Adidas SWOT and PESTLE Analysis

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Adidas SWOT Analysis

You will come across the terms SWOT and PESTLE analysis in your academic career. It is essential to understand why companies follow these processes. Adidas is a famous company and has made a name for itself in the sports shoe segment. The company still follows this process to be ahead of its competition. It is essential to understand the essence of this process and how Adidas have used it.

Adidas SWOT and PESTLE Analysis: A Background

Adidas PESTLE analysis will not give you the knowledge about the formation of the company. The company was formed after the Dasler brothers split their shoe business. The company and its rival PUMA was formed due to the political tension between the brothers. Adidas is best known for making sports shoes and aims to make everyone healthy and happy. They are aiming to accomplish their mission with a "Creating the new" strategy. The company aims to be the best sports company and the best sports brand in the world. They are present in 55 countries and have more than 800 independent factories around the world. Being the most popular brand, the company has never stopped looking into its strengths and weaknesses and the different factors that might affect the company. Adidas SWOT analysis has pointed out their pricing to be a weakness. They target the urban audience, and their products are priced higher compared to the competitors. Adidas PESTLE analysis is essential to understand the different factors that might affect the company when it expands to other regions.   

The following sections will help you understand the features of the SWOT and PESTLE analysis of Adidas one by one, starting with the PESTLE analysis of Adidas.

Adidas PESTLE Analysis

As mentioned earlier, Adidas is a global brand with a presence in more than 55 countries. It is essential to understand how Adidas PESTEL analysis works to learn more about the company. It is essential to analyse the political, economic, social, technological, legal and environmental elements before stepping into a new market. Adidas belongs to the sports industry, which has seen an increase in mediocre disposable income for the middle class and an urge to be fit and healthy. It can be an opportunity for Adidas. They could use such opportunities to gain market share and reach out to more people around the world. But, for a company as big as Adidas, the legal, political, social, and other factors need to be in place for such promotions. The importance of PESTLE analysis of Adidas can be felt when you look into such aspects.

SWOT analysis of Adidas is again an essential process for the company. You cannot ignore going through this process even if you have succeeded in life. The following section will take you through the elements Adidas considers while doing the SWOT analysis. 

Adidas SWOT Analysis

It is essential to assess the company's strengths, weakness, opportunities and threat from time to time. There are a lot of things this company considers while doing the SWOT analysis. The following points will help you learn about Adidas SWOT analysis.

Strengths

The company has a strong reputation and is considered to be one of the most trusted brands globally. So, while you do a SWOT analysis for Adidas, you need to consider these points:

  • Brand value
  • Legacy
  • New products innovation
  • Influence on the young generation
  • Effective supply chain management

These points are the strengths of this company. If you do thorough research, you will see that the young generation prefers Adidas over the other sports brands. So, if they have the support of customers, they are supposed to be invincible and must not have any weaknesses. But, every company has some weakness, and big companies are well aware of them and assess them before formulating strategies.

Weaknesses

Even after having a strong legacy and a good customer base, Adidas has some alarming weaknesses. The company takes these points into account and always try to improve on them. Their main weaknesses include:

  • Supply-chain shortage
  • Expensive products
  • Limited product line

The company is trying to overcome these shortfalls to impress its customers. The sales depend on the prices. The young generation is very fond of Adidas shoes but often find it hard to buy them due to the prices. Also, their supply chain is not strong enough and is unable to keep a consistency with it. You need to know these things before doing the SWOT analysis on Adidas.

Opportunities

Any business organisation needs to find the right opportunities and avail themselves to overcome their weaknesses and gain market share. While doing a SWOT analysis on Adidas, you will come across the opportunities like:

  • E-commerce
  • Growing sportswear industry
  • Investing in smart materials
  • Culture of yoga pants
  • Diversifying into sporting equipment's
  • Global expansion
  • Product development in space
  • Shoe subscription

The company can look into these opportunities to expand its market. Online businesses are booming, and one must look into it as an opportunity. All other points are important while showcasing the possibilities of Adidas.

Threats

It does not matter how big your company is if you cannot foresee the threats. The SWOT analysis of Adidas is an example of why predicting threats is essential. The company is always looking into overcoming threats to run its business smoothly. Their main threats include:

  • Rapid expansion and adoption of e-commerce
  • Supplier dominancy
  • Technological advancements
  • US-China trade tensions
  • Exchange rates
  • Fake products

These are the main threats faced by Adidas. The company understands and works upon them to maintain its brand value and market share.

The SWOT analysis of Adidas must have these points. It will highlight the importance of each element. If you are working on a project on Adidas, you will find these points useful. Adding them will impress your instructor. 

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Frequently Asked Questions about "Adidas Case Study"

Q. What is Adidas case study help?

Ans: Knowing about big companies is essential for an academic. The assignment writing services provide support to students who face problems with such tasks. They can get the necessary Adidas case study help and get over the work quickly.

Q. How can I practice SWOT analysis and PESTLE analysis?

Ans: You need to know things and keep yourself updated with the changes happening across the world. You can practise SWOT and PESTLE analysis by studying different companies and finding out the different elements that affected their businesses.

Q. How do you do a SWOT analysis?

Ans: Finding out the four main elements, strength, weakness, opportunities, and threat, will help you do a SWOT analysis. You need to gather the proper knowledge to do it.

Q. Which is better, SWOT or PESTLE?

Ans: You cannot compare these two. Both are equally important and is significant for any company.

Q. Why is SWOT analysis difficult?

Ans: You need to do a lot of research while doing a SWOT analysis. The companies do not share their strengths and weaknesses. You need to have strong analytical skills to do a SWOT analysis.

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