Adidas is a multinational corporation that offers a wide variety of athletic clothes, shoes and accessories. One of the greatest strengths this German based corporation has built is their global presence and their continuous ability to grow geographically. The company already operates in major markets such as Europe, North and South America, Asia-Pacific, Middle East and Africa. The global presence the company already maintains has helped them develop and retain strong financial performances. This wide geographic presence not only helps generate revenue from many different markets, but also enables the company to be able to expand and grow in the future. However, one of their weaknesses is that they seem to indicate a decrease in their ability
…show more content…
For example, Adidas extended its partnership with the German Football Association they celebrated four world cups as well as three European titles. Partnerships like this have successfully increased brand visibility, brand equity as well as increased sales. The company’s successful partnerships give them the opportunity to attract more partnerships and collaborations that can enhance major growing markets such as technology. Although, there is a great opportunity to be had here market competition does pose a very high threat. Major competitors for Adidas include major companies such as Nike, Inc., Under Armor, and Puma. Adidas’ competitors have made attempts to match their rate of growth by opening up new stores in major cities. Initiatives such as this can hinder the potential growth attempted by the company. According, to Morgan Richard, “Adidas’ exploitation of America’s fondness for athleisure apparel is making retail history, while Nike sales sag as Adidas continues to soar. (New York Post. 27 September 2017).” Adidas has grown substantially by fulfilling a consumer need of shifting towards a more casual wearing look. According to CNN, Adidas went from controlling about 5% of the U.S. market share to now controlling about 10% and is still continuing to grow. According to Forbes.com, sales of the Adidas brand grew by 31% in North America alone …show more content…
Nike uses technology with their products to make compatibility between products easier and to simplify the lives of their consumers. Nike has just recently partnered up with Apple to launch Apple Watch Nike+, which enable you to “train with in-ear coaching, stream your favorite music and receive notifications — even when you don’t have your phone.” Although Adidas is dominating the market, it is failing to incorporate technology into products or to partner up with tech companies to up their sales and consumer brand loyalty.
An important part of an industry report is the Qualitative analysis. Doing a qualitative analysis captures the part of the company that cannot be captured just by crunching numbers. Some of these areas include “positive associations with the brand, the management’s trustworthiness, customer satisfaction, competitive advantages and cultural shifts” (Investopedia.com). In this section we will briefly touch on those section to determine if Adidas is a potential investment
For example, Adidas extended its partnership with the German Football Association they celebrated four world cups as well as three European titles. Partnerships like this have successfully increased brand visibility, brand equity as well as increased sales. The company’s successful partnerships give them the opportunity to attract more partnerships and collaborations that can enhance major growing markets such as technology. Although, there is a great opportunity to be had here market competition does pose a very high threat. Major competitors for Adidas include major companies such as Nike, Inc., Under Armor, and Puma. Adidas’ competitors have made attempts to match their rate of growth by opening up new stores in major cities. Initiatives such as this can hinder the potential growth attempted by the company. According, to Morgan Richard, “Adidas’ exploitation of America’s fondness for athleisure apparel is making retail history, while Nike sales sag as Adidas continues to soar. (New York Post. 27 September 2017).” Adidas has grown substantially by fulfilling a consumer need of shifting towards a more casual wearing look. According to CNN, Adidas went from controlling about 5% of the U.S. market share to now controlling about 10% and is still continuing to grow. According to Forbes.com, sales of the Adidas brand grew by 31% in North America alone …show more content…
Nike uses technology with their products to make compatibility between products easier and to simplify the lives of their consumers. Nike has just recently partnered up with Apple to launch Apple Watch Nike+, which enable you to “train with in-ear coaching, stream your favorite music and receive notifications — even when you don’t have your phone.” Although Adidas is dominating the market, it is failing to incorporate technology into products or to partner up with tech companies to up their sales and consumer brand loyalty.
An important part of an industry report is the Qualitative analysis. Doing a qualitative analysis captures the part of the company that cannot be captured just by crunching numbers. Some of these areas include “positive associations with the brand, the management’s trustworthiness, customer satisfaction, competitive advantages and cultural shifts” (Investopedia.com). In this section we will briefly touch on those section to determine if Adidas is a potential investment