Adidas strategy Essay

Adidas AG is one of the world leaders in sportswear, equipment and accessories. In 2011, the company recorded a net income of $934.3 one thousand thousand, an increase of 18.3% over fiscal year 2010. Adidas excellence stems from its strong focused differentiation strategy. Focus on research and increment has facilitated continuous development of new products and it plans to leverage its strong trade name portfolio to create profits from its innovative products and by establishing robust retail operations.adidas goal is to be the leading sports brand in the world. One major lever to achieve this is the brands broad and unique product portfolio spanning from apparel and footwear for professional athletes to premium fashion. The companys leading market position is built on its portfolio of strong brands like adidas, reebok, and TaylorMade. It allows adidas to address multiple consumer needs, exploit market opportunities from various angles as well as be less affected by one-dimensiona l market risks. adidas commitment to product innovation by focusing on research and development differentiates the brand from competitors and provides a solid platform for future growth. 1) DistributionStrong brand portfolio to establish a strong retail presence and increase profit margins by increasing retail sales as a percentage of total sales. Adidas currently operates 2,041 stores for the adidas and Reebok brands worldwide. Adidas strong brand and enhanced retail presence generates brand loyalty, which enables easier guest recall and gives adidas a competitive advantage. Revenue $18,580.2 million 11.3%Operating profit $1,407.7 million 13.1%170 subsidiaries in Europe, the Americas and AsiaWholesale, retail and other businesses2) Research and development$160.1 million in R&D