SWOT Analysis of Adidas Gives A Reliable Management Framework

SWOT Analysis of Adidas Gives A Reliable Management Framework

SWOT is a strategic tool to analyze Adidas’s strengths, weaknesses, opportunities, and threats. It involves internal strategic factors (strengths and weaknesses) and external strategic factors (opportunities and threats). Adidas has a reliable management framework that allows a company to set its performance and position. It is a reality that Adidas is a respected brand in the retail and lifestyle industry. Now, you will read about the SWOT Analysis of Adidas. We will also highlight the segmentation and USP (Unique Selling Proposition).

Former Name: Dassler Brothers Shoe Factory (1924–1949)

Company: Adidas Group

Founder:Adolf Dassler

Established: August 18, 1949, Herzogenaurach, Germany

CEO: Kasper Rørsted (Oct 1, 2016–)

Area Served: Worldwide

Category: Athletic Apparel and Accessories

Sector: Lifestyle and Retail

Tagline: “Impossible is Nothing”

Unique Selling Proposition: Sports equipment, Accessories, and Apparel

Sector: Men, Women, and Kids Fitness and Sports Equipment

Target Audience: Upper Middle and Lower Class

Number of employees: 62,285 (Dec. 2020)

Revenue: $22.668B, a 14.39% decline from 2019

Net Income: $0.493B, a 77.7% decline from 2019

Strengths of Adidas: SWOT Analysis of Adidas

1. Since 1924, Adidas has had a high brand value and long legacy.
2. The biggest strength of Adidas is its sponsorship. It is currently sponsoring major sporting events. From Olympics to teams, sportspeople, and more, these sponsorships have proved beneficial for the company in so many ways.
3. Nobody has any doubt that Adidas is a global company with vast worldwide reach. It is present in every country.
4. The diverse product portfolio is a major strength of Adidas. They offer sports equipment, shoes, clothes, and accessories.
5. Adidas has established itself as a robust company due to its innovative and effective marketing.
6. It currently has more than 62,000 employees worldwide.
7. Effective use of TVCs, print media, hoardings, online ads etc. shows the value of Adidas.
8. You will find several famous sports stars who are the brand ambassador of Adidas.
9. Easily get the products of Adidas from its own website and other leading online sites.

You can read on: MARKETING STRATEGY OF ADIDAS | ADIDAS MARKETING

Weaknesses of Adidas – SWOT Analysis of Adidas

1. Adidas is a luxury brand, so some of its products are highly costly. It creates a weakness for Adidas because it limits its audience. The higher prices of these products are due to the innovative production method and technology.
2. Various similar brands in the lifestyle industry offer the same products. So, Adidas operates in a highly competitive environment that can damage its profit and revenue game.

Opportunities for Adidas – SWOT Analysis of Adidas

1. In order to stay competitive in the relative market, Adidas should generate more than 50 latest foot-friendly designs annually.
2. They should focus on the latest and stylish designs of shoes and clothes.
3. Adidas should link up with merging players, teams, and sporting events. It increases brand awareness and presence.
4. They should sponsor sports academies.
5. In order to increase their consumer base, they must build budget-friendly designs for Gen Z.

Read on: PESTLE ANALYSIS OF ADIDAS | ADIDAS PESTLE

Threats to Adidas – SWOT Analysis of Adidas

1. Other brands like New Balance, Under Armour, and Nike offer more varieties and styles, which creates a threat for Adidas.
2. Adidas is continuously facing stiff competition from other similar brands that are producing fitness apparel and equipment at a discounted price.
3. Fake or pirated brands and products are damaging the reputation and image of Adidas.
4. Local sports brands are giving tough competition to Adidas in some regions.

Competitors of Adidas:

1. Asics.
2. Under Armour.
3. Bata.
4. Fila.
5. Reebok.
6. New Balance.
7. Nike.
8. Puma.
9. Woodland.
10. Umbro.

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