athletes. Business was booming and Adidas had becomea household name in the sporting arena, synonymous with sporting achievement.In 1989 the Dassler family withdrew from the company, and the enterprise was transformed into a corporation. Bernard Tapie, a French business tycoon, took over but was soon jailed following his involvement in a soccer-fixing scandal.Subsequently, adidas was declared bankrupt and left to a number of French banks.In 1993 French-born Robert Louis-Dreyfus was appointed chairman of theexecutive board of adidas. Having purchased 15% of the company, Louis-Dreyfuswas a majority shareholder and led a stunning turnaround for the company andinitiated adidas' flotation on the stock market in November1995.In 1997 adidas acquired Salomon Group, and the company's name changed toAdidas- Salomon.In 2001 Herbert Hainer took over as chairman and CEO. Adidas-Salomon AG'stotal net sale grew to 6.1 billion Euro with net income of 208 million Euro. It employed 14,000 people and commanded an estimated 15% world market share.Global footwear market:In 2000, the global footwear market was US$16.4billion. North America accounted for 48%, Europe 32% and Asia/pacific 12% of the market. The degree of concentration of this market was relatively high; just three companies were controlling roughly 60% of the market. Nike commanded 35%, adidas 15%, and Reebok 10% market share. Nike was stronger in the US market than Europe market, and adidas was stronger in Europe market then US market.As mentioned in the history of the company, today adidas-Salomon AG had been...

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