CASE STUDY: ADIDAS GROUP
To be a global leader in the sporting goods industry
To produce brands that are novel, fun and have a passion for athletics and active people worldwide. We are committed to delivering industry leading financial results, innovating the most advanced product focusing on our consumers, and maintaining all of this while being a good corporate citizen.
Strengths Weaknesses 1. Adidas Group has three main divisions (Adidas, Reebok, TaylorMade).
2. Markets wide range of products for professional athletes, amateur athletes and all fitness minded people.
3. Market in Asia and Latin America has increased rapidly from 2007 – 2009.
4. Committed to corporate social responsibility such as Human Rights Program that aids underprivileged youth participate in sports.
5. TaylorMade is the world leader in metalwood suppliers.
6. Adidas apparel revenues increased the most from 2007 – 2009.
7. Has high goodwill.
8. Adidas has thousands of outlets and distributors globally.
1. After World War 2, ADIDAS had limited materials and workers.
2. Revenue from North America fell annually from 2007 – 2009.
3. Reebok sales and gross profit dropped 8% and 12% respectively.
4. Sales for hardware and footwear products decreased slightly from 2007 – 2009.
5. Has extensive long term debt.
6. Net income decline by 30% in third quarter of 2009.
7. Gross profit margin dropped 3.7% in third quarter of 2009.
8. Revenue declined by 6% in third quarter 2009. Opportunities Threats 1. Partnership with EUFA and NBA.
2. Courted many famous athletes to endorse Adidas products.
3. Exclusive contract with NFL and NHL.
4. Football team sponsored by ADIDAS won the World Cup.
5. Acquired few giant sporting goods companies – TaylorMade, Reebok.
6. Products produced by Adidas Group are in the industry that is expected to improve.
1. Nike expanded their product range.
2. Nike increased penetration into Western Europe and Eastern Europe markets.
3. Competitors have better technology to market their products.
4. Competitors are going green – focus on delivering environment friendly products.
5. Competitors are focusing on producing top quality products.
6. Increased in number of competitors as more companies are expected to enter the market.
7. Consumers are turning away from luxury brands.
8. Consumers prefer lower cost footwear.
List of External Factors
Opportunities Politics Economics Social Technology Competitors
Threats Politics Economics Social Technology Competitors
External Factor Evaluation (EFE) Matrix
Key External Factors Weight Rating Weighted Score Opportunities
Competitive Profile Matrix (CPM)
Adidas Nike Under Armour Critical Success Factors Weight Rating Score Rating Score Rating Score