The supply chain of Adidas is global and multi-tiered and includes both direct and indirect contractors. The focus of Adidas has been on North American markets which are a priority market and mainly the metropolitan cities where most of its customers are found. In recent years, the brand also made changes to its product portfolio to focus upon its core products including shoes and apparel. Nike caters to athletes. However, the competitive strength of Adidas has grown in recent years and one can expect its growth momentum to sustain in the coming years. Furthermore, this combination of knowledge was translated into Nike’s knowledge based core competences in design and development. Nike and Adidas are renowned sportswear brands, who have penetrated, targeted, segmented and … The global sports shoe industry is expected to grow at a healthy rate over the next five years. Likewise, constant competition from small and local competitors and substitute products is also a threat for Adidas. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. The business of Adidas is seeing impressive growth. In fact, they were dissatisfied with their existing athletic shoes and this led them to set up Nike with the main objective of coming out with running shoes that are comfortable and durable. However, if we compare the performance of the largest two brands in recent years, Adidas is in an aggressive mood and all set to outperform Nike. In 2017, the brand completed the sales of its TaylorMade, Adams Golf and Ashworth brands and CCM hockey business. Strengths of NIKE in SWOT Analysis. With growing prices of raw material and labor, the operating expenses of Adidas have also kept growing. Its marketing expenses in 2018 were 10% higher compared to the previous year. As Adidas, Nike also focuses on … Nike is operating in 45 countries with more than 700 retail outlets outside the United States. Recently, Nike has provided a new design to the consumers. Adidas sales from e-commerce channels are growing. In 2018, the company invested $153 million in R&D compared to $187 million in 2017. Asian markets and particularly the emerging markets present a wonderful growth opportunity for brands like Adidas. SWOT analysis of Adidas. Adidas is a German brand established in 1949 that designs and manufactures sports shoes, clothing and accessories. Adidas is the second best premium brand after its top competitor Nike, which is the no.1 premium brand. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. 2. In recent years, it has increased its investment in marketing and promotion. Regulatory pressures are also adding to the problems faced by the sports shoe brands. Adidas works with total 700 independent suppliers who manufacture Adidas products in more than 50 countries. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. The global clothing apparel market is oligopolistic with for players Nike, adidas, H&M and Zara having a combined market share of 7.0%. Anybody with a body is an athlete, and thus anybody can be an athlete. Not just Adidas, but its rival brands are also investing aggressively in marketing as well as research and development to grow their sales and revenue. Porter’s Competitive Forces3. Adidas is a leading sports shoe and apparel brand that has enjoyed superior growth in recent years driven by higher focus on product innovation and marketing. Supply chain management of Adidas is also an important strength of the brand. Nike is a sports brand providing niche products such as sportswear and apparels to consumers. Within the sports industry, Adidas and Nike are two prominent names across the world countries. contact: support@notesmatic.com, admin@notesmatic.com, Adidas works with total 700 independent suppliers, What You Need To Know About Marketing for Your New Business, Easy Ways Businesses Can Incorporate Sustainability. Adidas also tries to achieve the best results from its marketing investments and  doing more by investing less. Threats in the SWOT analysis of Adidas Competition: Although Adidas is a global brand but it is facing fierce competition from other brands like Nike which is No.1 brand and Adidas being in 2 nd Position in this premium segment. Needless to say, the most important strengths are Nike’s powerful brand and low product cost. Nike is one of the leading firms, which is worth $15,000,000. A stronger dollar is already hurting the profits of sports shoe brands. On the one hand, while it allows Adidas to focus on other aspects of business, on the other it adds to operating costs. Nike Vs Adidas 1. adidas VS nikeA bird’s eye view of the e-marketing concepts incorporated by the giants ofsports apparel.Deepak Krishnamurthi8/20/2007 2. Currently, the brand has outsourced virtually all of its production to external partners. Compared to its rival Nike Ink, Adidas has products with reasonable prices for all people . • It have an excellent advertising strategy by using significant elements , they are Celebrity spokespersons (Michael Jordan, Tiger Woods, Lance Armstrong, Mia Hamm, etc.) Nike … This is one of Nike's solid focuses. The company was founded on the principle that it would make shoes for anyone who could walk or run and this has been the guiding philosophy behind Nike. Decline in economic activity in any of these regions can cause a decline in revenue and profits for the brand. Roughly every four years, Nike throws a World’s Fair for sport tech, showcasing the brand’s latest innovations in gear ahead of the summer Olympic Games. 2018 was a profitable year for Adidas. Competition between the two is growing all the more intense with time. The brand is also investing in sustainability innovation and building sustainable products to grow its popularity. Learn more about Adidas, its business strengths, weaknesses, opportunities and threats in this SWOT analysis. The companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. SWOT Analysis of Adidas: Conclusion With billions of dollars in annual profits, Adidas is no small fish. Adidas has continued to expand its product portfolio over the recent years by introducing several new models. The sports apparel industry has been Nikes market. Economic fluctuations in key regions where Adidas sells its products including North America, China, and Asia Pacific may slow down Adidas sales and lead to decline in revenue. It offers products in 8 major varied categories which includes Football, Basket ball, Women 's training, Men 's training, running, action sportswear and Golf. Adidas offers its suppliers continuous training and education. The main mission of AG and its operations team is to provide customers better, efficient and desired products at right point of time across the channels. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. The company has divided its business on a geographic basis. 4.1. Nike is its nearest competitor and is also known for its heavy focus upon marketing. While Nike on the other end has very specific target audience.It focuses mainly on males and females, who are between 18 35 years old. Abhijeet has been blogging on educational topics and business research since 2016. Apart from its geographical reach through physical stores, the brand is also reaching its customers through e-commerce channels. Both Adidas and Reebok brands have adopted this strategy to grow their range of innovative products. Adidas is ambitious to gain higher market share and is investing in research and development. The company put through a process of streamline as known as “Newellization”. Post author By Hitesh; Post date 30th August 2020 “ LOS ANGELES, United States:The report titled Global Sports and Fitness Wears Market is one of the most comprehensive and important additions to QY Research’s archive of market research studies. Possibility of distress from growing beyond its capabilities. They like wearing them as casual fashion. Remember: This is just a sample from a fellow student. For continuous growth and superior performance, the brand needs to grow its penetration in the Asian markets. You may also like reading SWOT analysis of Amazon. Adidas could bring costs down through backward integration. The company produced more than 500 million shoes in 2018 using recycled plastic waste. The print promotions are by and large straightforward yet send an intense message. Brands need to keep bringing new and stylish products to shelves to sustain the level of demand in the market. Press release - HTF Market Intelligence Consulting Private Limited - Activewear Market Swot Analysis by key players HRX, Adidas, Asics, Decathlon Sports - published on openPR.com Adidas is an international sports brand. The revenue of Adidas has increased but so have its operating expenses. SWOT Analysis of Adidas and Nike4. Adidas faces a fierce competition from Nike and Puma. Adidas is also trying more targeted and aggressive tactics for marketing of its brand. The company released several new products and was able to achieve higher sales from its e-commerce channel. Nike and Adidas marketing strategies - Duration: 8:58. Furthermore Nike has production flexibility. There is never any price shown in their commercials and Nike quite often utilizes a prevalent competitor to advance their item. The chart above had a similar pattern with the rest. Besides this, there is regular competition from local players, substitutes and market penetrators. President and CEO Mark Parker said: “At NIKE, Inc. we run a complete offense, and it’s based on a core commitment to innovation. So production of Nike products can be moved any where around the world to the most competitive factories. The brand needs good quality sustainable material to make the products it sells. 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