Market Structure Analysis of Adidas: Monopolistic Competition

Adidas

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
Description of company ..................................................................................................................3
Analysation of market ................................................................................................................4
Different market structure...........................................................................................................7
Did the company operates in different market structure.............................................................9
CONCLUSION .............................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:..................................................................................................................11

INTRODUCTION
The report aims to analyse the market structure in which the company is operating.
Market structure varies from company to company and the size, number of employees of the
organisation. It impact on the organisation functioning in which market it operates and how it
will be beneficial for the company. These market shares will shows the level of competition
among varied firms. This classification helps the organisation to understand the nature of goods,
buyers, competition and price differentiation in the industry. It helps the business to analyse the
principles and key concern behind these different market of business. Therefore, the report will
showcase the history and current market functioning of Adidas. The company was founded in
1924 and established its headquarters in Germany. The company is a global manufactures of
shoes, accessories, clothing in sportswear. It has established largest position in Europe and has
develop a reputed brand name in all over the world. The report is going to analyse the market
structure of company whether it is operating in monopoly, oligopoly or others. Also, it will be
defined through their characteristics which helps in analysing market transformation. Along with
this, the report will present the nature of industry and significance of government intervention
MAIN BODY
TASK
Description of company
Adidas AG is a German multinational company that is designing and manufacturing clothing,
shoes as well as accessories. It is one of largest brand of sportswear in Europe and providing its
products and service worldwide. It was introduced in the year 1949 by Adolf Dassler in the
Germany (Altin ,Uysal and Schwartz, 2018). It is offering different types of products and
service to their customers like footwear, Apparel, toiletries, sports equipment, sportswear. It is
one of large organisation as it has around 57016 employees who are working towards attainment
of goals and objectives of company. It is an organisation which has its own history as in 1900s
Adolf started working with their mother's laundry room and scullery. After that in the year 1924,
Adi Dassler registered Gebruder Dassler Schuhfabrik and aiming at their mission for providing
best equipment to athlete. The company get reward in form of Gold medals in Amsterdam as
well as Berlin. After that they get growth and expand their operation.

Adidas is offering different range of products and service in market as it is offering apparel,
sportswear, accessories and other sports equipment. Adidas is setting different range of clothing
item from men to women including hoodies, leggings, jackets, t-shirts and other things. It is also
offering sportswear like association football in which main focus on company is on football kits,
association equipment (Anderson, Asche and Garlock, 2019) Adidas is one of major company at
global level in term of supply of team kits for football teams as well as clubs. It is also offering
baseball equipment and also sponsoring different players. It is also offering clothing to
basketball, cricket and golf, gymnastics and other sportswear. It is also offering different types of
shoes like running shoes, skateboarding shoes, tennis shoes and other things. It is also providing
different types of accessories to their customers like baseball caps, socks, mobile accessories,
style sandals, eye wear and other things.
Analysation of market
Market can be described as place where different sellers and buyers can meet in order to
ensure exchange and transaction of goods and service. In this, both buyers and sellers are taking
participation in this transaction with an intent of generation of higher profitability in market.
Different types of market structure are taking place in business in order to fulfilment of needs
and requirement of customers and also for developing a brand image of company in market.
Adidas is operating in market which they have selected on basis of market research of their
products that are fulfilling demand of their target customers.
This organisation has founded that around more than 50% of people of population are
between 18 to 30 years and taking active participation in athletic whereas rest population are
engaged in different sports like cricket, baseball, rugby, football and other sports (Bedrii, 2020).
Other group of population which is around 20% is of age group 30 to 40 years who are
interested in physical activities like morning walk, footing and other things whereas rest 10%
people of age group 41 to 50 years who require walking shoes for walking in order to be fit.
It is an organisation which is taking individual with certain goods that allow them to
develop good brand image and also allow them to contribute for purpose of welfare and good
for people of society. It also allow them to develop a brand image for purpose of developing
higher profitability and growth in market.
Types of market structure: