SWOT Analysis Of Adidas Brand

IDAS GROUP

‘Creating the New’ is the headline for our next five-year strategic business plan. ‘Creating the New’ is the attitude that leads us into the future – an exciting future, because our industry is growing in size and scope and will continue to do so. In fact, the sporting goods industry is growing faster than most other industries, including consumer electronics. This trend will continue. Sport is central to every culture and society and is core to an individual’s health and happiness. All of this is very good news to us because our core competency is sport. Through sport, we have the power to change lives. We work every day to inspire and enable people to harness the power of sport in their lives. We also translate our competence

The brand was started in 1949 and has travelled a long way since then.

Strong financial position: With its 2400 store globally accounting $4.3billions, the company is in strong financial position.

Distribution network: By selling it from online stores to company owned stores to supermarket stores, Adidas has an effective distribution system for their products available through different channels.

Branding by creating touch points with the community: Celebrity endorsements & sponsoring major sports organizations such as FIFA, UEFA, NBA & Olympics has increased the awareness of Adidas in the market & hence it has increased the highly targeted customer base as well.

Weakness

Weakness in the SWOT analysis of Adidas

1. Premium price range: High price range due to innovative technology & Production methods have made the brand affordable to limited customers only, especially in developing

Expansion in product line: Expanding its product line will open a new set of opportunities while at the same time it can differentiate itself from the competitors by following this strategy.

4. Increasing demand of premium products: If we only consider the Indian market then there is a growth rate of 33% in demand of premium products. This tells us the future business opportunity & expanding market size of developing economies.

5. Backward integration: This will be smart strategy if followed by Adidas as it will help Adidas to secure their patent rights & also integrate their R&D with the operational team in order to work in open system.

Threats in the SWOT analysis of Adidas

1. Competition: Although Adidas is a global brand but it is facing fierce competition from other brands like Nike which is No.1 brand and Adidas being in 2nd Position in this premium segment. Besides this, there is regular competition from local players, substitutes and market penetrators.

2. Supplier Dominancy: Due to majority of its production being outsourced; Suppliers have more bargaining power then the company.

3. Government Regulations: With its 35% products manufactured in China & 93% of production happening in Asia, Import regulations, duty& tariffs plays a critical role in the pricing and success of the company.

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