ADIDAS 1. S. W. O. T. Analysis Strengths • In many invents is the biggest sponsor • Strong management team • Brand recognition and reputation • Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc. ) • Strong control over its own distribution channel • No bad reputation like child labor or environment pollution • In the Soccer industry, Adidas has a stronghold Weaknesses • High prices in some products • E-commerce is limited to USA • The direct sale to consumers is creating conflicts with its own resellers Online customer service not “helpful” or easy to find Opportunities • Increase female participation in athletics “Adidas by Stella McCartney” • Collaborate with other online retailers to offer Adidas products • Possibility of outsourcing the web development and e-commerce to a third party developer Threats • Nike’s strong reputation in the footwear and apparel industry • Negative image created by the sponsored athletes (i. e. Kobe Bryant and his sexual assault case) • Increase in the Price of Raw materials • Continuing challenges in import/export duties 2.
S. W. O. T ANALYSIS STRENGTH . Worldwide presence in 200 countries . Long list of product line -football -running -basketball, etc . Focus on performance development and technological development . Sponsorship to various sports and events like Olympic, street ball, soccer, tennis, etc. . Brand reputation in achieving sports performance products . Largest market share in Europe WEAKNESS . Limited exposure to U. S market . Limited budget allocation to advertisement . Few influential athletes in brand ambassador portfolio . Poor add agency . Poor customer service
OPPORTUNITIES . Has a great opportunity to expand international market like retail outlet and e-commerce. . Positive and increasing market trends increase through the effective advertising . Increase endorsement programmes . Tie up with local market player to boost the sale-volume THREATS . Adidas larger competitor Nike has a greater market share and having a big budget in marketing activity . The newly born several brands like New Balance, Reebok, CAT, GAP has increase their advertising budget in recent years. . Amount of competitors increasing day by day
