Scale of Adidas
Adidas:
Strengths
-Strong success in Europe
-High-performance products
-Recent selling of subsidiary “dog” Salomon
-In many invents is the biggest sponsor
-Strong management team.
-Strong control over its own distribution channel.
-In the soccer industry, it has a stronghold.
-No bad reputation like child labour or environment pollution.
-Diversity and variety in products offered.
-Strong financial position with minimal long term debts
-Innovative designs in footwear enabling consumers to design their own shoes online
-First movers advantage in e-commerce 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
-E-commerce is limited to USA
-Direct sale to consumers is creating conflicts with its own resellers.
-High prices in some products.
-Online customer service not ‘helpful’ or easy to find.
Opportunities
-Acquisition of Reebok.
-Growing strength in golf industry through TaylorMade and recent acquisition of Maxfli
-Growing revenue from opening of own retail stores.
-Collaborate with other online retailers to offer Adidas products. Threats
-Foreign exchange rates will result in loss of actual profits.
-Nike’s strong reputation in the footwear and apparel industry.
-Continuing challenges in import/export duties.
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.com). Adidas recently announced that it will be selling its Salomon brand to Amer Sports Corporation for $624 million. Salomon was originally acquired by the Adidas Group in 1997 when it paid $1.4 billion for Salomon and its subsidiaries, including golf brand TaylorMade and cycling brand Mavic. The sale will include
Strengths
-Strong success in Europe
-High-performance products
-Recent selling of subsidiary “dog” Salomon
-In many invents is the biggest sponsor
-Strong management team.
-Strong control over its own distribution channel.
-In the soccer industry, it has a stronghold.
-No bad reputation like child labour or environment pollution.
-Diversity and variety in products offered.
-Strong financial position with minimal long term debts
-Innovative designs in footwear enabling consumers to design their own shoes online
-First movers advantage in e-commerce 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
-E-commerce is limited to USA
-Direct sale to consumers is creating conflicts with its own resellers.
-High prices in some products.
-Online customer service not ‘helpful’ or easy to find.
Opportunities
-Acquisition of Reebok.
-Growing strength in golf industry through TaylorMade and recent acquisition of Maxfli
-Growing revenue from opening of own retail stores.
-Collaborate with other online retailers to offer Adidas products. Threats
-Foreign exchange rates will result in loss of actual profits.
-Nike’s strong reputation in the footwear and apparel industry.
-Continuing challenges in import/export duties.
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.com). Adidas recently announced that it will be selling its Salomon brand to Amer Sports Corporation for $624 million. Salomon was originally acquired by the Adidas Group in 1997 when it paid $1.4 billion for Salomon and its subsidiaries, including golf brand TaylorMade and cycling brand Mavic. The sale will include