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SITUATION ANALYSIS
AdidasAG
(pronounced[AH-dee-'dahs]; often in English,FWB:ADS) is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, Taylor Made- adidas golf company, andRockport. Besides sports footwear, the company also produces other products such as bags, shirts, and other sports and clothing related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, to its US rival Nike. The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo. The company revenue for 2008 was listed at€10.799 billion and the 2007 figure was listed at €10.299 billion, or about US$15.6 billion. The situation analysis consists of the market trend analysis and competitor analysis.
2.1 Market Trend Analysis
Adidas earn from EU 877 million in worldwide sales to EU 9.2 billion in the ten years between 1988 and 1998. The market demand from teenagers who should be Adidas and most important target market increased very fast and Adidas started to expand its targeting market to younger consumers because of its severe competition with Nike and Reebok. Therefore, since the late 1980s, Adidas has worked to transform itself from a brand of sneakers to a product integral to the sports culture. During this stage, the Adidas brand has become sostrong as to place it in the rarified air of recession-proof consumer branded giants, in the company of Coca-Cola, Gillette and Proctor & Gamble. Consumers are willing to pay more for brands that they judge to be superior in quality, style and reliability. A strong brand allows its owner to expand market share, command higher prices and generate more revenue than its competitors. With its “Impossible is Nothing” campaign and strong product,

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