Adidas-Salomon Case Study

Adidas - Salomon Executive Summary Since its founding in 1949, Adidas is the leader in innovation, which is also their main competitive advantage in the market. In addition to innovation, the company stands out on the market with its powerful global marketing and advertising program with its strong brand equity. With the acquisition of Salomon in 1998, the company became Adidas - Salomon, becoming the world's second largest sports equipment company. There is a strategic agreement between Adidas and the core competency of Solomon, but it is clear that these differences do not reveal these synergistic effects.

Adidas' mission statement stated that "Adidas - Solomon is the world leader in the sporting goods industry and sports brands are built on the passion for sports and sports lifestyle" (Adidas - Salomon) They are always looking for high quality and high value products. Their main goal is to be a company that is highly appreciated around the world, a rapidly growing, profitable company. Adidas also believes it is customer-centric. Every piece of product manufacturing and design depends on whether it brings happiness to customers.

After almost bankruptcy in 1993, the German adidas re-emerged as one of the leaders in the field of sports shoes. Adidas - Salomon uses Adidas, Solomon, Taylor Manufacturing, Mavic and Bonfire brands to design, develop and sell a wide range of sports and active lifestyle footwear, apparel and hardware products. Adidas - Salomon products are sold in more than 160 countries (www.SportsLine.com). Adidas - Salomon has sneakers from tennis to basketball. This site has a wide range of sneakers and many sportswear. The price of the item is about the same as the price of the retail store. Adidas.com provides online commercials for athletes such as Kobe Bryant, Anna Kournikova, Peyton Manning, and provides users with insight about each of them.

According to data analysis, the following conclusions are derived One important advantage is the high-performance shoes manufactured by Adidas-Salmon. Thanks to efficient shoe making (adidas.com), they were able to attract hard core athletes as customers. Adidas recently announced that it will sell the Salomon brand to Amer Sports Corporation for $ 624 million. This move will raise Adidas from Salomon's brand that was sluggish recently, and it lost 1% and 74% of revenues in 2004. The sharp decline in operating income is attributable to the recent restructuring that the production of Salomon products in France decreased by 55% from 55%, and the new production in Romania and China declined. Adidas shares rose by 2% due to the sale, the highest for six years. On the other hand, the stock price of Amer Sports rose 6%