The Competitive rivalry for Adidas in the retail industry is High as there are alot of competitor such as Nike, New Balance , Puma, Reebok and Under Armor. As company such as Nike have been challenging Adidas and are growing very fast with the products they come out with as they are also one of the popular brand for people that get their soccer boots or the Football team jersey they support that the brand sell as Adidas is a sponsor for the Football team. And all this year other sports brand has also been trying to compete with Adidas but are not as strong as Adidas because Adidas is a well known sport brand to alot of people and is also one of the choice people choose other than Nike.
3.2 Threat of …show more content…
However to make the sports equipment they must be able to find supplier to buy the things they need such as rubber for the shoe and cotton also. It’s easy for Adidas to change Supplier due to the big organization they have and those Supplier charging them very high when Adidas are taking the products from them as Adidas can find a much cheaper Supplier to provide them the items they need to make the equipment. Supplier that are supplying the items to Adidas might want to sign a long contract with them due to the stuffs that Adidas need to make the equipment so they can also earn profits in long term.
3.5 Bargaining power of Customers
The Bargaining power of Customers is High for Adidas as customer will have very high demand for the products that they buy and the quality of the products due to the prices of the things that Adidas is selling and customers could also go and buy from other retail sports industry that is selling the same products like Nike if they do not like the things that Adidas is selling. Some may also find a substitutes to buy some other brand that are not related to sports.
4.Four Strategic …show more content…
Therefore Adidas should help the citizen of China by expanding their factory and hiring more people so there wont be that much people who are jobless in China cause of Adidas deciding to go to other low cost country to produce their products.
4.3
As the threat of substitute is High for Adidas they should expand their network to have more things such as doing their well known sport retail they can should find a solution to create things that are not related to the sport industry and do other type of retail stuff like normal shirts and sell it cheaper, for people to buy as they are not known for the things that are not related to sports to increase the competition in the retail industry.
4.4
Adidas can look into the China technology to bring in more advance technology into China, as China technology is not so good now they might want to help them to invent more machines to help create products that the country have never done before, in order for the country to challenge other better countries in technology as the competition is very high around the globe