Focus on product and design innovation: Adidas has focused on product and design innovation.
Nike strengths and weaknesses
Limitation of Weighted SWOT analysis of adidas This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically. One of the reason why the days inventory is high compare to its competitors is that adidas is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel. Alongside Nike and several others, Adidas is one of the premium sportswear brands recognized in every corner of the globe. Moreover currency fluctuations and a stronger dollar too threaten profits. Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. As the company is operating in numerous countries it is exposed to currency fluctuations especially given the volatile political climate in number of markets across the world. It has focused on building long term and strong supplier relationships and still over dependence on them can be dangerous. By continually investing in the development and manufacture of new materials that can be used in sportswear, Adidas may be able to offer a superior product to its competitors. Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for adidas to capture new customers and increase its market share. Aside from physical sales, Adidas also has an established eCommerce presence. Stable free cash flow provides opportunities to invest in adjacent product segments. Expanding in the emerging markets: Adidas is doing well in greater China; it must also focus on India and other emerging markets for sharper growth.
Strong Free Cash Flow — adidas has strong free cash flows that provide resources in the hand of the company to expand into new projects. The brand would have to continue to focus on its marketing and product innovation to stay competitive.
It has come across as a mature firm looking forward to bring out products based on tested features in the market. Adidas is the second most valued sports brand in the world Rinky, Read on….
Adidas indirect competitors
Its products are available worldwide through channels such as franchises, mass merchandise, and speciality stores. Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. This means there will be a consistent increase in the number of people practicing sport and thus needing appropriate sportswear. However, if Adidas were to have a fallout with one of its overseas suppliers, the risk of a huge influx of counterfeit products is an extremely scary prospect. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. However, Adidas does have opportunities for the future in this growing industry — such as smart materials — if it can only survive the competition! Conclusion and recommendations: Overall, was a quite successful year for Adidas and opened on a strong and favorable note. Opportunities for Adidas Adidas saw double-digit sales increases in China and North America by the end of Thomasson, Adidas has a strong financial position. As of March , the company employs 56, people from over countries. Moreover, the athleisure trends bring great opportunities for brands like Adidas. Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments. Threats adidas Facing - External Strategic Factors Increasing trend toward isolationism in the American economy can lead to similar reaction from other government thus negatively impacting the international sales. Threats Competition As with any company, the threat of competition is always present.
High attrition rate in work force — compare to other organizations in the industry adidas has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees.
As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
On a logistical level, the Adidas distribution network ships millions of goods across the globe in reasonable timeframes.
based on 84 review