SWOT for adidas

The main competitor for Adidas which should be mentioned is Nike

Another competitor which is worth to mention is Puma

Amer Group PLC and  Finnish Markka.

4. Market segment:

Young men ,women and children with  passion towards fitness and sports

Target group:

Urban upper-middle and upper class

SWOT

Strength

• Biggest sponsor of sport events specificity football. Moreover, they produce official ball for almost each Europe or World Football championship. Another good example may be Olympic Games.
• IT and various new technological gadgets are integrated in their products. For instance their new product “Boot with a Brain” which enables user to track and upload performance data, capturing 360 movement and key performance metrics. In addition, they developed the miCoach system which is integrated in apple products by creating an application which connects your footwear or t-shirt directly to your iphone or ipod.( observes data and a lot more possible actions can be done their)
• First movers in various products such as I mentioned above “Boot with a Brain”
• Brand recognition all over the world with its traditional 3 strips
• Good brand history which created strong positive reputation and acknowledgment
• Sponsors various sports stars such as Lionel Messi or Kobe Bryant
• A divers range of products
• The company always obeys environmental laws and was never involved in pollution
• Adidas acquisitions includes 5 well known brands  
• “Together we Win” strong slogan which shows customers how Adidas cares about them. Moreover that words are strongly marketed inside the company as well. That can be seen even in their annual report. Such attitudes build strong relationship not only with customers but with employers as well.
• Presented everywhere. Almost every country has Adidas outlets
• High quality products guaranteed and well linked to high but competitive price.

      Weaknesses

• There are a significant number of complaints about online service which is not helpful and hard to navigate.
• Internet store is limited. Provided only in USA and some EU countries.
• High price for its products which is fixed everywhere.
• Directs sales from manufacturer creating conflicts and further misunderstandings in terms of price ambiguity

   Opportunities

• Increase in sponsoring female athletes and providing family clothing ( designer Stella McCartney involved)
• Merger or Acquisitions of locally popular brands in various parts of the world and not only them.
• Cooperate with online retailers to guarantee big variety of its products available for online shopping everywhere
• Outsource web development and e-commerce to third party to make it easier for customers to find and to use that service
• Enter new markets, market diversification. (for instance: sponsor extreme sports as redbull does or even produce and market sports drinks)
• Increase usage of technological breakthrough in their products ( for instance more iphone, ipod apps, and integrate wifi for direct gathering of training information)
• Charity is like a trend in nowadays world. Adidas can make a school to train gifted children in various sports it will not cost a lot because the produce sports equipment as well as sponser sports stars of all ages who might be the best coaches for children. Moreover continue providing to various schools and people experience with training and playing with their favourite sports star.
• Cheap products without any trendy design and various modern attributes for lower-class. (As Coca-Cola did) Why should they loose clients?

       Threats

• Cut throat competition from competitors. Nike strong positive reputation and growing popularity.
• Change in consumer lifestyle. Because of the growing rate of obesity and health problems. Or even such a substitute of sports experience as computer spots games such as Kinect or WII.
• Increasing power of customers to set the price ( high price will be a problem) and increasing power of big retailers to force companies to set the price ( harms image)
• Increasing price of raw materials
•  Negative image created by sponsored athletes such as Kobe Bryant and his case about sexual assault
• Increase in import and export duties
• Crises in the world. People are not able to pay such a big price for their products.
• Price war between competitors can force the price to drop in order to sell.

Works Cited

1.  “Annual Report 2011”, Addidas Group,  Web, 15 Oct 2012

2. Official website, Addidas.com, Web, 15 Oct 2012