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Home » SWOT articles » Adidas SWOT analysis – SWOT analysis of Adidas

Adidas SWOT analysis – SWOT analysis of Adidas

March 4, 2019 By Hitesh Bhasin Tagged With: SWOT articles

Adidas is one of the strongest sports brand in the world. Known most prominently for its range of Shoes, the brand is also a manufacturer for clothing and accessories. Here is the SWOT analysis of Adidas.

Table of Contents

  • Strengths in the SWOT analysis of Adidas
  • Weakness in the SWOT analysis of Adidas
  • Opportunities in the SWOT analysis of Adidas 
  • Threats in the SWOT analysis of Adidas 

Strengths in the SWOT analysis of Adidas

  1. Legacy & heritage: With decades of heritage & legacy, Adidas has travelled a long way to establish itself as a youthful brand. The brand was started in 1949 and has travelled a long way since then.
  2. Diversified portfolio: Company has multiple product portfolio’s with varied range of footwear & accessories under brand name Adidas (premium segment) & Reebok (mid range).
  3. Strong financial position: With its 2400 store globally accounting $4.3billions, the company is in strong financial position.
  4. Distribution network: By selling it from online stores to company owned stores to supermarket stores, Adidas has an effective distribution system for their products available through different channels.
  5. Branding by creating touch points with the community: Celebrity endorsements & sponsoring major sports organizations such as FIFA, UEFA, NBA & Olympics has increased the awareness of Adidas in the market & hence it has increased the highly targeted customer base as well.
  6. Collaborations & memberships: Strong relationship within the sustainability area with organizations such as International Labour organization, International Finance Corporation has given the company an edge over competitors so that they can have a sustainable business.

SWOT analysis of Adidas - 2

Weakness in the SWOT analysis of Adidas

  1. Premium price range: High price range due to innovative technology & Production methods have made the brand affordable to limited customers only, especially in developing countries.
  2. Outsourced manufacturing: Adidas has 93% of production outsourced to 3rd party manufacturers (largely to Asia) to avail of low labour cost & easy availability of resources. They are running a risk of over dependency on outsourcing especially in Asian markets. Also, the overall quality of products perceived by the consumers of developed economies is a major concern as far as brand is concerned.
  3. Limited product line: Adidas along with the recently acquired Reebok brands, has got only 2 brands under their group although they have got deep assortments within these brands. Thus, there is more scope for product line expansion.

Opportunities in the SWOT analysis of Adidas 

  1. Changing Lifestyle: With the saturation of developed economies, changing taste & preferences, education & changing lifestyle of developing economies, there is a steep rise in the demand of premium goods & services.
  2. Market development: Entering into new markets will be the only way to succeed in the future because developed economies are already having high competition.
  3. Expansion in product line: Expanding its product line will open a new set of opportunities while at the same time it can differentiate itself from the competitors by following this strategy.
  4. Increasing demand of premium products: If we only consider the Indian market then there is a growth rate of 33% in demand of premium products. This tells us the future business opportunity & expanding market size of developing economies.
  5. Backward integration: This will be smart strategy if followed by Adidas as it will help Adidas to secure their patent rights & also integrate their R&D with the operational team in order to work in open system.

Threats in the SWOT analysis of Adidas 

  1. Competition: Although Adidas is a global brand but it is facing fierce competition from other brands like Nike which is No.1 brand and Adidas being in 2nd Position in this premium segment. Besides this, there is regular competition from local players, substitutes and market penetrators.
  2. Supplier Dominancy: Due to majority of its production being outsourced; Suppliers have more bargaining power then the company.
  3. Government Regulations: With its 35% products manufactured in China & 93% of production happening in Asia, Import regulations, duty & tariffs plays a critical role in the pricing and success of the company.

Related posts:

  1. SWOT analysis of Apple Inc – Apple SWOT analysis
  2. SWOT analysis of FedEx – FedEx SWOT Analysis
  3. SWOT Analysis of Pepsi – PepsiCo SWOT analysis
  4. SWOT analysis of Procter and Gamble – P & G SWOT analysis
  5. SWOT analysis of Zara – Zara SWOT analysis
  6. SWOT analysis of L’oreal – L’oreal SWOT analysis
  7. SWOT analysis of Pantene – Pantene SWOT analysis
  8. SWOT Analysis of Sony
  9. SWOT Analysis of Prada
  10. SWOT Analysis of Huawei
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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world.

Comments

  1. piyush says

    Dear Sir,
    its a great thing to updated and brushup our knowledge,through your mail…..& also its a good platform to learn and enhanced our knowledge.

    Reply
    • Hitesh Bhasin says

      Thanks for the feedback Piyush :)

      Reply
  2. HX says

    Can I know when did you published this article? Is this the latest SWOT analysis of Adidas?

    Reply
  3. youssefsherif says

    i think that you have more than one spelling mistake.

    Reply
    • Hitesh Bhasin says

      Thanks for the feedback. Trying to correct the same slowly but surely

      Reply
  4. Paul says

    Where can i find your references?

    A lot of stats that could easily be thrown in.

    Reply
    • Hitesh Bhasin says

      Why would i throw in statistics? And you want references, just search google for the statistics. I am not spoiling my site by entering 100’s of different websites as references. I do refer to a lot of them when searching for statistics.

      Reply
  5. HOZIFA says

    Thank you so much Hitesh Bhasin you helped a lot for my project, I was looking for a lot of websites but this one turned out to be the best Thank You man!

    Reply
  6. Eng kimhoung says

    Thank you very much , i’m a student in Cambodia , my lecture tell me to research about Adidas Swot analysis. and u update the great data for me .. thank so much .

    Reply
    • Hitesh Bhasin says

      You are welcome. Glad we could help you :)

      Reply
  7. Mohd Arsalan says

    Thank you so much sir. We really need a platform like this to enhance our knowledge.

    Reply
  8. Marisol says

    Muchas Gracias, por sus valiosos aportes y su forma de compartir el conocimiento, lo cual nos ayuda en la tarea del educar. un abrazo desde Chile.
    Marisol

    Reply

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