A name that stands for competence in all sectors of sport around the globe. The vision of company founder Adolf (“Adi”) Dassler has long become reality and his corporate philosophy the guiding principle for successor generations.

Adidas AG is a German sports apparel manufacturer and part of the Adidas Group, which consists of Reebok sportswear company, TaylorMade-adidas golf company, and Rockport. 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[3]

The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo.



To extend their service to the customers and to having competitive advantage, Adidas decided to make a websites. Nowadays, Adidas have more than one websites serve many of their customers around the world. There are:

• http://www.adidas.com/
• http://www.adidas-group.com/en/home/welcome.asp
• http://www.adidasshoess.com/adidas/
• http://www.harputsadidas.com/
• http://www.subpublic.com/adidas

Six key e-business strategic decision

Decision 1: E-Business Channel Priorities

E-business strategy should be directed by the right strategy objectives that planned by the company, Adidas also feel that there is a need to serve their customer not only in face to face or by phone, but also in an online presence.
Nowadays, Adidas strategic options of e-business channel is still “bricks and clicks”, they have store to handle customers offline and the website to handle customers online. Online website not also use to maximizing their customer services, but they provides it with product information in detail and good presentation.

Adidas take a good chance in maintaining their website to be an e-business stage. They make full integration between all internal organizational processes and element of the value network, in sell-side type, Adidas create a fully interactive site supporting the whole buying process. And in buy-side type, they place orders electronically with full integration of e-procurement, manufacturing requirements planning and stock control systems.

To develop their website, Adidas may use “Right-channeling” model to prioritize their step as approach to build a system which appropriate with current condition, they may considered this applications of “Right-channeling”:

1. Sell to and serve SMEs through online channels
   Adidas using Internet for sales and service through an extranet to lower sales volume for whom that cannot be serve offline.
2. Encourage customers to buy through online channels
   They encourage customers to buy online by reduce the price through sales discount. Adidas also give full information of spec of their products. Besides, the product that produced in other countries can be ordered via this online channel.
3. Selective service levels for different customer types
   Adidas differentiates their customer by directing them to their specific area. For example, they can enter the site that located in Singapore or in Brazil (different in language and or interface).
4. Migrate customer to web self-service
   Customers are encouraged to use the web to manage their account. Customers are also given to see their cart and their orders status.

Adidas prefer to make their website full of flash to give a new experience to their customers so then they feel more easy to use and navigate the website. Adidas offering some easiness to explore their products using flash media, for example:



Decision 2: Organizational Restructuring and Capabilities

Company should restructure or change its capabilities in order to achieve the priorities set for e-business. Adidas is continuously refining our distribution proposition, concentrating on two areas: expanding controlled space and improving retail relationships. Controlled space includes: Adidas own-retail business including e-commerce; mono-branded stores run by retail partners; shop-in-shops that we establish with our key accounts; joint ventures with retail partners; co-branded stores with sports organizations or other brands.

Adidas also do some activities to restructuring their organization. Several examples in which Adidas choose are:

1. In-house division
   Adidas separated their division to become more specific in handling their customer. Also they have divided the menu in their website, so customer can search easily through the website.
   For example, they have more than one website that specific handling their products (adidasshoes, adidas). And this is their navigation of the menu:
   


2. Strategic partnership
   In 2006, Adidas acquire Reebok to extend their products and customers. Adidas also build cooperative activities with football club like Chelsea, Liverpool, and a famous designer Stella McCartney and others.
   


3. Joint Venture
   Adidas also did joint venture with their retail partners in each country.


4. Spin-off
   Adidas separate of their line of business to specify their customer, such as TaylorMade brand name to handle their Adidas-golf.
   

Decision 3: Business, Service, and Revenue Model

BUSINESS MODEL:
Adidas have two type of business model, there are B2C. Their own e-commerce can handle e-procurement, e-payment, company profile, and products information.

SERVICE MODEL:
Adidas provides their website with full of interactive media (Flash Media), and customer can ask anything to them via email or if they want to be notified, they can ask for newsletter from Adidas.

Adidas also provides Adidas.TV to serve their customer related with their products performance or their commercial in television.

REVENUE MODEL:
Direct Product Sales of Product and Service to the customers (e-commerce).


Decision 4: Marketplace Restructuring

Adidas have both sell-side and buy-side marketplace.

Sell-side

• Disintermediation. Adidas has their self e-commerce that support whole buying procedures
• Partner with new online or existing intermediary or retailer strategy. Adidas improve their relationship with other retail or e-retailer to sell their products.

Buy-side

• Disintermediation. Adidas usually buy by themselves without intermediary.

Decision 5: Market and Product Development

Adidas had developed strategies in their market and product. The strength of Adidas brands is a key factor in Group’s success. Within Adidas brand portfolio, they primarily pursue two strategic priorities: Market penetration – gaining market share across all markets in which we compete, and Market development – expanding into new markets and addressing new consumer segments.

Adidas multi-brand approach allows them to tackle opportunities from several perspectives, as both a mass and a niche player, providing distinct and relevant products to a broad spectrum of their consumers. In this way, each brand is able to concentrate on its core competencies. Across all brands, they focus on increasing awareness and visibility, providing clear and consistent messaging and supporting product initiatives at the point-of-sale.

Adidas continuously challenge the boundaries of functionality and performance. It is their objective to launch at least one major new technology or technological evolution per year. By continually expanding their capabilities in R&D and design, they are able to introduce new products at premium price points, thus contributing to Group margin improvement.


Decision 6: Positioning and Differentiation Strategies

Adidas Group will drive future success by engaging consumers with unique interactive product approaches and rewarding point-of-sale experiences. Adidas brands must be competitive in this environment where consumers make their final purchase decisions based on availability, convenience and breadth of product offering.

There are examples what Adidas had done:

• Product performance excellence
  Adidas website gives their potential customer possibility to zooms the product and also to see full information even its technology. Consumer also can choose color and size easily, the website also offer product preferences by consumer behavior.
• Price performance excellence
  Adidas have offer discount for specific product or promotional in their website.
• Transactional excellence
  Process of buying is quite easy and easy to understand by customer. Adidas also provide their website with product tracking and account managing, so that customer cans easily tracking their order and or review their cart.
• Relationship excellence
  In managing their relationship with consumer, Adidas give them services to subscribe their newsletter. Customer can contact Adidas through easy steps and if they aren’t satisfied with Adidas product, they can refund it and Adidas explain the procedure in their website.
  To manage their relation with small retailer, Adidas offer “Affiliate Program” by giving them procedure to get commission in sales.