Adidas Business Strategy: A SWOT Analysis for 2024

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SWOT ANALYSIS
ADIDAS

Contents
INTRODUCTION........................................................................................................................2
SWOT ANALYSIS OF ADIDAS.....................................................................................................3
REFERENCES............................................................................................................................. 6
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INTRODUCTION
Adidas is the company well-known for its products related to sports in the market. Various
marketing strategies are also used by the company to maintain its position in the market.
The assignment includes a SWOT analysis of the company through which various strength,
weaknesses, opportunities and threats present in the environment for the company can be
analyzed and through which corrective actions can be taken accordingly.
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SWOT ANALYSIS OF ADIDAS
Adidas is a German company well-known for its sports shoes, sports equipment and in
apparel that are used by the athlete (Lewis, 2019). The company produces approximately
900 million products related to sports every year and has its manufacturing partners all over
the world. Here is the SWOT analysis which had been identified by the company.
STRENGTHS
 Legacy and heritage: Since the company has been started in 1949, it has captured a
vast market share and also had proved themselves in comparison to other
competitors present in the environment (FFU, 2019).
 Distribution network: Adidas has been able to reach a wide market only because of
its distribution network present all over the world. The company's products are also
available online, in stores as well as in supermarkets.
 Strong financial position: With coming up of 2400 stores all over the world the
company has made a strong financial stay in the market among its competitors.
About $ 4.3 billion revenue is generated globally every year by the company (FFU,
2019). This figure shows that it has good economic condition in the market.
 Global presence: Another main strength of the brand is its presence and strong
reputation all over the world. The operations of the company are at various places
such as Western Europe, Asia Pacific as well as in North Latin America. Also, the
company is one of the well-known largest apparel brand present in the market
(Halwatura, 2017).
 Acquisitions: The Company has also already gained 7 different organizations which
include Reebok International, Adam golf, Salomon AG, Mitchell & Ness etc. The
company recently merged Tantastic in 2015. By acquiring various organizations,
Adidas aims to become the leading sports brand all over the world leaving Nike
behind (Halwatura, 2017).
 Strong and innovative marketing: The Company always aims to come up with such
a creative product in the market so that it attracts customers all around the globe.
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Various marketing mediums are also used by the company such as online ads, TVC’s,
print media and online publicity (Adidas, 2019).
WEAKNESSES
 Limited product line: With the gaining of Reebok brand, the company has only two
main brands under their group though they have a variety of products under them.
Thus this is one of the weaknesses the company faces in comparison to other
brands available in the market (FFU, 2019).
Figure 1 CORE BRANDS OF ADIDAS
Source- Adidas, 2019
 Availability of premium products: The Company sells those products which are
produced using innovative technologies and manufacturing methods and therefore
can be purchased only by high-class society. Also, the product is available mainly in
developing countries where customers have the potential to spend on such
products (FFU, 2019).
 Few endorsements: Adidas did not focus much on celebrity endorsement for its
variety of products and clothing. This is one of the weakness due to which Adidas is
not able to make its strong position in the market as compared to Nike. Since
endorsement increases the value of the brand in the market and also helps in
increasing sales, the company should have come up with this idea (Adidas, 2019).
OPPORTUNITIES
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 Growing industry: Since the company has acquired a strong market share it has the
opportunity to come up in a new market related to health and fitness. This would
also relate to the constant increase in the number of people who are interested in
sports (Adidas, 2019).
 Usage of smart materials: By constantly putting money in various financial schemes,
development and manufacturing new material, the company can supply premium
quality products to its competitors (Thomas, 2019). For example, Adidas can come
up in the market by developing new types of fabrics that could make the shoes
more comfortable and cool in summers for its customers.
 Sponsorship: The Company has a good opportunity to maintain its position in the
market if it sponsors various sports-related events and academies. Also by tying up
with various sports team coming up in the market the company can excel and grow
further (Adidas, 2019).
THREATS
 Government regulations: Since the product is manufactured at various places such
as China and other places in Asia, various government regulations, duties and tariffs
are being imposed on the products which may act as a threat for the company
(Adidas, 2019).
 Competition: Although Adidas is one of the leading brands in the premium sports
segment, still constant competition revolves around the company. Many local
players and substitutes have emerged in the market that may affect the growth of
the company (FFU, 2019).
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REFERENCES
1. Adidas, 2019. NITE Jogger (Online) Available at https://www.adidas.co.in (Accessed
on 12th July 2019).
2. Adidas, 2019. Profile (Online) Available at
https://www.adidas-group.com/en/group/profile/(Accessed on 7th July 2019).
3. Annual report, 2018. Financial highlights (Online) Available at https://report.adidas-
group.com/fileadmin/user_upload/adidas_Annual_Report_GB-2018-EN.pdf
(Accessed on 10th July 2019).
4. FFU, 2019. Adidas SWOT analysis (Online) Available at
http://fernfortuniversity.com/term-papers/swot/1433/1155-adidas.php
5. Halwatura, 2017. SWOT analysis for Adidas (Online) Available at
https://hansanivihangahalwatura.wordpress.com/2017/03/09/swot-analysis-for-
adidas/ (Accessed on 15th July 2019).
6. Lewis, 2019. Adidas AG (Online) Available at
https://www.britannica.com/topic/Adidas-AG(Accessed on 14th July 2019).
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