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SWOT ANALYSIS ON ADIDAS

by Abhijeet S on Wednesday 24 November 2010, 12:51 PM | Category: Operations| View: 2333 views
 
 
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SWOT ANALYSIS ON ADIDAS

Adidas AG  is a major German-based sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, TaylorMade-adidas golf company (including Ashworth), and Rockport. Besides sports footwear, the company also produces other products such as bags, shirts, watches, eyewear and other sports and clothing-related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, after its U.S. rival Nike

Adidas was founded in 1948 by Adolf "Adi" Dassler, following the split of Gebrüder Dassler Schuhfabrik between him and his older brother, Rudolf. Rudolf would later establish Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma.

The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo. The "Three Stripes" were bought from the Finnish sport company Karhu Sports in the 1950s. The company revenue for 2009 was listed at €10.38 billion and the 2008 figure at €10.80 billion.

SWOT ANALYSIS ON ADIDAS:

Strengths:

  • Competitive pricing
  • Good financial position
  • Effective Marketing Strategy
  • Market Leadership
  • Strong online presence
  • Strong brand
  • Strong international operations
  • Strong distribution chain

 Weaknesses

  • High cost structure
  • Over pricing
  • Low quality products/services
  • Limited product line

Opportunities:

  • Change in consumer lifestyles.
  • Available technological innovations
  • Entering new markets
  • Expand customer base (Geographically or through new products)
  • Expand product/service lines
  • Market Diversification

 

Threats:

  • Merger or takeover
  • Competition from foreign markets
  • Competitor's actions
  • Change in consumer lifestyles
  • Changing consumer patterns
  • Growing power of customers to set the price
  • Growing power of suppliers to set the price
  • Financial slowdown
  • Increase in taxation
  • New competitors entering the market
  • Price war between competitors
  • Bonur Achieved by competitors.
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