In-depth Review of SWOT Analysis of Adidas

In the sportswear industry, Adidas is known as the market leader. It is because it can offer high-quality products for its consumers, especially athletes. In this guidepost, we will discuss the SWOT analysis of Adidas. This way, you will get enough insight into the company’s capabilities. You will also learn about potential threats affecting the company's growth. Then, we will also recommend a certain tool for creating the analysis. Without anything else, read on to learn more about Adidas SWOT analysis.

• Part 1. Adidas SWOT Analysis
• Part 2. Top Tool to Do Adidas SWOT Analysis
• Part 3. FAQs about Adidas SWOT Analysis

Part 1. Adidas SWOT Analysis

Let’s view the four main factors that may affect Adidas. These are strengths, weaknesses, opportunities, and threats. The diagram below will show you the detailed SWOT analysis of Adidas.

Get a detailed SWOT analysis of Adidas.

Strengths of Adidas in SWOT Analysis

Good Brand Reputation

◆ When purchasing products, consumers always consider the brand reputation. It is because they like and enjoy associating with certain brands. The consumer wants to ensure they will obtain a good quality product. With that, it is one of the strengths of the company. Adidas built a good reputation among its consumers and great reputation. After a few decades of operations, Adidas has established a good reputation. It is because they can make high-quality goods with unique designs. Based on Forbes, Adidas is among the most valuable brands in the world.

Partnership and Endorsement Strategy

◆ If we are going to observe, some customers choose brands with which they are closely associated. They will do the same if the brand is associated with their influencers or celebrities. One of the company's best strategies is to partner with well-known celebrities, sports organizations, athletes, and more. This way, they can promote their products to other people. It can also help them to recognize their brand and increase revenue. Also, working with celebrities or other influencers, they can make creative marketing initiatives. They can even take advantage of the power of social media.

Strong Global Presence

◆ The company operates in more than 160 countries. With this, they can reach more consumers worldwide. Also, Adidas has a good image for people, making them popular regarding their products. With this kind of strength, they can attract more customers everywhere. Also, it may help them develop the company's presence internationally.

Weaknesses of Adidas in SWOT Analysis

Expensive Products

◆ Adidas is known because of its high-quality products, especially athletic gear. Also, they created a good image for creating stylish footwear and clothing. But this kind of reputation comes with a pricey tag. As we all know, the products of the company are expensive. It isn't good for the company when consumers can find more affordable sportswear with the same quality. This weakness may put the company to less sales and revenue. Consumers will go to their competitors to purchase cheaper products and services.

Changes in Fashion Trends

◆ Another weakness of the company is its slow response to changes in fashion trends. Many customers change their preferences quickly. But the company is not that good at changing its product’s design. As a result, consumers can’t choose some of the clothing and footwear. So, they must prefer going to other stores that can meet their satisfaction in fashion. The company must focus on observing the customer's preferred styles or designs. This way, they can maintain their sales and stay still in the competition.

Shortage in Supply Chain

◆ The company faces various disruptions. It includes slow and delayed delivery of raw materials, trade disputes, and other unforeseen events. These disruptions can result in supply chain shortages. Like other businesses, Adidas also depends on a global supply chain comprising subcontractors and vendors. If there is a break in this supply, it can be a big issue for the company. It includes production delays, lesser output, and higher costs.

Adidas Opportunities in SWOT Analysis

Digital Transformation and E-commerce

◆ In this modern era, it is an opportunity for Adidas to engage in an online platform. They must create an application for their consumers to shop online. This way, even if the customers don’t want to go to the physical store, they can use their gadgets. With this, it will become beneficial to both the company and consumers. Aside from that, the company can reach more consumers who want to purchase their products. With the help of e-commerce, it can take advantage of its competitors to increase their market sales.

Partnerships and Collaborations

◆ It is effective to collaborate with celebrities and other influencers. So, it is a big opportunity for the company. They can create innovative and fashionable clothes and other products to attract more of an audience. Adidas must continue to partner with them to increase their targets. Plus, the company must build a good relationship with other companies. This way, they can still promote their products to other markets. With this, the company can get higher sales while maintaining good partnerships.

Company Expansion

◆ They must expand the business to get more consumers to other countries. It is suggested to build more physical stores in other countries. That way, they can get more customers that may come to the stores. Also, it may affect the company's sales in a good way.

Adidas Threats in SWOT Analysis

Intense Competition

◆ The biggest threat to Adidas is its competitors. The sports apparel and footwear industry is competitive. There are various giants like Puma, Nike, and Under Armour. Like Adidas, they also strive to get large market sales. With this intense competition, there will be changes in prices, profits, and market position. If Adidas wants to remain competitive, it must create a good strategy. This way, they can have various advantages over their competitors.

Fake Products

◆ Another threat to the company is fake products. Since Adidas products are expensive, small companies produce Adidas-like products. These fake products are cheaper than the original ones. It threatens the company because some consumers prefer purchasing fake products. It may affect the company's reputation and brand image. Also, some loyal customers will think twice if they have to buy the original products or not anymore.

Part 2. Top Tool to Do Adidas SWOT Analysis

Suppose you want to create the Adidas SWOT analysis. If that’s the case, use MindOnMap. The tool has exceptional functions to build a stylish and comprehensive SWOT analysis. Also, it lets you attach various text, colors, shapes, and more. Plus, the main interface of the tool is perfect for all users.

On top of that, you can collaborate with other users with the help of its collaborative feature. This way, you can brainstorm with each other while creating the SWOT analysis for Adidas. Best of all, the tool operates flawlessly across different web platforms. You can utilize the tool on Google, Firefox, Safari, and more. Without further discussion, access the tool and have good experience in generating the SWOT analysis of Adidas.

Part 3. FAQs about Adidas SWOT Analysis