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Adidas Company: Swot Analysis

Strengths

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1. Established model name – which means Adidas has already built up an excellent status and it has a large market share within its trade. 2. Good retail links – Adidas has established good links with outlets and shops, which sell Adidas’s products. three. Established worldwide distribution network – which means Adidas’s products are shipped to a massive number of nations. 4. Famous sports activities stars promoting products – Adidas has a collection of football superstars who wear/advertise their products, including David Beckham, Zinedine Zidane, Stephen Gerrard etc.

5. High degree of sales – Meaning Adidas promote a large amount of products. 6. Good status for high quality – Adidas have built up a great reputation over the years for the quality of their goods.

Weaknesses

1. A large amount of finance is required for research and improvement of latest merchandise, subsequently their costs are high – because of this Adidas require a appreciable amount of funds so that they’ll carry on producing top of the range products. 2. Reliant on the game trade – This implies that if there was not a market within the sport business, Adidas wouldn’t find a way to outlive as they only produce items inside this business.

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Opportunities

1. New merchandise – One possibility, which Adidas may take, is producing new merchandise. 2. Make offers with sports stars – Adidas may try to persuade extra sports stars to put on their products by offering them offers. three. Expand distribution community – Adidas could additionally export their products to new international locations where their items weren’t beforehand sold.

4. New unrelated merchandise – Another possibility for Adidas is to make new products outdoors of the sports industry.

Threats

1. Competition – Adidas’s competitors consists of Nike, Reebok, Puma, Umbro, Diadora and Lotto and so on. These organisations may finally take Adidas’s market share, forcing Adidas out of the market, making them bankrupt. 2. Inflation of materials would cause costs to rise, therefore less customers would buy Adidas’s products – which means if the costs of materials used had been to rise then this may trigger the costs of Adidas’s goods to rise, because the merchandise would be more expensive to make. This would imply that not as many individuals would purchase their goods at higher prices.

http://www.telegraph.co.uk/finance/london-olympics-business/8545104/London-2012-Olympics-Adidas-aims-to-beat-Nike-into-second-place-at-Games.html London 2012 Olympics: Adidas aims to beat Nike into second place at Games It isn’t only the athletes that shall be competing for first place at subsequent summer’s Olympic Games. Adidas, the German sportswear model, plans to use the video games as a springboard to overhaul its arch rival Nike as the biggest sportswear company within the UK.

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Nike is at present market leader in the UK with an 18pc share of the ultra-competitive £4.3bn sportswear market. Adidas is in second place with a 15pc share, however hopes that its status as official sportswear companion of the Games will assist it achieve its aim of overtaking Nike by 2015 at the newest. As properly as kitting out the athletes in 25 of the 26 Olympic sports – equestrianism requires very specialised equipment – Adidas will dress the 70,000 Olympic volunteers, provide the outfits for the pre-games torch relay and create clothing for the athletes to put on in the Olympic Village. Adidas is also the Games’ official clothing licensee, and will sell Olympic-themed and branded clothes via its own shops and third-party retailers, corresponding to Tesco and Asda. On top of this, it has appointed Stella McCartney, the designer and daughter of Sir Paul, as the artistic director of Team GB.

She will provide the team with clothes similar to their signature tracksuits and has also designed more modern “capsule” ranges that shall be out there on the high road. (High avenue retailer Next will provide Team GB with their formalwear, such as the suits for the opening ceremony.) There shall be a big sustainable and environmentally-friendly element to the clothing, Adidas said. It isn’t inconceivable that some of the athletes’ package shall be at least partially created from recycled plastic drinks bottles. Herbert Hainer, Adidas’s chief govt, stated the corporate is hoping to attain gross sales of£100m from its Olympic clothes strains.

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“It is the ideal platform for us to indicate the world that we are one of many best sports brands in the world,” he said on a journey to London on Friday. He described Ms McCartney’s designs as “fantastic”.

Mr Hainer added that he is confident Team GB will do well. “The preparation and enthusiasm is tremendous, and it will help us hit our target,” he stated. Adidas will bolster its advertising all through the UK in the run-up to the Games by opening 100 momentary “AdiZones” – areas that can include free-to-use tennis, soccer or basketball gear. Gil Steyaert, Adidas’s managing director of market north – the geographical space that includes the UK – stated these zones will attract youthful shoppers to the Adidas brand. “We are one of the brands that’s most relevant to the youth market. We prefer to consider we will be the cool model of the Games,” he said. The complete point of the train is to knock Nike off its perch within the UK, he added. To do that, Adidas should beat Nike in London, the place it’s the prime sports brand by some distance.

Mr Steyaert said Adidas is the most well-liked model in certain areas of the north of England, such as Liverpool. However, it should win London if it needs complete dominance. Mr Steyaert said: “London is a place where we don’t have management yet. While we do have management in different components of the UK, London is essential.” Adidas has invested around £100m in the 2012 Olympics. This determine is split between the worth of changing into an official partner, the value of manufacturing the clothes for the athletes, the volunteers and the retailers and the price of marketing the ranges and the corporate. Even if the corporate achieves its desired prime line gross sales of £100m, it will only go some way to paying off the £100m bottom-line investment.

Mr Hainer admitted that if looked at purely on a revenue and loss foundation, the funding is a “big loss”. However, he said that the optimistic advantages to Adidas’s model and standing within the UK are manifold. Nike is unlikely to sit down again and permit Adidas to press forward with its assault. It has taken a big store within the Westfield buying centre simply next to the Olympic site, a shopping centre via which 70pc of ticket holders to the main stadium will pass, and it has signed a deal to be part of Boris Johnson’s Legacy for London sports activities plan. But Mr Hainer is equally bullish. “I am very confident that we’re going to have a presence that won’t be missed,” he mentioned. “When you are enjoying in the sporting items area, you wish to win.” Adidas’ wealthy history in the Olympics

Adidas’ involvement in the 2012 London Games continues the company’s “rich history” in the Olympic movement, chief government Herbert Hainer said.

In the 1928 Amsterdam Olympics, Lina Radke-Batschauer was the first athlete to win an Olympic gold medal sporting Adidas shoes. She set a record time in the women’s 800m. Adidas sneakers were additionally worn on the 1952 Helsinki Games by Emil Zatopek, the Czech long-distance runner, who won three gold medals in one week. Adidas-wearing athletes also dominated the 1968 Olympic video games in Mexico. Among them was Dick Fosbury, who cleared 2.24m to take the gold medal within the high bounce utilizing a model new approach.

Nike and adidas are sportswear companies whose products are in style all over the world, whereas Nike has the higher hand in sales and sponsorships, Adidas is rising. Adidas owns Reebok, Taylor Made golf firm and Rockport. Nike owns the Jordan Brand, Umbro, Hurley, Converse and Cole Haan.

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