The History Of Adidas

Through the restructuring that started in 2005, the restructuring involved are explained as below. Adidas had lineup sporting goods comprise of three different business segments, including Adidas, Salomon and Taylor Made. Adidas business segment provides various Sathletes’ products. Adidas business segments has three different products line, including Adidas Sport Style, Adidas Sport Heritage, and Adidas Sport performance. On the other hand, Salomon business segment is the number one brand that provides winter sports like snowboard, Alpine and Nordic. The Salomon business segment has five different products line, including Cliché, Arc’ Teryx, Bonfire, Mavic – Adidas cycling, and Salomon. Next, Taylor made business segment provides a variety of golf hardware and accessories in full range. The Taylor made business segment has five different products line, including Adidas golf and MAXFLI.
It is found that there was not a common approach utilized in managing company’s lineup of sporting goods prior to restructuring started in 2005. Although Adidas has diversified in the sporting industry, the company still failed to realize resources fit within the business segments. Furthermore, there are integration problems between Adidas athletic footwear business unit with Salomon’s business units. As the business segments are too diverse, different raw materials and labors as well as processes are required to develop products that did not allow company to capitalize on any value chain. In serving different needs throughout the diversification, the three business segments made with different product mix has faced problems to cross promote the merchandise. In addition, through the varied demands of each business segment, there are no economie...

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...o position on each of sporting goods segments where they compete.
Except for the marketing activities no other activities fit between Adidas and Salomon business unit. Only one value chain match-up between Adidas and Salomon business unit is their combining marketing, operation and sales activities. Salomon business is more focused towards winter sporting goods while Adidas core business is athletic footwear and accessories. Adidas were unable to add the value from their core competencies on any of Salomon’s products. The reason is that, manufacturing and distributing of bicycle hardware is different from the manufacture of athletic footwear. Therefore, Adidas needed individual suppliers and different man manpower for the Salomon business unit which decreases their ability to perform and ultimately Adidas had to divest Salomon business unit from their portfolio.