Adidas is a renowned company of sporting footwear, ethnic clothing as well as accessories and gears. It was established on 18th July 1949 in the name of Adolf Dassler with its headquarters in Herzogenaurach, Germany. It was the Torsion Concept launched in 1989. Equipment Concept (1991), Street Campaign (1992) and Predator Football boot launched in (1994) are among the most famous ideas launched by Adidas since the beginning of its existence. Adidas is aspires to achieve its goals with the slogan that “Impossible is nothing.” This quote is taken from a speech made from Muhammad Ali, the world-famous champion. This slogan sent a strong message to the world that there’s no impossible thing and it is all possible.
Adidas logo The three-striped logo is awe-inspiring and reflects the style and the quality of its product. The primary goal of the firm is to become the most popular business globally. Adidas has seen an increase in sales in recent years. In 2004, the company’s sales totalled 5458 million euros during the first quarter. The company has also launched streetwear and changed the perception of fashion, sports and the attitude toward pop culture.
SWOT Analysis for a company
SWOT analysis is a model that will reveal the strengths and weakness of the business, as well as opportunities and threats. It aids the company to make crucial decisions that will affect the future of its business.
SWOT Analysis of Adidas Company
The SWOT analysis assists the company overcome its weaknesses and to take action towards the chance.
Strength
- Clothing of ethnic originEthnic wear Adidas has introduced attractive ethnic clothing specifically for women. This is causing many women purchase the latest fashion clothes. This is boosting sales.
- Goodwill-Adidas has earned goodwill on the market due to its premium products and the most recent and innovative styles. The products of this brand makes people feel like they’ve bought something of top quality, specifically the Adidas shoes.
- World-wide reachThis company has a global presence. There are 66 branch offices around the world including London, Portland, Toronto, Tokyo, Australia, Taiwan, Spain, India and many more.
- Digital PresenceDigital Presence Adidas has invested heavily in ads, including on social media as well as ecommerce platforms like Instagram and mobile apps. They were able to generate revenues of 3.9 billion euros in 2021 on the an e-commerce platform, and is expected to double its sales by 2023.
- Collaborations with famous people and partnerships with companiesto increase revenue, Adidas advertisement has been made with the help of Muhammad Ali and his daughter Laila Ali, presenting the brand as a sports one.
The company has worked with local businesses to offer many markets.
- A company that is environmentally friendly– Adidas uses the same material for the production of shoes that can be reused andcycled. This is a way of helping save the natural environment.
- A wide range of itemsWide range of products Adidas does not just sell sportswear, but also offers street-style clothing shoes, footwear, hardware as well as other sports-related items.
- Revenue made from Adidas by 2024The percentage of sales that was earned from Adidas in the first quarter of the year 2024 amounts to $37.05 billion. The bulk of the money earned is from the shoes the company sells i.e. 53% of apparel, 41% of accessories as well as accessories, gears and other items at 6 percentage.
- PopularThis firm is extremely popular with children.
Weakness
- Review for its goodsSometimes, the customers’ experiences with its product not as they had hoped for. This can lead them to leave negative reviews.
- High-reliability on footwearHigh reliability on footwear Adidas revenue is high-quality and reliable in its shoes sales. Therefore, the company must promote its other products, in order that if there is a decline in the demand for footwear it has other products to count on.
- Prices are high for productsCostly products Adidas products are expensive contrasted to local-sourced products. Their prices are high as they need to keep the standard and also the tax that is imposed through the global government for their merchandise. Therefore, they must figure out how to get into the market, while keeping their quality and offering their product at price that is within the budget of their customers.
- Legal disputesThe company is required to defend its patent and has an enormous amount of debt.
Opportunity
- Utilizing materials which can be recycled– Adidas today is making use of materials which can be recycled. This idea has been an enormous contribution to conserving the environmental.
- E-commerce and aggressive advertisingAdverse advertising has led to a huge growth in sales for the product of the company.
Threats
- CompetitorsThe principal rivals for Adidas comprise Nike, Lululemon Athletica Inc, puma and many others.
- Losing Market Share in ChinaThe Chinese market for HTML0 is declining. Adidas has lost market share share in China. In the last year, the company was able to lose around 9.7 percent of Chinese market.
- Changes in the market Changes in the exchange rate could affect the earnings of the business.
- Changes in preference and tasteThe change in taste and preferences will have an impact on the business.
So, swot analysis is extremely beneficial to any business. Large companies such as Adidas, Pepsi, and many more are doing SWOT analysis with great detail. In the coming years, Adidas is likely to reach its aim of becoming the top business worldwide.
