Adidas Swot Analysis Essay

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1. SWOT Analysis:
SWOT analysis is an acronym standing for strengths, weaknesses, opportunities and threats of the business. A SWOT analysis is very useful to determine the strategic issues facing companies to sustain their position globally.
The assessment of Adidas’s internal and external environment, profit and loss conditions requires a SWOT analysis.
Adidas always intends to develop new opportunities which make it highly prone to risks.

• Renowned brands.
• Extensive Marketing Infrastructure.
• Diversity and Variety. WEAKNESSES
• Underperformance of Reebok.
• Channel Conflicts.

• Growing Demand in Sport Equipment.
• Emerging Markets.
• Developing Technology. THREATS
• Increased Raw Material Costs.
• Competition.
• Economic Recession.
• Counterfeit Products.

1.1. Strengths:
The key strengths of Adidas Group are:
1.1.1. Renowned Brands:
It is one of the major strengths of the company. Adidas group owns brands like Adidas, Reebok, TaylorMade (Adidas Group Website). The strong trademark image of Adidas has increased its
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Adidas wanted to confront Nike on its own home land. The takeover was supposed to be a friendly takeover and the stock prices of both the companies started to improve from the very day of the announcement (MSNBC report). But during the last months of 2005, sales of Reebok dropped from $1 billion to $912 million. The poor performance of Reebok continued from the very time. In March 2007, Adidas also admitted that the merger was not as successful as it was supposed to be and the causes for the failure of the takeover were fully attributed to Reebok. Adidas blamed Reebok to be the basic reason as the group had 3.6% drop in the overall gross margins by the end of 2007

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