Adidas 2008 Study Case
Adidas in 2008: has corporate reestructuring increased shareholder value
February 25, 2010
ADIDAS IN 2008: HAS CORPORATE REESTRUCTURING INCREASE SHAREHOLDER VALUE?
1. Introduction (History)
Gebrüder Dassler Schuhfabrik was established in Germany around 1920 by two brothers Adolf Dassler and Rudolf Dassler whom in 1948 decided to separate and created their own firms. The first one called Adidas (Adolf-Adi) and the second Puma. After the World Cup in 1954 Adidas become in a famous brand when Germany team decided to wear it, followed by the sponsoring of sports stars. After the death of Adi Dassler in 1978, his Horst son remained to the front of Adidas. Horst was only president until 1987, when it died to the 51 years. After this event, the company begins to cross one serious crisis, mainly due to the push of Nike.
In 1990 Adidas was bought for Bernard Tapie (244 million Euros), but he was declared in bankruptcy in 1992, being the bank Credit Lyonnais the one in charge to sell Adidas to Robert Louis-Dreyfus, friend of Bernard Tapies. In 1997 Adidas bought the French manufacturer of equipment of ski Salomon and created Accept A.G.
In 2001, Herbert Hainer took of the position company CEO. In 2002, Adidas-Salomon was the first sport brand in launching the Customization Experience, a strategy where customers can create and devise their ideal products. In the 2005, Adidas announced the sale of the company Salomon Group, by 485 million € to Amer Sports, a Finland company in the same year, Adidas bought Reebok its rival by 3.8 trillions of dollars. In this way Adidas was able to approach more to the leader company, Nike.
2. External Analysis
a) PESTLE
Political | Policies to protect human health (eliminate PVC).Policies to protect the employees’ human rights (especially in Asia). | Economical | Helps countries to reduce unemployment.Most factories in Asia because is cheaper. | Social | Products for everyone, especially whom likes
February 25, 2010
ADIDAS IN 2008: HAS CORPORATE REESTRUCTURING INCREASE SHAREHOLDER VALUE?
1. Introduction (History)
Gebrüder Dassler Schuhfabrik was established in Germany around 1920 by two brothers Adolf Dassler and Rudolf Dassler whom in 1948 decided to separate and created their own firms. The first one called Adidas (Adolf-Adi) and the second Puma. After the World Cup in 1954 Adidas become in a famous brand when Germany team decided to wear it, followed by the sponsoring of sports stars. After the death of Adi Dassler in 1978, his Horst son remained to the front of Adidas. Horst was only president until 1987, when it died to the 51 years. After this event, the company begins to cross one serious crisis, mainly due to the push of Nike.
In 1990 Adidas was bought for Bernard Tapie (244 million Euros), but he was declared in bankruptcy in 1992, being the bank Credit Lyonnais the one in charge to sell Adidas to Robert Louis-Dreyfus, friend of Bernard Tapies. In 1997 Adidas bought the French manufacturer of equipment of ski Salomon and created Accept A.G.
In 2001, Herbert Hainer took of the position company CEO. In 2002, Adidas-Salomon was the first sport brand in launching the Customization Experience, a strategy where customers can create and devise their ideal products. In the 2005, Adidas announced the sale of the company Salomon Group, by 485 million € to Amer Sports, a Finland company in the same year, Adidas bought Reebok its rival by 3.8 trillions of dollars. In this way Adidas was able to approach more to the leader company, Nike.
2. External Analysis
a) PESTLE
Political | Policies to protect human health (eliminate PVC).Policies to protect the employees’ human rights (especially in Asia). | Economical | Helps countries to reduce unemployment.Most factories in Asia because is cheaper. | Social | Products for everyone, especially whom likes