Adidas: A Case Study on Marketing Strategy, Business Practices, and Sustainability

Adidas is a German multinational corporation that designs and manufactures athletic and casual footwear, apparel, and accessories. Founded in 1949 by Adolf Dassler, the company has grown to become one of the world's leading sports brands. In this case study, we will examine Adidas's history, marketing strategy, and business practices.

History of Adidas

Adidas was founded in 1949 by Adolf Dassler after a falling out with his brother, who went on to find Puma. The name "Adidas" comes from a combination of Dassler's first and last names, Adi and Das. The company initially produced athletic footwear but quickly expanded into apparel and accessories.

In the 1960s, Adidas became the official footwear supplier for the German national soccer team, and the company's iconic three-stripe logo became synonymous with the sport. In the following decades, Adidas expanded into other sports, including basketball, tennis, and running.

Marketing Strategy

Adidas has long relied on celebrity endorsements and high-profile sponsorships to promote its products. For example, in the 1980s, the company signed basketball superstar Michael Jordan to a sponsorship deal; in the 1990s, it signed tennis star Andre Agassi.

More recently, Adidas has focused on collaborating with artists, designers, and other brands to create limited-edition products. These collaborations have helped to generate buzz and appeal to a broader audience. For example, Adidas has worked with designer Stella McCartney on a line of women's athletic wear and with rapper Kanye West on a line of sneakers.

In addition to its marketing efforts, Adidas has also made sustainability a key focus of its business strategy. The company has set ambitious goals for reducing its environmental footprint and increasing its products' use of sustainable materials.

Business Practices

Adidas has faced criticism in the past for labour practices in its supply chain. As a result, the company has implemented several initiatives to improve working conditions and protect workers' rights. These include conducting regular audits of suppliers and providing training and support to help suppliers meet labour standards.

In addition to improving labour practices, Adidas has also taken steps to reduce its environmental impact. For example, the company has set a goal of using only recycled polyester in all its products by 2024. It has also committed to reducing its operations and supply chain greenhouse gas emissions.

Conclusion

Adidas is a leading sports brand with a long history of producing high-quality athletic footwear, apparel, and accessories. The company has relied on celebrity endorsements and high-profile sponsorships to promote its products, and it has also made sustainability a key focus of its business strategy. In addition, while Adidas has faced criticism for labour practices in its supply chain, it has taken steps to improve working conditions and protect workers' rights. Overall, Adidas is a solid and respected brand that will likely continue to thrive in the competitive sports market.