Adidas case

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Adidas Case

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SWOT ANALYSIS

1- Internal Analysis

| |Strengths |Weaknesses |
|Place/Market shares |One of the 3 leaders in the sporting goods market |The world leader is Nike, Adidas is only second. |
|Growth|worldwide. |In the French running market, it has only 20,2% of |
| |Its worldwide net sales are increasing since 1992. |market shares (42,5% for Nike) |
| |Only a little decrease is observed in 2003, in spite ||
| |of 6.3 billion Euros of net sales. But at the same | |
| |date, an increasing of 14% of net income is observed. | |
| |About Adidas France: ||
| |Sales have grown 70% in 4 years. | |
| |2nd on the running shoes market. | |
|Price |Adidas has lowcosts with the delocalization of 80% of|Products are more expensive than distributor brands. |
| |its products activities in Asia. | |
| |While competitor, Nike, sells high-tech products, it | |
||is also the most expensive. | |
|Product |Products are relatively diversified. |Adidas favors design rather than quality of products. |
|Strategy and communication |Marketing is based on sponsoring and promotion of |It often targetshigh-level athletes. |
| |sport stars: |It has a positioning as a leisure brand and less as, |
| |Presence in major events in 2004: European football |high-tech sport brand. |
| |championships, Olympic summergames in Athens, FIFA | |
| |World Cup... | |
| |Strong partnerships with a lot of stars (Madonna, | |
||Stallone, Zidane…) | |
| |It emphasizes the products’ performance. | |
| |Since 1920s, its communication is based on the strong ||
| |identity too, with three bands logo. | |
| |Strengths |Weaknesses |
|Notoriety and image |Created in the 1920s, it has a long history...
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