Your Business Will Benefit from a SWOT Analysis

Adidas is a sportswear manufacturer that was first founded by Adolf Dassler. Starting from a small company repairing boots and shoes of people, Adidas has come a long way over the decades and is currently one of the largest global sportswear manufacturer with developing various products like sports shoes, kits and jackets, footballs, sports equipments and others. For analysing the internal operations of the organisation, a Adidas SWOT analysis has been conducted as follows.

Strengths – The main strength of Adidas is its strong brand value that helps it maintain a strong market share globally. In addition, a strong global distribution network allows Adidas to maintain a steady and sustainable flow of business throughout the world.

Weaknesses – The main weakness of Adidas is that all its manufacturing department is outsourced to local Asian markets where labour and thus production costs are very cheap. As a result, Adidas has no control over the quality standards of the products and often, faulty or poor quality products are sold in the market.

Opportunities – Sportswear industry is constantly growing and it is a great deal of opportunity for Adidas to develop new innovative products as per the trends in the market. More endorsement deals with sports clubs, celebrities and other large sports entities can allow the company to grow beyond its current limits.

Threats – The main threat of Adidas is the market competition due to the presence of various other global brands like Nike, Puma, New Balance and others. Moreover, counterfeits are prevalent in market due to the high price of the Adidas products as the customers seek less expensive products.

Overall, Adidas is a very popular global brand in sportswear industry but at the same time, other brands like Nike and Puma share considerable share of the market with Adidas. As a result, Adidas never enjoys absolute dominance in the market and the lack of innovation at the company often allows other brands to go ahead in competition in the market.