Industry: Apparel, Accessories
Revenue: €16,915 million – FY ending December 2015
SWOT Analysis:
The SWOT analysis for Adidas is presented below:
Strengths Weakness
1. Healthy Financials
2. Constant Innovation and New Products
3. Effective Point-of-Sale Network
4. Strong Presence in European Market 1. Foreign Exchange and Market Risk
2. Impact on Business due to Competitors Actions
3. Limited Finance
Opportunities Threats
1. Rise in Health and Fitness Trend
2. Growth Opportunities in Asia 1. Highly Dependant …show more content…
In May 2016, Adidas had announced its intention to sell its golf business and Nike too decided to stop selling golf equipment, later in the year. Nike Inc.’s decision to stop selling golf equipment could weigh on the German company’s sale of its own golf division, especially if they put it up for sale. If Nike puts that business for sale, that will create a larger buyers’ market and dilute the potential price Adidas can get for its own golf …show more content…
China, in particular, will be a key market to monitor. The chinese government has emphasized support for youth athletic participation, development of sports infrastructure and business, with plans to build 60% more sports facilities by 2025 and get 500 million of its citizens to exercise and play sports regularly. The government wants to integrate soccer into primary and high school curriculums to develop future talent. Sports pastimes, such as skiing and hiking, which a generation ago were unheard of, have become common and easily accessible. People who enjoy such activities also tend to have the means to buy the clothes and gear that go with them.
Threats
1) Highly Dependant on Sports: The sporting goods industry is highly dependant on sports. If one sport becomes popular and the Company sells equipment for it, the revenues will automatically rise. However if the Company produces shoes and equipment for a sport that loses popularity, then it will incur heavy losses. Adidas has to constantly monitor the market for popularity of sports and big events like the Olympics, to ensure higher sales.
2) Intense Competition: Adidas faces intense competition from the top 5 players in the sporting goods segment, along with any new entrants in the market. The business is based on innovation and new technology,