Market Environment Analysis of Adidas in Dubai

Running head: BUSINESS PLANNING
BUSINESS PLANNING
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BUSINESS PLANNING
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.2. Targeted customer segment.............................................................................................2
2.3. Competitive External business environment...................................................................3
2.3.1. PEST analysis...........................................................................................................3
2.3.2. Porter’s Five Forces.................................................................................................4
2.4. Internal business environment.........................................................................................5
2.4.1. SWOT analysis.........................................................................................................5
2.5. Porter’s Generic Strategies..............................................................................................6
2.6. Competitive advantages for the business idea................................................................7
2.7. Critical analysis of SWOT..............................................................................................7
3. Conclusion..............................................................................................................................8
References:.................................................................................................................................9

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BUSINESS PLANNING
1. Introduction
For any business to operate successfully in the business environment, having an in-
depth understanding of the internal and external market is very necessary. This report is
going to elaborate to discussing the market environment of Adidas of Dubai. Being second
largest company in the sport wear industry, Adidas is globally known for its extensive and
high quality products and services (Epstein, 2018). It is mainly engaged with the sport
industry and is offering the customers with huge range of sport equipment. Adidas has always
aimed at providing a better quality and comfortable products to its customers. This report is
going to shed light on the customer segment that it targets within UAE and its competitive
internal and external business environment. For assessing its external business environment,
Porter’s Five Forces and Ansoff Matrix too would be used. With the same, for an in-depth
analysis of its internal business environment, the report shall present a SWOT of Adidas
within Dubai region. Moreover, competitive advantages of the business idea of Adidas over
its competitors shall also be assessed briefly. Lastly, an in-depth critical analysis of SWOT
matrix shall be presented as well.
2. Discussion
2.2. Targeted customer segment
Adidas mainly targets the young customers in between the age range of 14 to 40 years
of age. However, it is also to mention that the brand equity of Adidas is not only confined to
its customer segment in Dubai. In fact, it is also quite popular among the other customer
segments like the ones who belong from the age range of 40 to 65.

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BUSINESS PLANNING
2.3. Competitive External business environment
2.3.1. PEST analysis
Political: Adidas enjoys its presence in the entire Saudi Arabian market and it post its
acquisition of the Reebok in the year 2006 that has created paths for it in different
international boundaries as well. Elections are held in UAE every five years and it does not
influence the business of Adidas as it is no way affected by any of the ruling parties (Ghanem
2018). However, Adidas need to adhere to minimum wages and hygienic working conditions
in the factories along with stipulated working hours every week.
Economic: The economic condition of UAE has significant impact on the sales and
operations of Adidas. The buying power of the customers, the rate of inflation and the
consolidation greatly influence the revenues. With the same, the stability of currency in UAE,
the import and the export duties as well as the special economic subsides are critical factors
that influence Adidas’ business operations.
Social: Race, culture, religion and the various social groups influence the way people live in
a society and therefore, the marketers need to pick up all the cues in sensible manner for
operating business in that environment. It is to mention that Adidas has very wisely used this
knowledge. Adidas gets gelled up with the modern youths and because of this spirit of
Adidas, it gets associated with the customers perfectly. Moreover, as technology has rapidly
advanced in today’s era and so is has the use of internet, the buying behaviour of the
customers are rapidly changing (Caro and Martinez-de-Albeniz 2015). Therefore, Adidas has
started selling its products through different online stores and make promotions providing
high discounts.