Adidas Case Discussion

Adidas: Will Restructuring Its Business Lineup Allow It to Catch Nike

Case Discussion Assignments

Assignment 1: Prepare a competitive strength assessment for adidas-Salomon’s four business groups prior to restructuring. Use the table below to summarize your assessment.

Feel free to add to the list of competitive measures. Assign weights to the importance of each measure (remember the sum of the weights should equal 1.0). Assign each business a strength measure using the scale below. If you lack data to assign a strength measure, use a rating of 5 or average on that measure to avoid biasing your overall strength ratings.

Scale 1 = very weak 5 = average 10 = very strong

Competitive Strength Measure

Weight

Adidas

Salomon

Mavic

Taylor Made

Relative market share -2 6 8 10 8

Marketing and promotion -2 6 5 5 8

Product innovation capabilities -2 9 7 5 9

Distribution capabilities -1 7 6 5 8

Resource match to industry KSFs -1 5 5 5 5

Brand name recognition/image -2 8 10 9 9

Totals 10 72 69 68 8

Assignment 2: Prepare an industry attractiveness assessment for the adidas-Salomon business lineup as of 2004. use the table below to summarize your assessment.

Feel free to add to the list of attractiveness measures. Assign weights to the importance of each measure (remember the sum of the weights should equal 1.0). Rate each industry on each of the factors using the scale below.

Scale 1 = low attraciveness 5 = medium attractiveness 10 = very high attractiveness

Attractiveness Measures

Weight

Athletic Footwear & Apparel

Winter Sports equipment

Bicycle Components

Golf Equipment

Market size and growth rate .2 7 4 3 9

Industry profitability .2 8 3 3 9

Intensity of competition .2 9 5 4 9

Emerging opportunities and threats .1 9 5 7 8

Resource requirements .1 8 7 5 8

Product innovation .1 8 7 7 9

Social, political, environmental .1 9 5 5 9