Adidas: Swot Analysis

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SWOT Analysis

Strengths

1. Established brand name – this means that Adidas has already built up a good reputation and it has a large market share within its industry. 2. Good retail links – Adidas has established good links with shops and outlets, which sell Adidas’s products. 3. Established worldwide distribution network – this means that Adidas’s products are shipped to a large number of countries. 4. Famous sports stars advertising products – Adidas has a series of football superstars who wear/advertise their products, including David Beckham, Zinedine Zidane, Stephen Gerrard etc. 5. High level of sales – Meaning Adidas sell a large amount of products. 6. Good reputation for quality – Adidas have built up a good reputation over the years for the quality of their goods.

Weaknesses

1. A large amount of finance is required for research and development of new products, therefore their prices are high – this means that Adidas require a large amount of funds so that they can carry on producing top of the range products. 2. Reliant on the sport industry – This means that if there was no longer a market in the sport industry, Adidas wouldn’t be able to survive as they only produce goods within this industry.

Opportunities

1. New products – One option, which Adidas could take, is producing new products. 2. Make deals with sports stars – Adidas could try to persuade more sports stars to wear their products by offering them deals. 3. Expand distribution network – Adidas could also export their products to new countries where their goods weren’t previously sold. 4. New unrelated products – Another option for Adidas is to make new products outside of the sports industry.

Threats

1. Competition – Adidas’s competition includes Nike, Reebok, Puma, Umbro, Diadora and Lotto etc. These organisations could ultimately take Adidas’s market share, forcing Adidas out of the market, making them bankrupt. 2. Inflation of materials would cause prices to rise, therefore less customers would buy Adidas’s products – this means that if the prices of materials used were to rise then this would cause the prices of Adidas’s goods to rise, as the products would be more expensive to make. This would mean that not as many people would buy their goods at higher prices.

http://www.telegraph.co.uk/finance/london-olympics-business/8545104/London-2012-Olympics-Adidas-aims-to-beat-Nike-into-second-place-at-Games.html London 2012 Olympics: Adidas aims to beat Nike into second place at Games It is not only the athletes that will be competing for first place at next summer's Olympic Games. Adidas, the German sportswear brand, plans to use the games as a springboard to overtake its arch rival Nike as the biggest sportswear company in the UK. [pic]

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Triathlete Holly Avil wearing Adidas Team GB outfit designed by Stella McCartney Photo: PA

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By James Hall
10:09PM BST 29 May 2011

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Nike is currently market leader in the UK with an 18pc share of the ultra-competitive £4.3bn sportswear market. Adidas is in second place with a 15pc share, but hopes that its status as official sportswear partner of the Games will help it achieve its goal of overtaking Nike by 2015 at the latest. As well as kitting out the athletes in 25 of the 26 Olympic sports – equestrianism requires very specialised equipment – Adidas will dress the 70,000 Olympic volunteers, provide the outfits for the pre-games torch relay and create clothing for the athletes to wear in the Olympic Village. Adidas is also the Games' official clothing licensee, and will sell Olympic-themed and branded clothes through its own stores and third-party retailers, such as Tesco and Asda. On top of this, it has appointed Stella McCartney, the designer and daughter of Sir Paul, as the creative director of Team GB. She will provide the team with garments such as their signature...
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