Swot Analysis For Adidas Case Study

 

Addidas- You are consultant of the company. PEST/SWOT etc

IntroductionAdidas is a company that manufactures shoes and sport apparel. The founder is Adolf Dassler who is German. The name created by combination of the name and surnameAdi Dassler, who started producing shoes in 1920s with the help of his brother Rudolf Dassler. That make costumer, to recognize Adidas is three parallel stripes of the samecolor.Slogan: ?IMPOSSIBLE IS NOTHING?1. History 1949-2005Due to the death of Adolf?s son (Horst Dassler), the Company was bought in 1990 byBernard Tapie. Back then Tapie was specialist of rescuing bankrupt companies. Nextstep was to change the place of production to Asia and make a promotion campaign by using a famous person as Madonna (famous singer). In 1992 economical problemslead Tapi to sell Adidas to Lyonnais bank. Lyonnais sold Adidas to Robert Louis-Dreyfus who was also the president of the Olympique de Marseille football team. In1997, Adidas AG acquired the Salomon Group, and its corporate name was changedto Adidas-Salomon AG. Seven years later, top English fashion designer StellaMcCartney launched a joint-venture line with Adidas. This line was a sports performance collection for women called "Adidas by Stella McCartney". After 2years, Adidas introduced the Adidas 1, the first ever production shoe to utilize amicroprocessor. In August 2005, Adidas bought rival Reebok. At the same time saleshad been closer to those of Nike in North America. The acquisition of Reebok wouldalso allow Adidas to compete with Nike worldwide as the number two athleticshoemaker in the world. Three months later Adidas released a new version of theAdidas 1, make it better, stronger and faster. On April 11 2006, Adidas announced an11-year deal to become the official NBA apparel provider.2. ProductsAdidas manufactures anything related to sport, like shoes, clothes, watches, balls,Sunglasses, Protective Equipment, etc.You can purchase Adidas almost anywhere. Except original stores that placed inevery city in every country; you can find them also in super market as perfumeshower gel etc, or in jewel store as watches. The pricing for per of shoe fluctuate 60 to250 Euros, High price for most people; justifiably for High quality materials thatcompany use.? PLANINGMission Statement?Our mission is to become the best sports brand in the world. To that end, we willnever equate quantity with quality. Our founder Adi Dassler was passionate aboutsports. For Adi, the athlete came first. He gave those on the field, the court and thetrack the unexpected and the little differences that made them more comfortable andimproved performance. This is our legacy. This is what the brand stands for. This willnever change.?VisionPassion for sport. This is adidas. We consistently bring our passion to every singlesport, wherever and whenever it is played. Whether it's football in the park or the 100meters at the Olympics - we have been there, we are there now, and we will always bethere. Our dream is to bring our passion for sport, the athlete and the product, toanyone who comes into contact with adidas.Objectives

SWOT Analysis of Adidas operating in Apparel industry; Strengths,Weaknesses,Opportunities and Threats of Adidas.

Strengths

1. It has high brand value among the consumer.

2. It has been sponsoring major sports events including Olympics and sports team.

3. Adidas products are available worldwide.

4. Producer of wide variety of products; sports footwear, Adidas,bags, shirts, watches, eyewear, and other sports and clothing related good.

5. Strong workforce

6. Customer retention ratio is high

7. Impactful marketing strategies attracting consumers to buy Adidas products.

Weaknesses

1- The prices of products are high

2-  It has been serving limited segment

3- Cost structure of company is high

Opportunities

1- Market penetration in current markets

[large]2- Develop new products to attract new consumers segment.

3- Contribute to corporate social responsibility

4- Strong its market position in Pakistan, India and Bangladesh

5- Expand customer base

6- Merger and acquisitions

Threats

1- It has been facing strong competition from Nike and PUMA.

2- Demand of the products could decreased due to economy slow down in European countries.

3- Social and environmental concerns due to Human right violations and employment practices.

4- Macroeconomic risks due to change in consumer spending and confidence.

5- Technological and design changes.

6- Unrest political conditions.

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