Adidas SWOT analysis

Adidas is corporation run by shares of the stakeholders and is run on the stock
exchange. It is the second largest manufacturer and biggest seller around the world
and the largest network in Europe. Beside sports goods, the company is also
associated with the manufacture of clothing and wears accessories like shirts, bags,
watches, belts etc. The company is Germany based and is headquartered in
Herzogenaurach after its formal registration in 1949. Since then Adidas has
experienced several owner’s shifts from Adolf to Bernard Tapie by 1990, in 1992 to
Lyonnais bank, and then finally to Robert Louis Dreyfus in 1997, who has made the
empire much wide spread and more renowned.

Strengths

Adidas is the biggest sponsor of the sport events specially football. It

management team is in full strength with 39,600 expert employees serving
worldwide. Brand recognition of the company especially its traditional three strips
style is well reputed. A diverse range of products, specially that being offered on its
website including shoes, bags, shirts, perfumes, toiletries, eye wears and other
clothing related goods. The company has been obeying environmental laws and has
never been accused for pollution. Adidas acquisition includes Salmon groups and
Reebok that has been its biggest rival previously. The company is full on competing
with its American rival Nike and after Nike its popularity is at boost in North
America. In early 2000 the company started a successful joint venture with English
fashion designer Stella McCartney. The company announced Eleven years deal in
2006 to be apparel provider to national basketball association (NBA). Annual revenue
of Adidas is €10.38 billion as per 2009 data €508 million being its operating income.
€245 million profits were calculated previous years. Comfort-ability of the customers
is their key mission and new products are introduces keeping in view the response of
the customers. Employees’ rights and interest are totally safeguarded by Adidas
policies and management. It’s demographically wide spread, every country has
Adidas outlets in every city or the branded products are scattered in different branded
super marts.

Weaknesses

Price though linked to high quality is very high starting from 250 Euro per
item. Web booking is offered only to the USA locations or some locations of Europe.
Proper network of retailing that is manufacturing and transportation to the wholesale
dealers is not always followed and direct purchases from the manufacturer often
create price ambiguity within the customers. Customer care centers are not totally
functional, and problems are faced specially in the case of e- marketing.
Opportunities

Joint Venture of Adidas with English fashion designer Stella McCartney is

promoting the female community to participate in athletics as well as to wear branded
kits of Adidas. Adidas is planning to outscore its web development and ecommerce to
the third party, which would then pay the company through ease at customer edge.

Threats

Fakery of Adidas products is very common as the original products are very
expensive and not easily affordable. Nike that is its strongest partner is paying much
attention to the diversity of models in one item that is feet wear, this leads to
enhanced marketing. The sponsored athletes like Kobe Bryant are reflecting negative
image of the brand through their illegal activities like sexual abuse.