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SWOT Analysis of Adidas

This document contains a SWOT analysis of Adidas. It identifies Adidas' strengths as its legacy brand status since 1949, diversified product portfolio under Adidas and Reebok brands, strong financial position with $4.4 billion in revenue and 2400 stores globally, and effective distribution network. Weaknesses include its premium pricing being affordable only to limited customers, outsourced manufacturing making it reliant on suppliers, and limited product portfolio with only two brands. Opportunities lie in changing consumer lifestyles and preferences, entering new markets, expanding product lines, and growing demand for premium products. Threats include competition from Nike, supplier dominance, and government regulations affecting its supply chain.

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Mohammad Ammar khan
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406 views2 pages

SWOT Analysis of Adidas

This document contains a SWOT analysis of Adidas. It identifies Adidas' strengths as its legacy brand status since 1949, diversified product portfolio under Adidas and Reebok brands, strong financial position with $4.4 billion in revenue and 2400 stores globally, and effective distribution network. Weaknesses include its premium pricing being affordable only to limited customers, outsourced manufacturing making it reliant on suppliers, and limited product portfolio with only two brands. Opportunities lie in changing consumer lifestyles and preferences, entering new markets, expanding product lines, and growing demand for premium products. Threats include competition from Nike, supplier dominance, and government regulations affecting its supply chain.

Uploaded by

Mohammad Ammar khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: M.

Ammar khan

Reg No: SP18-BSE-157- D

Assignment: 2

SWOT Analysis of Adidas


Here’s detailed breakdown of Adidas SWOT Analysis.

Adidas’ Strengths- Internal Strategic Factors


 Adidas Legacy- Adidas with decades of legacy, Adidas has travelled a long way to establish itself
as a youthful brand. The brand was started in 1949 and now has come a long way since then.
 Diversified portfolio- Company has multiple product portfolio’s of with varied range of footwear
and accessories under brand name Adidas & Rebook.
 Strong Financial position- With its 2400 store globally and estimated $4.4 billion, 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 with community- Celebrity endorsements & sponsoring major sports organization like
FIFA,UEFA,NBA & Olympics has increased the awareness of Adidas in the Market & hence it has
improved their selling. They are the official partner of Messi in football which has improved
their name in the sports.
 Collaboration and Memberships- Strong relationship with some areas of organizations such as
international labour organization, international finance corporation has given the company edge
over their competitors so that they can have a sustainable business.

Adidas’ Weakness- Internal Strategic Factors


 Premium Price Range- High price rate due to good quality, innovative technology & production
methods have made the brand affordable to limited customers, especially in developing
countries like Pakistan, Bangladesh etc.
 Outsourced Manufacturing- Adidas has 93% of production outsourced to third party
manufacturers(largely to Asia) to avail low labour cost & easy availability to resources.
 Limited Products- Adidas along with the recently acquired Reebook brands, has got only 2
brands under them. Although, they have deep assortments within these brands. Thus, there is
more scope for product line expansion.
Adidas’ Opportunities- Internal Strategic Factors
 Changing Lifestyle- With the developed economies, changing taste and preferences, education
& changing lifestyle of developing economies, there is a rise in demand of premium products &
services.
 Market Development- Entering into new markets will be the only way to succeed in the future
because developed economies are already having a high competition.
 Expansion in Products- Expansion in their products will open new opportunities while it can
differentiate itself from the competitors by following the path.
 Increasing demand of Premium Products- If we consider only the indian market then there is a
rise growth rate of 33% in demand of premium products. This tells us the future business
opportunities and expanding market size of developing economies.
 Backward Integration- This will be the smart strategy if followed by Adidas as it will help Adidas
to secure their patent rights and also integrate their R&D with the operational team in order to
work in an open system.

Adidas’ Threats- Internal Strategic Factors


 Competition- Adidas is a global brand but it is facing its fierce competitions from other brands
like Nike which is a No.1 Brand and Adidas being in 2 nd Position in this premium segment.
Besides this, there is a regular competition from local players, substitutes and market
penetrators.
 Supplier Dominance- Due to majority of its production being outsourced, Suppliers have more
bargaining power then the company.
 Government Regulations- With its 35% products manufactured in China and 93% in Asia, import
regulations, duty & tariffs play a critical role in the pricing and success of the company.

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