Adidas SWOT and PESTLE Analysis
ID : 5297953| Jul 2023| 21 pages
COMPANY PROFILE -Adidas
Business Sector :Sports Goods
Operating Geography :Europe, Germany, Global
About Adidas :
Adidas, founded in 1924, by Adi Dassler, is a German multinational company, specializing in clothing, sports shoes and accessories. The company is headquartered in Herzogenaurach, Bavaria and has over 59,000 employees globally as of early 2020. Adidas was born after the split of the Dasler brother shoe factory, a political tension between the two brothers led to formation of two companies Adidas and Puma in the year 1947. Adidas is a brand that operates in one of the most attractive industry- sports, as it is one of the core aspects of society and harnessing sports in every individual will make their lives healthy and happy. This German sportswear manufacturer is deemed industry best in seven criteria namely, Innovation Management, Materiality, Supply Chain Management, Human Rights, Environmental Policy and Management Systems, Operational Eco-Efficiency and Social Reporting. As of early 2023, Adidas employed over 62,000 people.
The Unique Selling Proposition or USP of Adidas lies in being globally recognized and renowned apparel manufacturer of sporting goods, shoes, clothes and accessories that are appealing to a large group of audiences of varied demographics. Adidas’s mission is “To be the best sports company in the world” and Adidas brand “To be the best sports brand in the world.” Adidas vision statement reads “To enhance social and environmental performance in the company and the supply chain, thereby improving lives of people making our products.”
Adidas Revenue :
€ 21,234million - FY ending 31st December, 2021 (y-o-y growth of 16%)
€ 18,435 million - FY ending 31st December, 2020
Competitive Analysis of Adidas
SWOT
PESTLE
The SWOT analysis for Adidas is presented below in a Matrix followed by detailed analysis:
| 1. Consistently strong financials over a decade 2. Constant Innovation and New Products 3. Effective Point-of-Sale Network 4. Strong and efficient distribution network 5. Strong footwear sourcing of Adidas | 1. Impact on business due to competitors’ actions 2. Highly dependent on sourcing from few Asian countries |
| 1. Rise in Health and Fitness Trend 2. Growth Opportunities in Asia 3. E-commerce to be a major growth driver | 1. Highly dependent on sports segment 2. Intense competition in sports and apparel segment |
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Detailed SWOT Analysis of Adidas
Strength
1. Consistently strong financials over a decade: The revenues and gross profit of the Company have consistently increased over the last ten years (2012-2021) from €14.8 billion to €21.23 billion, with no dips and only ascents (excluding the pandemic year, i.e., 2020). The equity ratio has been consistent, which shows that the investors have faith in the Company. Operating margins have also climbed from 5.3% in 2012 to 9.4% in 2021. The interest coverage ratio shows that the company risk is low and the operations are producing enough cash. The gross margin of this year was 50.7% which indicates high profitability of the company.
2. Development of new products and solutions through continuous innovation: The adidas brand has developed a truly unique and comprehensive sports offering, driven by a relentless pursuit of innovation and decades of accumulating sports science expertise. Adidas' innovation approach is heavily based on its Open-Source mindset, in keeping with its vision of creative collaboration. The Adizero Adios Pro made its debut in 2020 and quickly became a hit with road runners. They've broken seven world records with the shoe since its release, including two during their 'Road to Records' event in 2021 on their own Herzogenaurach company campus. Two layers of resculpted Lightstrike Pro midsole and the iconic carbon-infused Energy Rods are featured in the Adizero Adios Pro 2 for 2021. The upper is made of ultra-lightweight, partially recycled polyester. Adidas is accelerating sustainable innovation in the apparel industry with Fashion for Good, a global cross-brand initiative to make all fashion sustainable.
The remaining section under "Strength" is only available in the "Complete Report" on purchase.Weakness
This section is available only in the 'Complete Report' on purchase.Opportunity
This section is available only in the 'Complete Report' on purchase.Threat
This section is available only in the 'Complete Report' on purchase.Major Competitors :
Major Brands :
- Adidas Originals
- Adidas Neo
- Reebok
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SWOT & PESTLE (combined)
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On purchase the Adidas SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
WHY BUY THIS REPORT?
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
1. Adidas SWOT and PESTLE analysis report presents an understanding of the powerful internal and external factors influencing the brand and its operations.
2. The SWOT analysis report constitutes all the internal strategic factors that represent the major strengths and weaknesses of the Adidas Group.
3. The report confers intelligence on the external analysis, comprising the opportunities which can be incorporated to achieve worldwide growth and expansion. It also talks about some pertinent threats to the Adidas company that threatens to impede growth.
4. The report highlights the core competencies of Adidas and factors that help attain competitive advantage for the company over its rivals and competitors from the sporting goods industry.
5. Pestle analysis of the footwear and apparel industry gives a detailed picture of the external factors and its influences on the industry and largely on Adidas.
6. A detailed interpretation of how influencers like political, economic, social, technological, legal and environmental factors have impacted Adidas' innovative business model.
7. Insights into Adidas's business diversification, extracting its key business segments and highlighting its significant competitors
8. Analysis of the acquisitions, mergers, capital raising, equity transactions, alliances or partnership ventures that Adidas consented along with deal valuations and the business aspirations or aims that were accomplished by them.
9. Insights into Adidas’s business model, along with further breakdown and analysis of key business segments and business case study
10. A brief overview of Adidas founders, its corporate headquarters, owners & stakeholders, and revenue jumps. Additionally overall company analysis to gain acquaintance about company information, company profile, business model, business plans and marketing strategy.
11. Interpretation of Adidas' USP or unique selling proposition, mission statement and vision statement that are a trendsetter in the industry.
12. A glimpse into the Adidas' key performance indicators, success factors, share price, and value proposition
2. The SWOT analysis report constitutes all the internal strategic factors that represent the major strengths and weaknesses of the Adidas Group.
3. The report confers intelligence on the external analysis, comprising the opportunities which can be incorporated to achieve worldwide growth and expansion. It also talks about some pertinent threats to the Adidas company that threatens to impede growth.
4. The report highlights the core competencies of Adidas and factors that help attain competitive advantage for the company over its rivals and competitors from the sporting goods industry.
5. Pestle analysis of the footwear and apparel industry gives a detailed picture of the external factors and its influences on the industry and largely on Adidas.
6. A detailed interpretation of how influencers like political, economic, social, technological, legal and environmental factors have impacted Adidas' innovative business model.
7. Insights into Adidas's business diversification, extracting its key business segments and highlighting its significant competitors
8. Analysis of the acquisitions, mergers, capital raising, equity transactions, alliances or partnership ventures that Adidas consented along with deal valuations and the business aspirations or aims that were accomplished by them.
9. Insights into Adidas’s business model, along with further breakdown and analysis of key business segments and business case study
10. A brief overview of Adidas founders, its corporate headquarters, owners & stakeholders, and revenue jumps. Additionally overall company analysis to gain acquaintance about company information, company profile, business model, business plans and marketing strategy.
11. Interpretation of Adidas' USP or unique selling proposition, mission statement and vision statement that are a trendsetter in the industry.
12. A glimpse into the Adidas' key performance indicators, success factors, share price, and value proposition
You may also be interested in other analyses of Adidas:
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Adidas Porter's Five Forces Analysis -
Adidas VRIO Analysis -
Adidas Value Chain Analysis -
Adidas Covid-19 Impact Analysis -
Adidas BCG Analysis -
Adidas Segmentation, Targeting and Positioning (STP) Analysis -
Adidas Ansoff Matrix Analysis
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References used in Adidas SWOT & PESTLE Analysis Report
1. Website - https://www.adidas.co.in/
2. Annual Report - https://report.adidas-group.com/2021/en/servicepages/downloads.html
3. Newsroom - https://www.adidas-group.com/en/media/news-archive/
4. Global Sports Apparel Market Report 2022-2026: Increase in Gen Z Income & Penetration of E-Commerce Fueling Growth - ResearchAndMarkets.com - https://www.businesswire.com/news/home/20220721005543/en/Global-Sports-Apparel-Market-Report-2022-2026-Increase-in-Gen-Z-Income-Penetration-of-E-Commerce-Fueling-Growth---ResearchAndMarkets.com
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Adidas SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.
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Adidas SWOT and PESTLE Analysis
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