Reebok 2009 Annual Report Download - page 57

Investments focused on highest
potential markets and channels
As a Group, we target leading market
positions in all markets where we com-
pete. However, with almost 180 sub-
sidiaries worldwide, we have prioritised
our investments based on those markets
which offer the best medium- to long-
term growth and profitability opportuni-
ties. In this respect, we continue to place
a considerable emphasis on expanding
our activities in the emerging markets,
particularly China and Russia see Sub-
sequent Events and Outlook, p. 156.
No matter in which market we
operate, we recognise that consumer
buying behaviour and the retail landscape
are unique. Therefore, to fully exploit
market opportunities, we tailor our distri-
bution strategy to present our brands to
the consumer in the most impactful way.
This is achieved by following a distinctive
channel approach. We strive to provide
our customers with superior service to
secure prime shelf space for our brands,
while continuing our commitment to
building a strategic competency in own
retail and e-commerce see Global Sales,
p. 54.
Creating a flexible supply chain
Speed and agility are key to outpacing
the competition. We are committed to
meeting the full range of customer and
consumer needs by ensuring product
availability in the correct size and col-
our, providing game-changing technical
innovations and also the latest high-end
fashion product to the highest quality
standards.
We strive to shorten creation and produc-
tion lead times by continuously improving
our infrastructure, processes and sys-
tems. By sharing information from point
of sale to source and vice versa, we strive
to connect and more closely integrate
the various elements of our supply chain,
to enable quick reaction to changing
consumer trends. To this end, we focus
on building maximum flexibility. While
leveraging the efficiency of common
infrastructure and processes, the Group
strives to provide tailored solutions for all
our business models, be it the wholesale
or retail channels, or the performance-
oriented or style-oriented businesses
see Global Operations, p. 88.
Leading through innovation
Everyone in the adidas Group is respon-
sible for driving innovation. Therefore, we
foster a culture of challenging convention
and embracing change, and require all
areas of the Group to generate at least
one new meaningful innovative improve-
ment per year. In particular, we believe
that technological evolution and cutting-
edge design in our products are essential
to achieving sustainable leadership in our
industry see Research and Development,
p. 92. Beyond this, enhancing services for
our customers see Global Sales, p. 54, and
implementing more efficient and effective
internal processes are other areas where
our organisation strives to innovate.
Develop a team grounded
in our heritage
Our culture is continuously shaped by
influences from the past, present and
future. We perpetuate our founder’s
commitment to the athlete/consumer,
pride in what we do, quality and love of
sport. We win as a team through open
communication, collaboration and our
shared values found in sport see
“Shared Values”.
Further, we are particularly focused
on ensuring best-practice social and
environmental standards. We encourage
socially and environmentally responsible
behaviour, because we know it will
generate superior long-term value for
our Group see Substainability, p. 102.
Creating shareholder value
Sustainable revenue and operating profit
growth are critical to our success. Creat-
ing value for our shareholders through
significant cash flow generation drives
our overall decision-making process.
For each of our segments, we pursue the
avenues for growth which we expect to
be most value-enhancing, with particular
emphasis on improving profitability. In
addition, rigorously managing working
capital and optimising our capital
structure remain key priorities for us. As
always, we are committed to increasing
returns to shareholders with above-
industry-average share price perform-
ance and dividends.
GROUP MANAGEMENT REPORT – OUR GROUP Group Strategy 53
SHARED VALUES
Performance
Passion
Integrity
Diversity
see Corporate Mission Statement, p. 48.