Adidas Porter Five Forces Analysis Essay

Title
Adidas

1. Introduction
Adidas is a multinational company that designs and produces their very own sportswear, clothing and other apparels. It was originated in Germany and was established in 1949. Together with the rising demand of sportswear, Adidas has been keeping up with other competitors and is currently known to be the largest sportswear manufacturer in Europe and the second largest worldwide after Nike. As of 2014, Adidas has 1746 concept stores, 851 factory outlets and 316 concession corners and other outlets worldwide. (Statista, 2015) When Adidas initially first begun, there was very little support from alternative organizations, particularly those who were interested in sports equipment. Fortunately, the demand of sport equipment items increased as days advanced. This then served as an advantage to Adidas as a company to step up their marketing strategies and production of their items that contributed to the success of the company today. Up to this day, Adidas continues to expand their company and one way they have done so is by buying over one of its primary opponents, Reebok for $3.8 Billion. (Seanatherton, 2013) This was a major stride in overtaking their other company

2.2.1 Threat of New Entrants
The first factor is the threat of new entrants. This refers to start-up companies joining the industry and eventually decreasing other companies’ profitability. As for Adidas’ case, the threats of new entrants are low. This is because Adidas currently has large sales income, capital requirement and they are a very well-known and recognized brand worldwide. This decreases the chances of start-up companies to take over Adidas in the industry as they would have a lot of catching up to do to be on par or to overtake Adidas.

2.2.2 Bargaining Power of