Developing a SWOT Matrix for Adidas (Marketing Assignment for MBA students)

Developing A SWOT
Matrix For ADIDAS AG
Developing A SWOT
Matrix For ADIDAS AG
Impossible is
nothing
Impossible is
nothing
Histor y
•
A name that stands for powers in all types of sport around the
globe.
•
adidas is registered as a company, named after its founder: 'Adi' from
Adolf and 'Das' from Dassler. The idea was as simple as it was
brilliant.
•
Adi Dassler’s aim was to provide every athlete with the best possible
equipment.
•
It all began in 1920, when Adi Dassler made his first shoes using the
few materials available after the First World War.
Histor y
•
A name that stands for powers in all types of sport around the
globe.
•
adidas is registered as a company, named after its founder: 'Adi' from
Adolf and 'Das' from Dassler. The idea was as simple as it was
brilliant.
•

Adi Dassler’s aim was to provide every athlete with the best possible
equipment.
•
It all began in 1920, when Adi Dassler made his first shoes using the
few materials available after the First World War.
Today
The adidas product range extends
from
Shoes, Apparel and Accessories
For basketball, soccer, fitness and
training to adventure, trail and golf.
Today
The adidas product range extends
from
Shoes, Apparel and Accessories
For basketball, soccer, fitness and
training to adventure, trail and golf.
Logo
The shape formed by the bars
represents a mountain
indicating the challenge to be faced
and
the goals to be achieved
Logo
The shape formed by the bars
represents a mountain
indicating the challenge to be faced
and
the goals to be achieved
For m of

business ownership
•
An international corporation with
shareholders, customers, suppliers,
employees and Executive and Supervisory
Board members from all over the world.
•
The name of the Corporation is adidas-
Salomon AG It is a listed Company (Listed
in Deutsche Börse stock market)
For m of
business ownership
•
An international corporation with
shareholders, customers, suppliers,
employees and Executive and Supervisory
Board members from all over the world.
•
The name of the Corporation is adidas-
Salomon AG It is a listed Company (Listed
in Deutsche Börse stock market)
•
adidas Spor t Perfor mance
•
-Professional sportswear, equipment
•
-Functional and innovative products
•
Basketball
•

Football
•
Golf
•
Running
•
Tennis
•
Cycling
•
Accessory (watch, sunglasses)
Products
•
adidas Spor t Perfor mance
•
-Professional sportswear, equipment
•
-Functional and innovative products
•
Basketball
•
Football
•
Golf
•
Running
•
Tennis
•
Cycling

•
Accessory (watch, sunglasses)
Products
•
adidas Originals
•
Casual wear
•
Perfect fusion of sport authenticity and global street style
•
shoes
•
apparel
•
bags
•
adidas Originals
•
Casual wear
•
Perfect fusion of sport authenticity and global street style
•
shoes
•
apparel
•
bags
•
adidas Spor ts Style
•

Fashionable, stylish
•
Men
•
Women
•
Accessories
•
Footwear
•
adidas Spor ts Style
•
Fashionable, stylish
•
Men
•
Women
•
Accessories
•
Footwear
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
1. Global leader in sportswear industry:
worldwide recognized brand, strong
reputation and sustainable business.
2. Strong advertising and public relation events
3. Strong worldwide distribution network
4. Strong workforce and capital.

5. Diversified and innovated sport products in
sportswear segment
6. Possess brand name: Reebok and Salmon
which were the biggest competitor of Adidas
1. The prices of products are high
2. Outsourcing manufacturing causing
compromises in product/service quality due to
lack of necessary resources and competencies.
3. It has been serving limited segment
4. Cost structure of company is high
5. Web booking of Adidas is very limited: only in
USA and EU.
6. Failure to narrow the market share gap with
NIKE causing Adidas investors lose
confidence on Adidas Management
OPPORTUNITIES THREATS
1. 2014 FIFA World Cup™ in Brazil will be held
in this June
2. Fitness and Healthy awareness among
consumers are increasing more and more.
3. Expand the market of women and children
4. Explore more market in developing countries.
5. Merger and acquisitions trends are increasing
to gain competency.
1. Risk of fake product on design and low quality
in lower price from small manufacturers.
2. Technology is copied to produce low price
products with same quality.
3. Negative exchange rate variances in emerging
markets such as Russia and Argentina.

4. Increasing labor cost in cost of sales
5. Nike is gaining market share from Adidas in
Europe.
SWOT ANALYSIS
STRENGTHS
WEAKNESSES
1. Global leader in sportswear industry:
worldwide recognized brand, strong
reputation and sustainable business.
2. Strong advertising and public relation events
3. Strong worldwide distribution network
4. Strong workforce and capital.
5. Diversified and innovated sport products in
sportswear segment
6. Possess brand name: Reebok and Salmon
which were the biggest competitor of Adidas
1. The prices of products are high
2. Outsourcing manufacturing causing
compromises in product/service quality due to
lack of necessary resources and competencies.
3. It has been serving limited segment
4. Cost structure of company is high
5. Web booking of Adidas is very limited: only in
USA and EU.
6. Failure to narrow the market share gap with
NIKE causing Adidas investors lose
confidence on Adidas Management
OPPORTUNITIES THREATS
1. 2014 FIFA World Cup™ in Brazil will be held
in this June

2. Fitness and Healthy awareness among
consumers are increasing more and more.
3. Expand the market of women and children
4. Explore more market in developing countries.
5. Merger and acquisitions trends are increasing
to gain competency.
1. Risk of fake product on design and low quality
in lower price from small manufacturers.
2. Technology is copied to produce low price
products with same quality.
3. Negative exchange rate variances in emerging
markets such as Russia and Argentina.
4. Increasing labor cost in cost of sales
5. Nike is gaining market share from Adidas in
Europe.
SWOT MATRIX
Opportunities
Strengths
1. Global leader in sportswear industry: worldwide recognized
brand, strong reputation and sustainable business.
2. Strong advertising and public relation events
3. Strong worldwide distribution network
4. Strong workforce and capital.
5. Diversified and innovated sport products in sportswear
segment
6. Possess brand name: Reebok and Salmon which were the
biggest competitor of Adidas
7. The sponsor of the 2014 FIFA World Cup™ in Brazil
SO Strategies
Weaknesses

1. The prices of products are high
2. Outsourcing manufacturing causing
compromises in product/service quality due
to lack of resources and competencies.
3. It has been serving limited segment
4. Cost structure of company is high
5. Web booking of Adidas is very limited: only
in USA and EU.
6. Failure to narrow the market share gap with
NIKE causing Adidas investors lose
confidence on Adidas Management
WO Strategies
1. 2014 FIFA World Cup™ in Brazil will be held in
this June
2. Fitness and Healthy awareness among
consumers are increasing more and more.
3. Expand the market of women and children
4. Explore more market in developing countries.
5. Merger and acquisitions trends are increasing
to gain competency.
6. New trend of e-commerce.
Threats
1. Use brand and reputation to bid for sponsor of worldwide
sport events (S1, S2, O1).
2. Capture new trend by doing marketing to increase
awareness (S2, O2).
3. Product diversification and innovation for new users (S5,
O3).
4. Utilize worldwide distribution network to penetrate new
market (S3, O4)

5. Use strength of capital and reputation to acquire other
firms to diversify product and reduce competition (S4, O4)
ST Strategies
1. Add more values to product to reduce price
sensitivity (W1, O1).
2. Acquire other firms to diversify product to
other segments (W3, O5).
3. Build up a strong e-commerce to catch up
new trend (W5, O6).
WT Strategies
1. Risk of fake product on design and low
quality in lower price from small
manufacturers.
2. Technology is copied to produce low price
products with same quality.
3. Negative exchange rate variances in emerging
markets such as Russia and Argentina.
4. Increasing labor cost in cost of sales
5. Nike is gaining market share from Adidas in
Europe.
1. Focus on quality, new design and innovation to differentiate
from low price competitors (S5, T1)
2. Using marketing capability to add more values to products
(S1, S2, T2).
3. Experience and skillful staffs can help reduce the effects of
international currency issue (S4, T3)
4. Use its power to work with manufacturers for new
manufacturing places with lower cost (S1,T4)
5. Bid for sponsor of EU sport events to gain awareness and
market share (S1, S2, T5)

6. Acquire EU firms to fight with Nike (S6, T5)
1. Offer regular selling promotion to approach
low income consumers (W1, T1,T2).
2. Concentrate production to several vendors
for more effective supervision and control
both in cost and quality ((W2, T4).
3. Strong action to fight with Nike to gain the
market share and the confidence of
shareholders (W6, T5)
SWOT MATRIX
Opportunities
Strengths
1. Global leader in sportswear industry: worldwide recognized
brand, strong reputation and sustainable business.
2. Strong advertising and public relation events
3. Strong worldwide distribution network
4. Strong workforce and capital.
5. Diversified and innovated sport products in sportswear
segment
6. Possess brand name: Reebok and Salmon which were the
biggest competitor of Adidas
7. The sponsor of the 2014 FIFA World Cup™ in Brazil
SO Strategies
Weaknesses
1. The prices of products are high
2. Outsourcing manufacturing causing
compromises in product/service quality due
to lack of resources and competencies.
3. It has been serving limited segment
4. Cost structure of company is high

5. Web booking of Adidas is very limited: only
in USA and EU.
6. Failure to narrow the market share gap with
NIKE causing Adidas investors lose
confidence on Adidas Management
WO Strategies
1. 2014 FIFA World Cup™ in Brazil will be held in
this June
2. Fitness and Healthy awareness among
consumers are increasing more and more.
3. Expand the market of women and children
4. Explore more market in developing countries.
5. Merger and acquisitions trends are increasing
to gain competency.
6. New trend of e-commerce.
Threats
1. Use brand and reputation to bid for sponsor of worldwide
sport events (S1, S2, O1).
2. Capture new trend by doing marketing to increase
awareness (S2, O2).
3. Product diversification and innovation for new users (S5,
O3).
4. Utilize worldwide distribution network to penetrate new
market (S3, O4)
5. Use strength of capital and reputation to acquire other
firms to diversify product and reduce competition (S4, O4)
ST Strategies
1. Add more values to product to reduce price
sensitivity (W1, O1).
2. Acquire other firms to diversify product to

other segments (W3, O5).
3. Build up a strong e-commerce to catch up
new trend (W5, O6).
WT Strategies
1. Risk of fake product on design and low
quality in lower price from small
manufacturers.
2. Technology is copied to produce low price
products with same quality.
3. Negative exchange rate variances in emerging
markets such as Russia and Argentina.
4. Increasing labor cost in cost of sales
5. Nike is gaining market share from Adidas in
Europe.
1. Focus on quality, new design and innovation to differentiate
from low price competitors (S5, T1)
2. Using marketing capability to add more values to products
(S1, S2, T2).
3. Experience and skillful staffs can help reduce the effects of
international currency issue (S4, T3)
4. Use its power to work with manufacturers for new
manufacturing places with lower cost (S1,T4)
5. Bid for sponsor of EU sport events to gain awareness and
market share (S1, S2, T5)
6. Acquire EU firms to fight with Nike (S6, T5)
1. Offer regular selling promotion to approach
low income consumers (W1, T1,T2).
2. Concentrate production to several vendors
for more effective supervision and control
both in cost and quality ((W2, T4).

3. Strong action to fight with Nike to gain the
market share and the confidence of
shareholders (W6, T5)
THANK YOU !
THANK YOU !