Adidas Case Study Analysis

Adidas case study

Introduction

In the sports industry, Adidas is one of the most valuable and popular organisations. Currently, headquarter of the organisation is located in Herzogenaurach, Germany. Adidas specialises in manufacturing sportswear, including accessories, shoes and clothing. In Europe, Adidas is currently the largest manufacturer of sportswear, and it is also the second-largest organisation in this segment, following Nike. Adolf Dassler established Adidas, and later it was joined by his brother Rudolf in 1924. They created the brand Dassler Brothers Shoe Factory. There was a massive contribution of Dassler regarding the development of spiked running shoes. Later, a breakdown occurred in the relationship of the two brothers, and both of them created their brand. Adolf created Adidas, while Rudolf established Puma. Business segments for both these organisations were the same, and for this reason, Adidas and Puma became rivals of each other in the market. In the current aspect, both of these organisations are successful in the sportswear industry, but in comparison, the performance of Adidas has remained much better in the market.If you are looking for marketing assignment help providers in the United States, consider hiring our service.

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Swot Analysis of Adidas:

SWOT analysis is very much crucial for any organisation to identify essential insights about the organisation. It is an essential framework for identifying strengths, weaknesses, opportunities and threats associated with an organisation. In the following section, the SWOT analysis of Adidas is performed.You might use plagiarism checker tool to check the duplicay of the content

Strengths:

• Brand value is one of the most important strengths for Adidas. It has been identified that in the entire sports industry, Adidas is having the rank 3 in terms of brand value. Therefore, brand value is an essential strength for Adidas.
• Adidas is a very well established and known brand to every customer in the sports industry. Adidas is carrying a prestigious legacy with them, which is the main reason behind their well-established and popularity worldwide. For this reason, it is another essential strength for Adidas. Case study help offered by Assignmenthelp.us.
• Quality and innovation have always remained the top priority of Adidas. Adidas has always remained committed to improving its product quality by bringing different types of innovation. In this aspect, Adidas spends a considerable amount of budget every year for research and development. It is another essential strength for this organisation.
• The existing portfolio of this organisation is very much diversified. Adidas is mainly operational in the sportswear industry, but their product in the segment is very much diversified. There are different types of products, which Adidas offers. This diversified portfolio of products is another critical strength for the organisation.
• Adidas is very much focused on its product quality. Adidas has successfully gained a loyal customer base. Having a loyal customer base all around the world is an essential strength for the organisation.
• Adidas has successfully maintained an effective supply chain. For global companies like Adidas, maintaining the supply chain is very much essential to become successful. Adidas has successfully outsourced most of its manufacturing so that a cost-effective solution can be achieved. It has helped Adidas to decrease the operational cost, which is another essential strength for the organisation.
• The financial position of Adidas is also very much vital. This solid financial position has helped Adidas protect its existing market share and has also helped ensure sustainability in the organisational process. The revenue collection of the organisation has also increased steadily year by year. For this reason, the overall financial position of Adidas is very much substantial, which is very important for the organisation.
• The marketing strategy used by Adidas is another essential strength for the organisation. Adidas has successfully balanced its advertisements, promotion and the use of digital technology for marketing. In this way, they have developed an effective marketing strategy.

Weaknesses:

• The products of Adidas are very much expensive compared with other brands in similar segments. Affordability becomes an essential issue for low-income consumers. For this reason, Adidas is not able to capture a large area of the market segment. It is a weakness for the organisation.
• Adidas is currently limited only to sports footwear, sports clothing and accessories. As Adidas relies on these products only, lower market demand for these products can decrease the revenue for the organisation by a large margin. For this reason, it is a significant weakness for the organisation.
• Adidas is highly dependent on its third party manufacturing suppliers. For this reason, Adidas is exposed to the risk of overdependence. Therefore, it is a significant weakness for the organisation.

Opportunities:

• In the current aspect, increased demand for premium sports products has been observed in the market. Therefore, it is an essential opportunity for Adidas, as the organisation's sales can increase due to this reason.
• In Asia and Africa, there are many countries where the peoples' purchasing power is increasing steadily. As the purchasing power of these people is increasing, the premium products of Adidas are becoming affordable to them. Therefore, it will create a significant market opportunity for Adidas.
• In recent years, critical technological advancements have been observed, due to which the development of new synthetic material has become possible. These new materials are much better compared with traditional materials. In this way, Adidas can offer much better quality products.
• Social media has become an essential aspect of product promotion. In this case, Adidas can also use different types of social media for promoting its products. It will help Adidas to promote its products at a relatively lower cost.

Threats:

• Existing market competition is a significant threat for Adidas. The market competition is increasing for Adidas due to different types of technological advancements and globalisation. The performance of Nike, which is the leading market rival of Adidas, is much better, and it is an essential threat for Adidas.
• Adidas is highly dependent on its manufacturing suppliers. Due to this reason, suppliers of Adidas can dominate Adidas in different situations. It is a significant threat for the organisation.
• There are many fake products available in the market, which are being sold as Adidas. These fake products reduce the sales of Adidas and create a negative impression in the mind of customers who purchased the fake product. It is an alarming threat for Adidas.

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Pestle Analysis:

PESTLE analysis is also essential for organisations, as it describes the framework of micro environmental factors, which is used for the environmental scanning component of strategic management. In the following section, a PESTLE analysis of Adidas is performed.

Political:

Adidas is a global organisation, which is operational worldwide. Due to this reason, they need to extend the international supply chain, and they also need to follow the political procedure for each country. Political instability in these countries can be a significant issue for Adidas. Adidas also needs to follow the taxation system for each country.

Economic:

The taxation system, interest rates, wages rates and inflation are the most important economic factors that can affect the performance of Adidas at a large scale. Due to this reason, the profitability of Adidas will also be affected. Most of the products of Adidas are manufactured in China, but the average labour cost in China is increasing, and for that profitability of the organisation is decreasing.

Social:

In this particular aspect, religion, culture, preferences, and lifestyle are the social factors affecting the brand image and performance of Adidas. These factors are also regulating the loyalty of the customers.

Technology:

Innovative technologies can always provide a competitive edge to the organisations over the market competitors, which is also the same for Adidas. Adidas is already incorporating different types of innovative technology in its production and manufacturing process. Still, they need to speed up the incorporation process as the market competitors are going ahead of Adidas regarding technology integration.

Legal:

As Adidas is a global organisation, it needs to comply with the laws and regulations of different countries in which it is currently operational. They can also face some particular regulations for them in any country, and they need to comply with them.

Environmental:

Adidas is currently trying to minimise the utilisation of restricted material for their products. Adidas is also committed to reducing carbon emissions. These decisions will be environmentally friendly, but at the same time, they can also increase the operation cost of Adidas.So, you need not worry about the quality of research when we provide you with Adidas  case study help.

Conclusion:

From the above discussion, Adidas is one of the largest and popular sportswear organisations in the world. In the current aspect, Adidas is the second-largest sportswear organisation in terms of market share after Nike. In this paper, the case study analysis of Adidas has been done where SWOT and PESTLE analysis has been done. From the overall analysis, it has been identified that there are many essential strengths that Adidas is holding in the market. Also, there are many opportunities available for Adidas in the market. Adidas also needs to work on its threats and weaknesses to achieve a better market position. The brand awareness of Adidas is an essential strength for the organisation. In this case, Adidas must make their products more affordable to everyone, which can help to increase the sales percentage for the organisation. In this way, increasing the market share will also be possible for Adidas, which will be a positive sign for the organisation.

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