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Company Analysis Assignment- Adidas

   

Added on  2020-06-04

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Essay Adidas

TABLE OF CONTENTSTITLE – ESSAY ADIDAS..............................................................................................................1REFERENCES................................................................................................................................8

TITLE – ESSAY ADIDASAdidas is the German multinational corporation, majorly focused on designing clothing,shoes and accessories. The organization is the largest sportswear manufacturer in Europe andsecond largest in the entire world. The company was registered on 18 August 1949 after secondworld war. The total revenue generated by Adidas in 2016 was €19.29 billion (Turner, 2015).The aim of the company is to become the leader in the sporting good industry with their productsmajorly built up on passion people are having for sports and the life style. The vision of Adidasis to become the most successful and respectful organization and fulfilling the needs of theconsumers by their wide range of products and services which are based on the latest technologyand by using the skills of the best people. According to the heritage of sports, the strategies which are focused on limiteddistribution can play an important role in the success of the organization, because it will helpthem in launching a whole new product in context with the current life style of the sports marketstrategy (Heeg, 2015). To understand the marketing strategies in a better way, SWOT analysis ofAdidas has been done. It will be helpful in finding out the strengths and weaknesses of thecompany, so that the strategy could be developed according to that. There may be fewopportunities as well which can be used by Adidas to increase their sales rate. First, the discussion will be on the strengths of the company and the major strength is thatAdidas is well established brand of sports which is having quite stable and high financialcondition. The company is giving sponsorship to international games so that their brand imagecan be improved all around the world (Seitz, 2014). The focus of Adidas is on those gameswhich are played in most of the countries like football, tennis, running etc. They are alsomanufacturing the products for the particular players so that their brand image can be increased.Despite having all these, the company is having some weaknesses as well and one of them is lessconcentration on the countries having small economies. The sport goods which are transported toother countries are having high transport charges, so it is reducing the overall profit for them.The current cash flow of the company is not satisfactory. Though, the company is having the opportunity to tap in some other internationaleconomies, so that their business can be increased. Adidas must focus on big cities, so that theircustomer base can be increased. One more thing the management have to keep in mind that they1

should open their manufacturing plants in those countries where the economic condition is good,than they will be able to produce goods at cheaper rates. The major threat for the company iscoming from its competitors in sports industries. The local brands are also creating problems byproviding the sports good on lower rates, so consumers gets more attracted towards thoseproducts. Sometimes the rules and regulations of the countries are also affecting the performanceof the company. They are having their business globally, so they have adopted global marketing strategyby fulfilling all the domestic marketing strategies. But one concern is that domestic marketing isvery much limited, that is why the prime focus is on international market. Adidas is providingbulk of their products to other countries (Aubert and et.al., 2016). The organization is alsohaving their concentration on the international events like Fifa world cups and other tennistournaments, so that they can increase their customer's base by attracting more number of people.Even though, Adidas is one of the largest brand in terms of footwear, the company hasseen major ups and downs in their marketing strategy and the best way of analysing this isthrough the marketing mix of Adidas. This will include product, place, price and promotion. Thefirst focal point is the products of the company. They are having four subsidiaries which arefocusing on the four different segments of footwear. First is their own brand name- Adidas,which is focused on clothing and footwear. Second is Reebok, which is for causal shoes, third isRockpot, which looks after outdoor footwear and the final one is Taylor made, focused ongolfing shoes and clothes (McDowell, 2015). The aim of Adidas is to deliver quality products fortheir consumers which is the combination of both technology and design. The shoes bought by the consumers are to fulfil their wants and desires. The clothing istargeted mainly for sports comfort but youngsters are using it more as their style statement. Thepricing of Adidas is sometimes skimming and competitive because of their design, style andpromotions. The pricing of the company is done by keeping the competitors pricing in mind, sothat they will be able to attract more number of consumers. In the past couple of years they areusing skimming pricing for their new products so that their sales can be increased (Choi andet.al., 2015). The main target customers are upper middle class and high class, that is why theynever used penetrative pricing. Otherwise, it will have direct impact on the brand equity ofAdidas. Majority of the consumers believes that their products are of the best quality so they2

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