Analyzing Sports Business Environment: SWOT, PESTLE & Expansion Plan

This report provides a comprehensive analysis of the business environment for a sports company, specifically focusing on Adidas, using PESTLE and SWOT frameworks. The PESTLE analysis identifies external factors impacting the sports retail market, highlighting competition, legal complexities, and investment opportunities. The SWOT analysis explores Adidas' internal strengths (skilled workforce, financial base) and weaknesses (pricing strategy, management), alongside opportunities (technology, social media) and threats (competition, regulations). The report critically evaluates these factors to determine the feasibility of expansion plans, recommending market research and technology utilization. Ultimately, it concludes that by leveraging its strengths and addressing external challenges, the company can successfully implement its expansion strategy. This report is available on Desklib, a platform offering a range of study tools and solved assignments for students.

BUSINESS AND BUSINESS
ENVIRONMENT (SPORTS COMPANY)
Part 2

Table of content
• INTRODUCTION
• PART 2
• Pestle analysis to determine the impact of external factor on sports retail market
• SWOT analysis to explore the Adidas internal strength and weaknesses
• Critically evaluating both external & internal factors, to identify whether company should proceed with expansion plan.
• RECOMMENDATIONS
• CONCLUSION
• REFERENCES

INTRODUCTION
• Business case refers to set of actions and decisions, that are taken into consideration for a specific reason such as expansion
related to distribution channels.
• The current presentation will be based on Adidas, which falls under the category of leading sports companies in the UK.
• The report will justify the PESTLE analysis to identify the positive and negative impact of factor upon sports retail market.
• It will also define the SWOT analysis to determine the internal capability and weaknesses of chosen firm.
• Lastly, the presentation will specify both external and internal factor critical evaluation, to evaluate whether firm can proceed
with its expansion plan.
• It will also clarify the strategic and justified suggestions based on overall analysis and discussions.

Pestle analysis to determine the impact of external factor on sports
retail market
• It is quite essential for the management to get information about
the external environment of sector, where it tends to enter by
following the expansion plan related to distribution channels.
• The best way to conduct external business environment research
is application of PESTLE analysis as strategic framework, which
encompasses 6 different factors.

Traffic light chart
According to the red light, the level of competition in the retail sports market is
high, which means Adidas need to develop the best strategies as compare to the
competitors.
Green light defines the low extent of legal complexity in the market, which means
firm can enter into new geographic area, with some efforts and by following legal
compliances.
Yellow light indicate the funding activity and investment opportunity level is high
in the market, which means firm can conduct the same activity by using a specific
funding source, which might be reliable and trustworthy.

SWOT analysis to explore the Adidas internal strength and weaknesses
• Strengths- Skilled workforce and good financial base
• Weaknesses-Lack of appropriate pricing strategy and
management
• Opportunities-Technology advancement & social media
marketing
• Threats-Intense competition & regulatory changes

Critically evaluating both external & internal factors, to identify
whether company should proceed with expansion plan.
• It can be critically evaluated that social factor as external force can impact on Adidas in positive manner, in term of driving
management attention toward considering key market trends that help to gain the attention of new consumers.
• While, it also affects negatively, in case of emerging need of target market according to the trend that firm might be unable to
consider.
• Along with that, it can be critically examined that skilled workforce as internal factor, can impact venture in term of increasing
sales and effectiveness of business operations.
• With talented people, company can take approach to grow rapidly and implement expansion plan into practical manner.

RECOMMENDATIONS
• It is recommended to Adidas and its management, to develop a team of specialist who are able to conduct market research and
gather data related to favourable and unfavourable factors. Thus, this can help company to proceed further with expansion plan
effectively and appropriately.
• Along with that suggestion, management can take another recommendation into its consideration. They can utilize the
advanced technology, for purpose of achieving the strategic goals related to expansion of distribution channels plan. It can to
increase the performance and productivity as well as profitability of company, then its rivals in the market, which is important
and essential too.

CONCLUSION
• By summing up above discussion, it has been summarized that firm has generated awareness about the external and internal
factors, by applying and taking two strategic business models into consideration such as PESTLE and SWOT analysis.
• It has proceeded with the expansion plan, including e-commerce players and physical outlet ventures, in effective manner by
developing plan with key considerations of favourable factors.
• Furthermore, it has been determined that organization has overcome the adverse impact of some external factors, by
developing effective plans and strategies that it had implemented into practical manner.
• It has reached desire target market group, by using strengths that outcome in term of aim achievement, successfully.

REFERENCES
• Bradbury, T. and Galloway, C., 2021. SWOT analysis. In Encyclopedia of Sport Management (pp. 480-482). Edward Elgar
Publishing.
• Ennis, S., 2020. Formulating and Implementing Sports Marketing Strategy. In Sports Marketing (pp. 129-151). Palgrave
Macmillan, Cham.
• Медвідь, В.Ю. and Цянь, Ю.Ц., 2020. RESEARCH ON THE OVERSEAS M&AS OF CHINA'S SPORTS INDUSTRY
UNDER THE BACKGROUND OF THE BELT AND ROAD INITIATIVE: SWOT-ANALYSIS. ЕКОНОМІКА І
УПРАВЛІННЯ, pp.119-132.