Swot adidas

1. FUNDAMENTALS OF MANAGEMENT
ASSIGNMENT-2

Strategic planning process
ADIDAS-ALL DAY I DREAM ABOUT SHOES
 Inputs:
People:
Adidas claim that their people are crucial to his success. Achieving there goal to
be the global leader in sporting industry wholly depends on the talents and engagement of their
employees. They reward the staffs for their achievements. As employers they take responsibility to
ensure health and safety to his people. They also look after their employees by promoting global
mobility, helping staff achieve a healthy work-life balance, and offering access to a wide range of
company sports activities.
Capital:
The company revenue for 2009 was listed at 10.38 billion and for 2008 figure at €10.80
billion. As a Group, ADIDAS target leading market positions in all markets where they compete.
With almost 180 subsidiaries worldwide, they have prioritised investments based on those
markets which offer the best medium- to long-term growth and profitability opportunities.

Goals:
Adidas vision is to enhance social and environmental performance in the company and the
supply chain, thereby improving the lives of the people making their products. It strives to be the
global leader in the sporting goods industry .
 Company profile:
Purpose:
ADIDAS is a major german based sports apparel manufacturer and parent company of the
Adidas Group, which consists of the reebox sportswear company taylor- made adidas golf
company, and rockport. Besides sports footwear, the company also produces other products such

2. as bags, shirts, watches, eyewear and other sports and clothing related goods. The company is the
largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the
world .For over 80 years the adidas Group has been part of the world of sports offering sports
footwear, apparel and accessories. Today, the adidas Group is a global leader in the sporting goods
industry and offers a broad category of products.
Objectives:
The key objectives were to reinforce adidas position as an innovator and technologically
strong marketer world wide. They utilized the 3G phone to connect with the football-mad
populous.
 Orientation of top managers:
Values:
The adidas group were:
 Consumer focused
 Innovative and are design leaders
 Global organization
 Committed to continous strenghting of brands and products
 Dedicated to consitently delivering financial results.
Attitudes:
Consumers needs choice. Whether it is the athlete or the casual consumer searching for the
next fashion trend,adidas is focussing to develop and create experiences that engage consumers in
long-lasting relationships with their brands.
Preference:
Speed is the key to overcome competition. They are committed to meet the full range of
customer and consumer needs which is most prefered, by ensuring product availability in the
correct size and colour, providing technical innovations ,latest fashion product to the highest
quality standards.

Direction of the company:
Adidas is directed towards continuously strengthening thier brands and products to improve
the competitive position and financial performance.To become the global market leader in
sporting good industry is thier objective.

3.  Alternative strategies:
Adidas mission is to be the leading sports brand in the world, to achieve this, the brand’s
unique product has to expanded to premium fashions from professional athletes. It allows adidas to
exploit market opportunities,satisfy multiple consumer needs from various angles.It also reduces
risks from one sector.
 Evaluation choice of strategies:
In 2009, the adidas Group identified their alternatives and took the strategic decision to
move from a single brand structure to a functional multi-brand structure for adidas and Reebok
brands. This led to the creation of a Global Sales and increased the global image which helped
them acheive their goal to become the global market leader.
 Medium & short range planning:
Adidas aims at achieving the market leader position globally. It indulges into number of
activities to promote its brand value. They develop strategies to achieve their short term objective
of competing their rivals and long term goal of being the global market leader. Adidas
commitment to innovation differentiate it from its competitors.

4. SWOT & TOWS ANALYSIS OF ADIDAS

SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company. It identifies the internal and external factors
that are favorable or unfavorable for business.

SWOT ANALYSIS OF ADIDAS
Opportunities

•Change in consumer lifestyles
•Available technological innovations
•Entering new markets
•Expand customer base
•Expand product/service lines
•Market Diversification
•Merger or ACQUISITION
Threats
 cut throat competition from rival apparel
brand
 demand forecast for hot market item
•Competition from foreign markets
•Competitor's actions
•Change in consumer lifestyles\patterns
•Growing power of customers to set the price
•Growing power of suppliers to set the price
•Financial slowdown
•Increase in taxation
•New competitors entering the market
•Price war between competitors


Strengths
•Good financial position
•Effective Marketing Strategy
•Market Leadership
•Strong online presence
•Strong brand
•Strong international operations
•Strong distribution chain
• Competitive pricing
Weakness
• High cost structure
• Over pricing
• Low quality products/services
• Limited product line
Online customer service not helpful

5. TOWS ANALYSIS OF ADIDAS


MY opinion:
I agree with their strategy, that sales will increase by sponsoring to the world cup
 Football being the most popular sport across the world is the prime focus for
Adidas.
 To surge a sales the strategy of adidas to endorse 12 national football teams will
generate the revenues.

TOWS
External opportunities External
Threat
Internal
Strength
Bring in innovative products
Expand distribution line
Being the market leader it can get
into Merger or acquisition.
Meet competition with advanced
technology
Establishing strong brand image to
avoid cut throat competition
Expand with the change in growth of
customers
Internal
weakness
• Develop products with different price
levels
• Build strong online service
• Reduce competition by developing
flexible product line
• Fluctuation in price and hire pricing can
be avoided
• Quality products equal to competitors
can be manufactured