Growing cost of raw materials and labor

RETAIL INDUSTRY 0
RETAIL INDUSTRY
ANALYSIS: ADIDAS
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4/3/2020

RETAIL INDUSTRY 1
Contents
Introduction to retail industry.....................................................................................................2
Introduction to the company......................................................................................................2
Key relevant changes within the UK fashion retail...................................................................3
Political factors: Many systems.............................................................................................3
Economic factors: Counterfeit issues.....................................................................................4
Social Factors: Health conscious shoppers............................................................................5
Technological factors: Smart sportswear opportunities.........................................................5
Legal factors: Patents and more patents.................................................................................5
Environmental factors............................................................................................................5
Relevant changes within the micro environment.......................................................................6
Bargaining power of the suppliers:........................................................................................6
Bargaining power of buyers:..................................................................................................6
Threat of substitutes:..............................................................................................................7
Threat of new entrants:...........................................................................................................7
Level of competitive rivalry in sports fashion industry:........................................................8
Suggest and discuss strategies and tactics that could be used....................................................8
Macro environment challenges..................................................................................................8
Competitive pressure :............................................................................................................8
Growing cost of raw materials and labor :.............................................................................9
Overdependence on external suppliers :................................................................................9

RETAIL INDUSTRY 2
Micro environment challenges..................................................................................................9
Regulatory pressures :............................................................................................................9
Market fluctuations:.............................................................................................................10
Recommendations....................................................................................................................11
Conclusion................................................................................................................................11

RETAIL INDUSTRY 3
Introduction to retail industry
The retail sector includes every business or individual engaged in direct selling of goods to
customers. The associated industries include the whales (providing retailers), the logistics
(connecting wholesalers and suppliers with retailers) and manufacturing (producing retail
products). Including malls, convenience stores, restaurants, stands, door-to-door salespeople
and Web outlets, this briefing paper focuses on the retail sector1 (Rezaei, Fahim, and
Tavasszy, 2014).
In 2018, 319,125 retail firms were operating in the UK retail market, accounting for 5.6% of
all companies.4 Small and medium-sized enterprises (SMEs), as any other corporations,
make up more than 99% of retail companies. However, among many industry areas the retail
market and the country as a whole had various amounts of businesses.
• 60% of supermarket firms have a workforce of 0 relative to 76% in the global country.
• 34% of retail firms have 1 to 10 employees, while 20% of the market as a whole
• 6% have between 10 and 100 workers of retail businesses, relative to 4% for all firms
Introduction to the company.
Adidas AG is the largest maker of sportswear in Europe and the second biggest in the world
at Nike. Adidas is a global corporation located in Herzogenaurach, Germany and is renowned
for its clothing, clothes and accessories production and sale. The Nike team comprises of
Reebok, TaylorMade and Runtastic. The corporation also controls the German football team
Bayern Munich. The Adidas logo is three bars used in the manufacturing of clothing and
apparel products as a symbol for advertisement. Three Adidas 'greatest competitors are Nike,
Puma and Under Armour (Balaji & Roy, 2017).