Executive Summary

• In March 2015, Adidas introduced a strategic business plan named “Creating the New,” which defines the company’s strategies and objectives through 2020. Following exceptional financial results in its fiscal 2016 year, the company updated its corporate strategy and introduced an acceleration plan that outlines more ambitious growth targets than those initially set in 2015.
• Adidas is a major player in an industry that is highly attractive due to its robust growth trends, which have been driven by the rise of athleisure, increasing global concerns regarding health and fitness and higher sports participation rates. The global sporting goods industry is forecast to grow at a mid-single-digit rate in 2017.
• The company will propel sales growth by driving brand desirability through product innovation, brand exits and turnarounds, as well as by focusing on strategic growth areas such as e-commerce, greater penetration of the North American market and womenswear. Adidas plans to improve gross margins by minimizing clearance activities, increasing the share of full-price sales and speeding up its sourcing.