Developing a SWOT Matrix for Adidas (Marketing Assignment for MBA students)

Developing A SWOT Matrix For ADIDAS AGImpossible is nothingHistory A name that stands for powers in all types of sport around the globe. adidas is registered as a company, named after its founder: Adi from Adolf and Das from Dassler. The idea was as simple as it was brilliant. Adi Dassler’s aim was to provide every athlete with the best possible equipment.It all began in 1920, when Adi Dassler made his first shoes using the few materials available after the First World War.TodayThe adidas product range extends from Shoes, Apparel and AccessoriesFor basketball, soccer, fitness and training to adventure, trail and golf.LogoThe shape formed by the barsrepresents a mountainindicating the challenge to be faced and the goals to be achievedForm of business ownershipAn international corporation with shareholders, customers, suppliers, employees and Executive and Supervisory Board members from all over the world. The name of the Corporation is adidasSalomon AG It is a listed Company (Listed in Deutsche Börse stock market)Products adidas Sport PerformanceProfessional sportswear, equipmentFunctional and innovative productsBasketballFootballGolfRunningTennisCyclingAccessory (watch, sunglasses)adidas OriginalsCasual wearPerfect fusion of sport authenticity and global street styleshoesapparelbagsadidas Sports StyleFashionable, stylishMenWomenAccessoriesFootwearSWOT ANALYSISSWOT MATRIXTHANK YOU

Developing A SWOT Matrix For ADIDAS AG

Impossible is

nothing

Histor y

• A name that stands for powers in all types of sport around the

globe

• adidas is registered as a company, named after its founder: 'Adi' from

Adolf and 'Das' from Dassler The idea was as simple as it was

brilliant

• Adi Dassler’s aim was to provide every athlete with the best possible equipment.

• It all began in 1920 , when Adi Dassler made his first shoes using the few materials available after the First World War.

from

Shoes, Apparel and Accessories

For basketball, soccer, fitness and training to adventure, trail and golf.

The shape formed by the bars

represents a mountain indicating the challenge to be faced

and the goals to be achieved

Form of business ownership

• An international corporation with

shareholders, customers, suppliers,

employees and Executive and Supervisory Board members from all over the world

• The name of the Corporation is

adidas-Salomon AG It is a listed Company (Listed

in Deutsche Börse stock market)

• adidas Sport Performance

• -Professional sportswear, equipment

• -Functional and innovative products

• Basketball

• Football

• Golf

• Running

• Tennis

• Cycling

• Accessory (watch, sunglasses)

Products

• adidas Originals

• Casual wear

• Perfect fusion of sport authenticity and global street style

• shoes

• apparel

• bags

• adidas Sports Style

• Fashionable, stylish

• Men

• Women

• Accessories

• Footwear

SWOT ANALYSIS

1 Global leader in sportswear industry:

worldwide recognized brand, strong

reputation and sustainable business.

2 Strong advertising and public relation events

3 Strong worldwide distribution network

4 Strong workforce and capital.

5 Diversified and innovated sport products in

sportswear segment

6 Possess brand name: Reebok and Salmon

which were the biggest competitor of Adidas

1 The prices of products are high

2 Outsourcing manufacturing causing compromises in product/service quality due to lack of necessary resources and competencies.

3 It has been serving limited segment

4 Cost structure of company is high

5 Web booking of Adidas is very limited: only in USA and EU.

6 Failure to narrow the market share gap with NIKE causing Adidas investors lose

confidence on Adidas Management

1 2014 FIFA World Cup™ in Brazil will be held

in this June

2 Fitness and Healthy awareness among

consumers are increasing more and more.

3 Expand the market of women and children

4 Explore more market in developing countries.

5 Merger and acquisitions trends are increasing

to gain competency.

1 Risk of fake product on design and low quality

in lower price from small manufacturers.

2 Technology is copied to produce low price products with same quality.

3 Negative exchange rate variances in emerging markets such as Russia and Argentina.

4 Increasing labor cost in cost of sales

5 Nike is gaining market share from Adidas in Europe.

SWOT MATRIX

Opportunities

Strengths

1 Global leader in sportswear industry: worldwide recognized brand, strong reputation and sustainable business.

2 Strong advertising and public relation events

3 Strong worldwide distribution network

4 Strong workforce and capital.

5 Diversified and innovated sport products in sportswear segment

6 Possess brand name: Reebok and Salmon which were the biggest competitor of Adidas

7 The sponsor of the 2014 FIFA World Cup™ in Brazil

SO Strategies

Weaknesses

1 The prices of products are high

2 Outsourcing manufacturing causing compromises in product/service quality due

to lack of resources and competencies.

3 It has been serving limited segment

4 Cost structure of company is high

5 Web booking of Adidas is very limited: only

in USA and EU.

6 Failure to narrow the market share gap with NIKE causing Adidas investors lose

confidence on Adidas Management

WO Strategies

1 2014 FIFA World Cup™ in Brazil will be held in

this June

2 Fitness and Healthy awareness among

consumers are increasing more and more.

3 Expand the market of women and children

4 Explore more market in developing countries.

5 Merger and acquisitions trends are increasing

to gain competency.

6 New trend of e-commerce.

Threats

1 Use brand and reputation to bid for sponsor of worldwide sport events (S1, S2, O1).

2 Capture new trend by doing marketing to increase awareness (S2, O2).

3 Product diversification and innovation for new users (S5, O3).

4 Utilize worldwide distribution network to penetrate new market (S3, O4)

5 Use strength of capital and reputation to acquire other firms to diversify product and reduce competition (S4, O4)

ST Strategies

1 Add more values to product to reduce price sensitivity (W1, O1).

2 Acquire other firms to diversify product to other segments (W3, O5).

3 Build up a strong e-commerce to catch up new trend (W5, O6).

WT Strategies

1 Risk of fake product on design and low

quality in lower price from small

manufacturers.

2 Technology is copied to produce low price

products with same quality.

3 Negative exchange rate variances in emerging

markets such as Russia and Argentina.

4 Increasing labor cost in cost of sales

5 Nike is gaining market share from Adidas in

Europe.

1 Focus on quality, new design and innovation to differentiate from low price competitors (S5, T1)

2 Using marketing capability to add more values to products (S1, S2, T2).

3 Experience and skillful staffs can help reduce the effects of international currency issue (S4, T3)

4 Use its power to work with manufacturers for new manufacturing places with lower cost (S1,T4)

5 Bid for sponsor of EU sport events to gain awareness and market share (S1, S2, T5)

6 Acquire EU firms to fight with Nike (S6, T5)

1 Offer regular selling promotion to approach low income consumers (W1, T1,T2).

2 Concentrate production to several vendors for more effective supervision and control both in cost and quality ((W2, T4).

3 Strong action to fight with Nike to gain the market share and the confidence of shareholders (W6, T5)

THANK YOU !