The role of SWOT analysis in identifying Adidas’ key success factors.
Adidas’ SWOT analysis examines the company’s advantages, disadvantages, opportunities, and threats. Strengths and weaknesses are internal factors in the Adidas SWOT analysis, whereas opportunities and threats are external factors.
SWOT Analysis is a tried-and-true management framework that allows a company like Adidas to compare its operations and performance to those of its rivals. One of the top brands in the retail and lifestyle industries is Adidas.
Here is the SWOT ANALYSIS of Adidas that can assist the brand in concentrating on leveraging its advantages and opportunities while addressing its threats and weaknesses to strengthen its position in the market.
One of the top organizations in its sector is Adidas. Adidas carefully examines and reviews the SWOT analysis to maintain its position in the market. SWOT analysis is a highly interactive process that calls for efficient communication between numerous corporate divisions, including marketing, finance, operations, management information systems, and strategic planning.
A company can more easily identify internal strategic factors, such as strengths and weaknesses, and external strategic factors, such as opportunities and threats, by using the SWOT Analysis framework. It results in a 2X2 matrix, also referred to as a SWOT matrix.
The managers of Adidas are able to create four different types of strategies thanks to the SWOT Analysis/Matrix:
Adidas Strengths
The key elements of Adidas’ business that give it a competitive edge in the market are examined in the company’s strengths. So, the strength of a brand can be attributed to a variety of things. Such as its financial standing, skilled workforce, the distinctiveness of its products, and intangible assets like brand value. The following are Adidas’s strong suit in the SWOT analysis:
1. Since 1924, the Adidas Company had a rich history and a strong brand value.
2. Adidas supports professional athletes, teams, and major sporting events, such as the Olympics.
3. The business is well-known internationally and has a global presence.
4. Lastly, they offers a very diverse range of products, from athletic footwear and equipment to apparel and accessories.
Adidas’s Weakness
A brand’s weaknesses are specific areas of its business that can be improved to strengthen its position. Some flaws can be described as qualities that the business lacks or in which the competition excels. The Adidas SWOT Analysis has the following weaknesses:
1. Adidas products occasionally have a high price tag because of innovative production techniques or technology
2. Customers have a high brand switching rate due to fierce competition and similar big brands.
Adidas Opportunities
Any brand has the potential to improve in certain areas in order to grow its customer base. Opportunities for a brand can include geographic expansion, product enhancements, improved communication, etc. The opportunities identified by SWOT analysis are as follows:
1. Firstly, Adidas creates close to 60 new foot-friendly designs annually to keep up with the competition.
2. The business can try producing more fashionable designs and cuts.
3. Collaboration with emerging international sports teams, clubs, and athletes can strengthen Adidas’s brand recognition.
4. Lastly, Establishing sponsored sports academies to build brand awareness
Adidas Threats
Any business may face threats in the form of elements that could harm its operations. Threats can come from a variety of factors, including increased competitor activity, shifting governmental priorities, alternative goods or services, etc. The following are the threats identified in SWOT analysis:
1. Firstly, Additional brands are providing more styles and options, increasing competition
2. Secondly, The threat of competing brands that offer more affordable sports gear and accessories
3. Adidas’ brand image is harmed by counterfeit or stolen goods
4. Local brands increase Adidas’ competition in each country.
Summary
Corporate managers made the decision to give weight to each internal strength and weakness of the company in light of the descriptions of the SWOT analysis / matrix that were previously mentioned. Organizations also evaluate the likelihood of future events and their potential impact on their performance.
The weighted swot analysis is part of the Adidas case study help. Weighted SWOT Analysis enables Adidas managers to concentrate on the most important factors and disregard the less significant ones, making it preferable to perform a simple SWOT analysis. Additionally, it eliminates the long list issue, which occurs when organizations create a long list but none of the factors is deemed crucial.
Author bio:
Mia ryan is an educator and a member of the student counselling committee of a private institute in Australia. She has been associated with MyAssignmenthelp.com for the past few years to help students in all possible ways.
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