Marketing Analysis and Market Structure of Adidas Company

MARKETING ANALYSIS
AND MARKET
STRUCTURE OF ADIDAS
COMPANY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Organisation and its overview.....................................................................................................3
Current Market structure of Adidas.............................................................................................4
Transformation and characteristics of Market structure of Adidas.............................................6
Analysing the Market structure.................................................................................................10
Government Intervention – Good or Bad..................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Market Analysis is the most significant process to be done by the companies that are newly
started and the established companies who want to expand itself in other countries. In this the
market structure plays a major role because it evaluates the way the business can be structured
according to the characteristics of the market in terms of buyers and sellers and their relationship.
Adidas, being a multinational corporation, deals in designing and manufacturing of shoes,
accessories and clothing has its headquarter in Germany. It is the largest manufacturer of
sportswear in Europe and second largest in World.
The report below will describe the history of the company Adidas along with its products and
services. It will also evaluate the type of market in which Adidas is operating since years by
focusing on the previous market structure. It will finally suggest that the company should adapt
different market structure or not along with the impact of the government intervention.
Organisation and its overview
Adidas is world known accessories and apparel industry with headquarter in Germany. Its
key products and services include manufacturing of clothing, accessories and shoes. The
sportswear and shoes of the company are known to be its unique selling products.
History: Organisation was founded by Adolf Adi Dassler. In the initial days of organisational
development, he used to develop spiked running shoes for the athletic events. From initial days
as well a greater emphasis has been laid on quality of products. When US sprinter Jesse Owens
won gold medals with the Adidas made handmade spike then it gains immense popularity and
faith from the people. In 1947 Dassler brothers separated and Rudolf formed a firm known as
Puma at present and Dassler formed formally registered firm Adidas.
Products and services: Organisation provides clothing range for both women and men such as
pants, leggings, jackets, hoodies and t shirts. In addition to the sportswear Adidas also focuses on
associated game kits and equipments for football and other games. Organisation always tries to
bring innovative and comfortable foot wear for sports. With the beginning of 2000s along with
the sports performance organisation also initiated to introduce new and creative lifestyle
segments emphasising on sports inspired street wear (History, 2020). In 2006 an additional
milestone was added to success of company when Adidas acquired Reebok and thus providing
the best sporting good services from the leading service provides of the world. In order to gain
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competitive success company is also trying to integrate digital technology for making its brand
fast and as an open source platform for athlete and consumers for partnership with company.
Current Market structure of Adidas
Adidas is one of the leaders in sportswear production across globe including sport shoes,
clothing and accessories etc. It is the top producers in Europe and second largest worldwide after
Nike. Adidas is a multinational corporation, founded and headquartered in Herzogenaurach,
Germany. The Adidas group consists of Reebok, Runtastic and TaylorMade. Some of Adidas'
major competitors are Nike, Under Armour and Puma. Currently, Adidas operates in a
oligopolistic market structure. An Oligopoly is that form of market structure in which few
companies dominate the specific industry and share very similar product rages with huge amount
of investment. Such companies completely control and lead the market share of that industry.
Adidas and its rival Nike currently control more than 60% of the market share of sportswear
clothing and footwear industry. Other companies that are operating in the industry are Puma,
under amour, new balance, Sketchers, Asics, Lululemon etc.
Figure 1: Market Share of Adidas
Source: Jacob Sonenshine, 2018, Wedbush securities Estimates
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