As for our SWOT analysis, we will analyze the strengths, weaknesses,

opportunity, and threats of Adidas. The first element of SWOT analysis is the
strength. Adidas had a very strong brand name recognition in market served.
Adidas-Solomon’s brand include Adidas, Taylormade Golf, Salomon, Arc‟Treyx,
s which one of its segments is footwear like ski boots and bindings, snow blades
and apparels like snowboard apparel, hiking, apparel and outdoor apparel. Not just
footwear and apparels but Adidas-Solomon also served many markets that also
includes equipment like winter sports, climbing equipment, skateboard, and golf
equipment. Adidas-Solomon is the leading player in the sporting goods industry.
The company was amongst the top players in the sporting goods industry because
it is committed to sports for meeting consumer expectations. The company’s
revenues from net sales is continuously increasing as reflected in the Financial
Summary of Adidas in its last five years sale performance. Its growing revenue
performance helped in maintaining a very good image for the company and
improved investors confidence. Adidas is also excellent in it’s marketing strategy.
Among its notable strategy is to give sponsorship to excellent athletes and teams in
sports such as football, basketball, running, boxing and lifestyle. Adidas appointed
some notable sporting icons such as Tracy McGrady (basketball), David Beckham
(football), and Haile Gebrselassi (running). The company afforded it the
opportunity to undertake global advertising campaigns in print media, televisions,
and many other. The next element of SWOT analysis is weaknesses. Among the
weaknesses of Adidas as its products are overpriced. This will cause potential
customers to look for other cheaper options with similar qualities. The strartegy of
Adidas-Solomon was lacking focus. This is because it has a very broad product
portfolio, including sport performance products for athletic sports like basketball,
golf, tennis and running. The company’s overdependence on the Adidas brand
segment, which mainly serves the athletes requirements, makes the company’s
overall revenues susceptible to market conditions in this segment. The third
element of SWOT analysis is the opportunities available for Adidas-Solomon. As
there are more demand on lifestyle products, Adidas is also trying to cater for these
needs. A high-end fashioned designer had created a functional sport performance
range for women. It offered products for running, gym/workout and swimming as
well as cover-ups. The company also planned to implement a new model for its
supply chain, which will considerably reduce the time taken and improve cost
efficiency, etc. This initiative helped the company in serving its customers faster,
thereby gaining a competitive edge over its peers. One of the opportunities is the
company’s sponsorship of major sports events which brought great recognition to
its products. The last element of SWOT analysis is threat. As we can see nowadays
Adidas has many competitors such as Nike, Puma, and emerging Chinese
manufacturing giant lenin. Adidas need to regularly update its products remain
competitive. Besides Adidas also need to be aware of its competitors’ actions, if it
is not aware of their actions Adidas may left behind in terms of promotional
activities and also quality of products. Changing of customers products is not only
an opportunity to Adidas but a threat as well. The company’s manufacturing
activities were mostly concentrated in China and other Southeast Asian contrries.
Hence, adverse changes in the exchange rate between US dollar and Euro had a
negative impact on its overall revenues.