Adidas Case Study
Case: Adidas
Current Situation * In 2008, Adidas achieved a number of significant strategic goals. However, it has lost market share in the athletic footwear market to Nike through the first nine months of the year. * Adidas has a strategy that´s focused on extending its leadership in product innovation, creating a differentiated image for the products offered by each of its three business segments.
Corportate Governance
External Environment
PEST
Political * Multinational * Awareness of cultures * Good legal Image * Environment-concern * Quality regulations followed
Economic
* Customers less willing to pay for high priced items * Crash of the economy
Social
* Always knowing what the younger generation prefers
Technological
* Technology innovation is the key factor in the industry
Porter’s Five Forces Threat of Substitute Products (LOW) * The brand´s strength as we wrote earlier is product innovation and meeting customer expectations. This is hard to copy. Threat of New Entrants (LOW) * Huge barriers required for new entrants. * Strong presence of established brands * Customer´s loyalty Bargaining Power of Buyers (HIGH) * The buyers are now more conscious of their spending * Access to internet and other brands webpages Bargaining Power of Suppliers ( LOW) * The enterprises that give us the service are very dependent on adidas * Multiple sources of industry fabricants * Easy to switch of supplier Competitive Rivalry (HIGH) * Their direct competitors have all global reach. * Remaining as the leader is expensive. * The competitors have made recent acquisitions in the industry
Analysis and Matrixes SWOT
TWOS
Financial Analysis
Adidas is strong in several developing markets (Eastern Europe, Asia).
The integration of Adidas and Reebok supply chain activities was expected to result in cost savings of 105 million of
Current Situation * In 2008, Adidas achieved a number of significant strategic goals. However, it has lost market share in the athletic footwear market to Nike through the first nine months of the year. * Adidas has a strategy that´s focused on extending its leadership in product innovation, creating a differentiated image for the products offered by each of its three business segments.
Corportate Governance
External Environment
PEST
Political * Multinational * Awareness of cultures * Good legal Image * Environment-concern * Quality regulations followed
Economic
* Customers less willing to pay for high priced items * Crash of the economy
Social
* Always knowing what the younger generation prefers
Technological
* Technology innovation is the key factor in the industry
Porter’s Five Forces Threat of Substitute Products (LOW) * The brand´s strength as we wrote earlier is product innovation and meeting customer expectations. This is hard to copy. Threat of New Entrants (LOW) * Huge barriers required for new entrants. * Strong presence of established brands * Customer´s loyalty Bargaining Power of Buyers (HIGH) * The buyers are now more conscious of their spending * Access to internet and other brands webpages Bargaining Power of Suppliers ( LOW) * The enterprises that give us the service are very dependent on adidas * Multiple sources of industry fabricants * Easy to switch of supplier Competitive Rivalry (HIGH) * Their direct competitors have all global reach. * Remaining as the leader is expensive. * The competitors have made recent acquisitions in the industry
Analysis and Matrixes SWOT
TWOS
Financial Analysis
Adidas is strong in several developing markets (Eastern Europe, Asia).
The integration of Adidas and Reebok supply chain activities was expected to result in cost savings of 105 million of