Adidas is a leading company of sports footwear, ethnic apparels, accessories and gears. It was founded on 18th august 1949 by Adolf Dassler with its headquarters in Herzogenaurach, Germany. The Torsion Concept launched in 1989. Equipment Concept (1991), Street Campaign (1992) and Predator Football boot launched in (1994) are the most famous concepts launched by Adidas since its inception. Adidas aims with the motto of “Impossible is nothing.” taken from the quote given by Muhammad Ali, the world-famous champion. This motto gave a very powerful message to the people that there is no such thing as impossible and everything is possible to do
Adidas logo The three striped logo is very eye-catching and it expresses its style and quality of the product. The main aim of this company is to become the number one company in the world. Adidas, has increased its sales from the last few years. In the year 2004, the company sold 5458 million euro in its first quarter. This company has launched street wear and has changed the image of sports, fashion, and attitude towards pop culture.
Swot Analysis of company
The model of swot analysis tells about the strength, weakness, opportunities, and Threats. It helps the company to decide in taking the major decisions for its future.
SWOT analysis of Adidas Company
The swot analysis helps the company to overcome its weakness and take positive action towards the opportunity.
Strength
- Ethnic wear– Adidas has launched eye-catching ethnic wear specially for women which is making many people to purchase their latest fashion apparels. Thus, increasing its sales.
- Goodwill -Adidas is enjoying good goodwill in the market for its high-quality products and latest and cutting-edge designs. Buying the product of this company makes the people feel as if they have purchased a product of very high quality, especially the Adidas footwear.
- Global reach– this company is spread worldwide. It has 66 branches worldwide like in London, Portland, Toronto, Tokyo, Australia, Taiwan, Spain, India, and many others.
- Digital Presence– Adidas have been investing heavily in advertisements, on social media and e- commerce platforms like Instagram, mobile apps offerings. It has been able to make sales of 3.9 billion euro in 2021 through e-commerce platform and expected to double its sales in 2023.
- Collaborations with celebrities and partnership with firms– To increase sales, Adidas advertisement has been launched by Muhammad Ali and his daughter Laila Ali,representing it as a sports brand.
This company has also joined hands with local firms in order to cover a wide range of markets.
- Environment friendly company– Adidas is using the material to manufacture the shoes that can be re- cycled. Thus, helping to save the environment.
- Wide range of products– Adidas not only sells sportswear, but it also sells street fashion clothes, footwear, hardware, and other sports items.
- Revenue earned by Adidas in 2024– The sale % earned by Adidas in the 1st quarter in the year 2024 is $37.05 billion. Most of the income generated has come from footwear it sells i.e. 53% apparel 41% and accessories and gears 6%.
- Popular– This company is very popular amongst youngsters.
Weakness
- Reviews of its products– Sometimes the customer’s experience with its product are not up to their expectations. thus, leading them to give poor reviews.
- High reliability on footwear- Adidas revenue is very highly reliable on its footwear sale. Thus, the company also needs to promote its other products, so that in case of heavy fall in demand for footwear, there are other products to rely on.
- Costly products– Adidas products are costly as compared to local vendor products. Their prices are heavy as they have to maintain the standard as well as the tax levied by the international government on their products. Thus, they have to see how to penetrate into the market by maintaining their standard and also selling the product at the prices which meets the pockets of the customers.
- Legal battles– The company has to fight for the patent battle and also it has a huge amount of debts.
Opportunity
- Using the material that can be recycled– Adidas, these days is using the material that can be recycled. This concept has made a major step towards saving the environment.
- E -commerce and aggressive advertising– Aggressive advertisement has led to high increase in sales of the company’s product.
Threats
- Competitors– The main competitors of Adidas are Nike, Lululemon Athletica Inc, puma and many others.
- Losing Market in China– Adidas is losing market in China. Last year, it lost around 9.7 % of the Chinese market.
- Fluctuations in the market – The change in exchange rate can affect the profit of the company.
- Change in taste and preferences– This change can greatly affect the company.
Thus, the swot analysis is very helpful for every company. The giant companies like Adidas, Pepsi, and many others are now doing SWOT analysis in detail. In the years to come Adidas will be able to achieve its goal of becoming the number one company in the world.
