Adidas S.W.O.T Analysis

Topics: Adidas, Amer Sports, World Wide Web Pages: 5 (1377 words) Published: March 18, 2011

* In many invents is the biggest sponsor
* Strong management team
* Brand recognition and reputation
* Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.)
* Strong control over its own distribution channel
* No bad reputation like child labor or environment pollution * In the Soccer industry, Adidas has a stronghold

* High prices in some products
* E-commerce is limited to USA
* The direct sale to consumers is creating conflicts with its own resellers * Online customer service not "helpful" or easy to find

* Increase female participation in athletics ?Adidas by Stella McCartney? * Collaborate with other online retailers to offer Adidas products * Possibility of outsourcing the web development and e-commerce to a third party developer

* Nike's strong reputation in the footwear and apparel industry * Negative image created by the sponsored athletes (i.e. Kobe Bryant and his sexual assault case)
* Increase in the Price of Raw materials
* Continuing challenges in import/export duties

PEST Analysis
Adidas policy is to control and monitor hazardous substance to protect human health and environment one of those is to eliminate PVC making progress in finding substitutes like polyurethane, ethyl vinyl, silicones thermoplastic rubber. Adidas also provide training sessions on employment standards and HR systems, health and safety is important for the company. Establishing teams to manage and monitor SARS in Asia factory, washing stations, disinfectant units. Finally Adidas protects and supports The rights of its employees by following all the current employment laws.

As a multinational company adidas helps countries to decrease unemployment by increasing every year the number of employees. The Industrial Production Growth Rate in Germany was 1% in 2001-3, 2004 become 1.7%. Adidas is a reason of this increase Because of the big sponsorship in 2004 Olympic Games. As exporting to Europe is not too expensive as it was before, Europe since 2002 has own money (euro) and the borders are not so tight. Labor salary is high in Germany and France but not so expensive in China (Suzhou). This is the reason that most of factories located in Asia.

Adidas products declare in any raise, age, religion, and lifestyle, always in fashion with special design in any of product. Focus in people who like sports and athletes, almost everybody can purchase adidas products.

Adidas join into technology by make up the world?s first ?smart shoe?, adding a microchip inside the shoe and wireless mp3 player. Also using hot melt system of the production that is environmentally safe, using heat-activated adhesives. The packaging that company use, are suitable for transportation over long distances, humid conditions and extreme temperature changes and use recycled paper and other environmentally-friendly packaging materials.

Strengths-Strong success in Europe-High-performance products-Recent selling of subsidiary “dog” Salomon| Weaknesses-American athletes endorsed by adidas are not as popular as Nike’s-Nike gaining ground on European soccer market-Public dissent over use of sweatshops| Opportunities-Acquisition of Reebok-Growing strength in golf industry through TaylorMade and recent acquisition of Maxfli-Growing revenue from opening of own retail stores| Threats-Foreign exchange rates will result in loss of actual profits|

As mentioned on their website adidas has been a leader in Europe for years and have been able to become comfortable there. Another strength is that adidas-Salomon produces high-performance shoes. They have been able to attract hardcore athletes as customers due to efficiently made shoes ( adidas recently announced that it will be selling its Salomon brand to Amer Sports Corporation for $624 million....
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