Business Policy
SWOT Analysis
Strength * Adidas is a globally know brand name. * . Produce a high quality products * Diversity and variety in products offered * Large market share (16% of global footwear market) * Major sponsor for a number of global sporting events * Purchasing of Reebok * Adidas has a Global Presence with over 2400 stores worldwide in a variety of regions. These alone account for nearly €2.8bil. * Famous sports stars advertising products – Adidas has a series of football superstars who wear and advertise their products, including David Beckham, Zinedine Zidane, Stephen Gerrard etc. Weaknesses * High prices in some products * Online customer service not "helpful" or easy to find * Not utilizing Reebok * Stiff competition and similar big brands means customers have high brand switching * The products can sometimes be costly due to innovative technology or production method * E-commerce is limited to USA Opportunities * Entering the Asian market, China is the fastest growing economy in the world. * Entering the female market * Social trend and popularity of social media sites such as Facebook, allowing Adidas to interact directly and build relationships with potential and current customers. * Sponsorship of global sports events which improves the company’s global brand. These include an 11 year sponsorship on the NBA, the 2012 GB Olympic Games and the continued sponsorship of the FIFA WC. * Tie-up with emerging sports teams/clubs/players internationally * Collaborate with other online retailers to offer Adidas products Threats * Nike competition. Nike has strong reputation in the footwear and apparel industry * Global economic downturn. * Increase in the Price of Raw materials * Competition from designers such as Hugo Boss and Lacoste. * fake imitations affect brand image
Strength * Adidas is a globally know brand name. * . Produce a high quality products * Diversity and variety in products offered * Large market share (16% of global footwear market) * Major sponsor for a number of global sporting events * Purchasing of Reebok * Adidas has a Global Presence with over 2400 stores worldwide in a variety of regions. These alone account for nearly €2.8bil. * Famous sports stars advertising products – Adidas has a series of football superstars who wear and advertise their products, including David Beckham, Zinedine Zidane, Stephen Gerrard etc. Weaknesses * High prices in some products * Online customer service not "helpful" or easy to find * Not utilizing Reebok * Stiff competition and similar big brands means customers have high brand switching * The products can sometimes be costly due to innovative technology or production method * E-commerce is limited to USA Opportunities * Entering the Asian market, China is the fastest growing economy in the world. * Entering the female market * Social trend and popularity of social media sites such as Facebook, allowing Adidas to interact directly and build relationships with potential and current customers. * Sponsorship of global sports events which improves the company’s global brand. These include an 11 year sponsorship on the NBA, the 2012 GB Olympic Games and the continued sponsorship of the FIFA WC. * Tie-up with emerging sports teams/clubs/players internationally * Collaborate with other online retailers to offer Adidas products Threats * Nike competition. Nike has strong reputation in the footwear and apparel industry * Global economic downturn. * Increase in the Price of Raw materials * Competition from designers such as Hugo Boss and Lacoste. * fake imitations affect brand image