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Get Adidas Case Study Swot Analysis at Best Price- SWOT & PESTLE Analysis of adidas

Available 24/7 Experts Guidance For Adidas case study

Introduction

Adidas is the German multinational company that deals with sport shoes and sport wear industry. This is one of the most attractive industry that has high popularity index. The company was established in the year 1924 and till now have about 60,000 employees working for this brand. The company is known for their sustainable business practices. In the year 2018, the company accomplished their place in the Dow Jones Sustainability Indices (DJSI). The mission of the company is to be the best sustainable sports brand in the world. The company dedicates its goals to improve the lives of the people associated with the company and beyond.

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SWOT Analysis

Strengths

  • The company has more than 800 production factories in more than 50 countries all over the world.
  • The company makes sure that the sustainability is at the priority list along with the company profits
  • The company has a strong marketing base
  • The reputation has increased after their responsible and innovative business results.
  • The effective point of sale develops strong network for the company
  • Recycling and reuse strategy for product development contributes in their cost cutting and greater profit making.
  • The European market presence is strong and prominent. This contributes in the business of the company.

Weaknesses

  • The market risks are increasing. The inflation and economic disturbance are decreasing the sales of the company

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  • The foreign exchange market rates are fluctuating on regular basis. As the company ahs a number of international ventures, it is hard to avoid the impact of these foreign exchange problems.

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  • The financing of the company is limited. Mostly sport events are the primary source of their funds.

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  • The market competition is getting hard for the company to manage. High end and regular brands are also producing quality products in the market.

Opportunities

  • The world -wide rise in the health and sport interests could be detected easily. This contributes as a huge opportunity for the company
  • The growth opportunity of the company in Asia is huge
  • The e-commerce sales are increasing. The company is selling more in the online channels. In future this will be huge open market for the company.

Threats

  • Intense competition in the sports section is one of the threats for the company.
  • The company business is highly dependent on the sports segments.

The SWOT analysis of the company shows that the increase in the health trends are instrumental in company performance. The customer base is increasing as people are aware of the health as well as the environmental aspects. The sustainable approaches for business are contributing in making it more popular among the target market. The weaknesses of the company dependency on the core business segment. The company depends on the sports sector for their performance. The competition is increasing as the entry barriers are less in this sector. In spite of that the innovative and sustainable approach of the company helps them to keep their loyal customers with them.

 

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PESTLE Analysis

Political factors

For the sports company the political stability is important. The political stability contributes in employment issues. Again, the political stability is instrumental in economic growth of the country and company.

The political factors are influential in the corruption rates of a country. Also, the wage regulations and the mandatory employee benefits are decided by the political factors in a country.
Economic factors Free markets and related economic factors in the sports industry are at the discussion in this section. The Adidas company has their ventures in both the developed and developing countries. The market prices along with the labour cycles, infrastructure for the company performance are impacted by the economic factors. The company has to analyze the economic availability and infrastructure before finalizing a plant for their oil and gas ventures in different countries.
Socio-economic factors The socio-economic factors that work for the company are the demographic skills of the population. This decides the type pf employability available in the market. The education standards are the mark of how the workforce is going to perform and how much they are going to invest in their skill development.
Technological factors Technological factors are related to the infrastructure that are needed for production of the sports wear and accessories. The sports -wear is the popular segments that needs continuous changes and innovation.  This is the reason that the company uses the location that are well developed in technological aspects. The company services units are positively located.
Legal factors Legal factors in the sports wear industries like environmental laws, foreign investment laws, and the employment laws are important for the company production management. All these are the important laws that the company has to take care of while doing business in different countries.
Environmental factors The company is doing great in their sustainability issues. The eco-friendly approach of the company is instrumental in increasing their customer loyalty

 

Recommendations

  1. The first thing is to increase their marketing for the greater customer segments. The increase in the core business process and the core marketing will give greater exposure to the company business. It is necessary for the company to work with the customer segment that is wider and variant in nature.
  2. The business growth of the company could be increased through collaborative measures. Adidas already has signed sports sponsorship programs. At this point of time, they should be focused in creating more financial opportunities for coming years.

Conclusion

In this case study we found that Funds and inverted business structure are the main issues for adidas performance. Therefore, this can be concluded that if the company works for developing their funds more effectively, they will have greater scopes of success. At the same time, managing the financial aspects and finding for greater investment opportunities will help in their business effectiveness. The sustainable business practices are being adopted all over the world. The strategic approach of the responsible business along with the stated recommendations can improve the business performance of the Adidas company in long run.
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