Contents

Task 1:.........................................................................................................................................................1
Sports industry in Pakistan:.........................................................................................................................1
Organization:...............................................................................................................................................2
Organization types by purpose:...................................................................................................................2
Business:..................................................................................................................................................2
NPO:........................................................................................................................................................2
Subsectors of organizations:........................................................................................................................2
Subsector organizations examples:.........................................................................................................3
About Adidas:..............................................................................................................................................3
Adidas Mission statement:......................................................................................................................3
Adidas Vision statement:.........................................................................................................................4
Adidas Core values:.................................................................................................................................4
About Puma:................................................................................................................................................4
Puma Mission Statement:.......................................................................................................................5
Puma Vision Statement:..........................................................................................................................5
Puma Core Value Analysis:......................................................................................................................6
Adidas Stakeholders:...............................................................................................................................6
Puma Stakeholders:.................................................................................................................................6
Adidas organizational structure:..................................................................................................................6
Puma organizational structure:...................................................................................................................7
Task 2:.........................................................................................................................................................8
Adidas Organizational structure..................................................................................................................8
Adidas Organizational Structure Advantages & Disadvantages:..................................................................9
Inter-relationship between different functional areas:.............................................................................10
PESTEL Analysis of Adidas:.........................................................................................................................11
POLITICAL FACTORS:..............................................................................................................................11
ECONOMICAL FACTORS:........................................................................................................................11
SOCIAL FACTORS:...................................................................................................................................11
TECHNOLOGICAL FACTORS:...................................................................................................................12
LEGAL FACTORS:....................................................................................................................................12
ENVIRONMENTAL FACTORS:.................................................................................................................12
Adidas SWOT Analysis:..............................................................................................................................12
Strengths...............................................................................................................................................12
Weaknesses:..........................................................................................................................................13
Opportunities:.......................................................................................................................................14
Threats...................................................................................................................................................14
Conclusion:................................................................................................................................................15
Recommendations:....................................................................................................................................15
References.................................................................................................................................................15

Task 1:
Sports industry in Pakistan:
Pakistan's sports goods sector is critical to the global commerce in sporting goods. This industry is now
exporting its goods to other places throughout the globe. In order to meet the demands of foreign
target markets, these items are made specifically for export. As a result of their superior quality,
Pakistani sporting products have become well-known around the world. As a result, the manufacturing
process begins with raw material adaption and ends with client delivery. Better raw material selection,
product design, manufacturing processes, and timely delivery to customers are all part of this process.
Exports of sports items from Sialkot, Pakistan, to multinational companies like Adidas, Adidas, Puma and
Lotto have grown significantly in recent years. Sporting goods, such as sportswear, were the focus of our
investigation into the current state of affairs in our nation. Approximately 1.51 percent of Pakistan's
exports are made up of sports items, with football accounting for 43 percent of all sports goods shipped
in 2012-13. The majority of Pakistan's exports go to Europe. The purpose of this research is to examine
the role of Pakistan's sports goods sector on the country's economic development.. This paper illustrates
the significance of Pakistan's sports goods business, as well as the SWOT analysis of Pakistan's sports
goods sector and other statistics and figures. An important role is played by the Pakistan Sports Goods
and Manufacturing Association. Although Sialkot, a city in Pakistan's Punjab region, has been
manufacturing and exporting sports products and accessories for more than a century, it is still a
relatively new player in the global market. After Pakistan gained its independence, the city of Sialkot
became the centre for the production of sporting products. Sadar Ganda Sing and Bahadur Sing founded
a business in 1883 to produce sporting products for the British troops in India's northern subcontinent.
Since then they have made cricket bats and other sports equipment at the plant. They eventually made
their way into the sportswear industry as well. Sialkot's sports goods and apparel industries are booming
right now. (globalvillagespace, 2022)

Organization:
The term "organization" refers to a group of individuals who work together to achieve a common goal.
As a social structure, it encompasses all kinds of formal human connections. Division of labor and

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alignment of duties to corporate goals are two aspects of organizational structure. (businessjargons,
2022)

Organization types by purpose:

There are two main types of organization, which are following;

Business:
Commercial, industrial, and professional activities are all considered to be part of business. Businesses
may either be for-profit or non-profit organizations, depending on their goals and objectives. Sole
proprietorships may be as small as a single person or as big as a multinational organization. The efforts
and actions of persons to manufacture and sell products and services for profit may also be referred to
as "business.” (JAMES, 2022)

NPO:
For-profit corporations exist for the exclusive purpose of making a profit for its shareholders, while non-
profit organizations (NPOs) exist for the purpose of advancing a common good for the benefit of society
as a whole. The non-distribution restriction applies to nonprofits, which means that any surplus funds
must be used to further the nonprofit's mission rather than being distributed to shareholders or other
stakeholders. Some political groups, educational institutions, commercial associations, religious
congregations, social groups, and consumer cooperatives are examples of nonprofit organizations.
(BERRY-JOHNSON, 2022)

Subsectors of organizations:
There are three sectors in the sport and active leisure business; the first is the public sector which is
public facilities that get money from either government or charity. The second sector is the private
sector which is sports and leisure facilities managed by themselves with no financing. The third sector is
voluntary sector this is when individuals volunteer for their community to assist out at a sports facility.

Public Sector

The public sector is the main supplier of sport and leisure options in the UK despite simultaneously being
the greatest source of employment within the industry. The government funded into NGBs and local
councils via Sport England to promote many individuals in sport which then got number of chances

 Funding comes from the national or local government via taxes

 Funding also comes from public funding such as the lottery
 Public sector supply includes swimming pools, leisure facilities and skateboard parks, Sports
grounds, public parks and open areas
 NGB sport development schemes

Private Sector:

This industry is seeking to serve the local populace, which give various activities or fitness programmes
in order for them to generate profit.

 Exercise sessions that are provided by organisations such as David Lloyd or Esporta
 Sports retail stores such as JJB, JD, Sports direct, Adidas or Nike

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  Sponsoring events or teams
 Gambling activities such as horse racing
 Active vacations such as PGL
 Large stadiums that support multi-activity complexes
 Theme parks similar as Flamingo Land

Voluntary Sector

This being the biggest sector out of all three, it is frequently described as the 'grassroots' of British
sports. It is integrated with many major, medium and small businesses; this sector is projected to
include eight million individuals of all ages throughout the UK, many of those people support their own
community, their own sports or even their age group taking part in sports or leisure activities.

 Tennis, bowling, rugby, and football clubs

 Walking, swimming, squash and running clubs
 Hockey, canoeing, basketball, volleyball and netball teams
 Cycling, diving, skiing and climbing clubs

(omegatherapy, 2022)

Subsector organizations examples:

Private Public Ngo
 PUMA  Athletics Federation of  Ball to All
 Adidas Pakistan  Beyond sports network
 Pakistan Archery foundation
Federation
 Pakistan Badminton
Federation
(psgmea, 2022)

About Adidas:
Adidas, or Adidas AG in its whole, is a German maker of athletic footwear, clothing, and sports
accessories. In the early twenty-first century, it was Europe's biggest sportswear company and the
world's second largest (after Nike). Adidas goods have historically been identified by a three-stripe logo,
which is retained in the company's modern "trefoil" and "mountain" designs. Herzogenaurach, Germany
is home to the company's headquarters. (britannica, 2022)

Adidas Mission statement:

The Adidas Group's mission is to "be the worldwide leader in the sporting goods market with brands
founded on a love for sports and a sporting lifestyle." We are dedicated to improving our competitive
position by consistently enhancing our brands and goods." The assertion relies on the company's infinite
potential to provide athletes with the greatest items to enhance their performance. In addition, it
emphasizes its steadfast drive to keep on top of market trends as a branding strategy. Adidas' mission
statement includes the following elements:

 Improving sports.
 Exceeding expectations.

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  Innovations.

(mission-statemen, 2022)

Adidas Vision statement:

In the sports industry, Adidas' vision statement is, "to be the design leaders with a focus on bringing the
most out of athletes with performance assured goods," The company activities and goals might serve as
inspiration for the company's vision statement. It focuses on the innovative nature of Adidas, which has
made it one of the best-known brands in its industry. In relation to this vision statement, some of the
following elements may be found:

 Being in charge of the design. Adidas reaffirms in the first part of its vision statement that it is
not a corporation that follows the crowd. By establishing a high threshold for quality that
matches its consumers' demands, it sets itself apart from its competitors. In fact, the company's
strategy emphasizes "making new" as a key component of the market leadership it provides.
 Boost the performance of sportsmen. A testament to Adidas' commitment to customer
satisfaction is the company's ability to keep up with the ever-evolving demands of the athletic
community. For as long as Adidas has been, the brand has always remained responsive to its
consumers' needs and given them with just what they need to develop their game. (mission-
statemen, 2022)

Adidas Core values:

Adidas' four core values are "performance, passion, integrity, and diversity." Adidas' four fundamental
values are Adidas has been at the top of its game for decades by adhering to these core values. A
company's strategic strategy must be consistent with its goal and vision statements. As a result, the
following information is available:

Performance. All of Adidas' efforts are focused on ensuring that the highest pace of performance is
maintained for all parties involved. The sportswear, footwear, and accessories sector is very
competitive, and only the finest players can survive.

Second, this value is all about having an appetite for sports and all that it has to offer. Adidas, on the
other hand, is adamant about the importance of a company's culture of doing the right thing. In order to
maintain client loyalty and enthusiasm for the company's products and services, it emphasizes the
importance of this. So to summarize, Adidas has a global perspective because of the sort of culture it has
developed and the emphasis it places on variety in both its goods and the people it associates and calls
the Adidas family. (mission-statemen, 2022)

About Puma:
PUMA is a global leader in Sport lifestyle footwear, clothing, and accessories, having been founded in
1948 in Herzogenaurach, Germany. PUMA, Cobra Golf, and Tretorn are all owned by the PUMA Group.
More than 9,000 employees work for the firm, which sells its goods in more than 120 countries. When
making choices and taking actions, it is devoted to working in a manner that supports creativity, long-
term sustainability, and global peace while also adhering to the four guiding values of fairness, honesty,
positivity, and creative thinking.

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PUMA's four pillars of legacy, sport, technical innovation, and design have remained constant
throughout the years. By fusing elements from sports, leisure, and fashion, the company hopes to give
each of its product lines a unique appearance and feel. "Sportlifestyle" is the term used to describe this
blending of sports and lifestyle. In the eyes of PUMA, sport is a way of life that stresses health,
wellbeing, and just living an active lifestyle. Puma has taken a more holistic approach to sport since it
can mean so many different things to so many different individuals. This is precisely what
"Sportlifestyle" implies to the company.

One of PUMA's objectives is to become "The Most Desirable and Sustainable Sportlifestyle Company,"
which will be done by capitalizing on the full potential of the sportlifestyle market across all product
categories and regions. PUMA is a multi-category supplier that operates in categories and business
fields/divisions that align with the firm's unique brand positioning and provide opportunities for long-
term value creation. This vision guides our efforts with our global partners and partners throughout the
globe to effect good social and environmental impact. It combines PUMA's "entrepreneurial
sustainability" ideas and efforts with those of "social responsibility." The four pillars of PUMA's Vision -
fair, honest, positive, and inventive - act as a guidepost for all of their decisions. PUMA's future vision is
for a more peaceful, safe, and creative society than the one we now live in. (fashiongear, 2021)

Puma Mission Statement:

According to the company's mission statement, "we aim high, and when we score our objectives, we
strive even higher."" Puma prides itself on being "forever faster," as the company puts it. This strategy
aims to become Puma the world's quickest sports brand. This mission statement contains a number of
noteworthy remarks.

"We aim high" is a sign that the company's leadership approach to management is always based on
ambitious ambitions.

Using the phrase, "When we score our objectives," reveals a history of accomplishment. Puma has a
long history of helping athletes succeed at all levels of competition throughout the globe.

The phrase "we strive even higher" conveys the idea that achieving a goal is only the beginning for a
company. In order to help the organization expand, there is always something fresh to achieve.
(astrogrowth, 2022)

Puma Vision Statement:

Puma’s vision statement aims to be “the most desired and sustainable sports and Lifestyle Company in
the world.” A corporation must become a leader in their sector to generate highly valued items. That
means shareholders, workers, and consumers must all seek to innovate via cooperation and feedback.
The sustainability element of the vision statement covers social responsibility. Puma collaborates with
manufacturers throughout the globe that guarantee safe working conditions and fair salaries. Individuals
and families that live a sports lifestyle concentrate on athletics, exercise, and conditioning every day.
This remark infers that the quality of Puma goods can stand up to these criteria. Then the brand claims
that it aspires to be the greatest in the world in these areas. This last component of the vision statement

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relates it to the purpose of the firm. Aiming high helps Puma identify methods to avoid what it would
deem an inferior outcome. (astrogrowth, 2022)

Puma Core Value Analysis:

Puma's four basic principles are courage, confidence, determination, and happiness. The business thinks
that by adhering to these principles, it is able to go above and beyond its customers' expectations.
People working for the company might leverage their expertise and experience in the field of sports to
generate business credibility. A sense of authenticity with clients is established when Puma keeps
focused on its basic principles, according to the company. That results in a higher appreciation for the
many sports that people participate in. As Puma puts it, "Whatever we do, we do with conviction." With
"heart and soul," we "live to play the game." Although Puma may make errors, the purpose and vision
statements provide a framework for the company to continue going. The brand's basic principles are
then used to inspire both its workers and consumers to live up to their full potential. (astrogrowth,
2022)

Adidas Stakeholders:
The company will engage in a broad variety of interactions with individuals, groups, and organizations.
Their involvement in the organization at various levels and their ability to influence its operations will be
affected by their connection with such individuals or organizations, as their policies and tactics will be
influenced. They will be referred to as corporate stakeholders. They will become aware of their strength
and purpose as they make decisions for the organization. Additionally, the majority of the company's
stakeholders would be included in the decision-making process.Invalid source specified.

Puma Stakeholders:
Employees, NGOs (both foreign and domestic), suppliers, workers / unions, academics, trade / industry -
associations, investors, customers, international institutions, retailers, external monitors, service
providers, and the media are among the stakeholders with whom PUMA interacts. PUMA continues to
priorities industry partnerships. As a result, PUMA works with a variety of international organisations
throughout the year, including the Better Work Program, the Fair Labor Association, the Sustainable
Apparel Coalition, the Zero Discharge of Hazardous Chemicals Foundation, the Apparel and Footwear
International Restricted Substances List Management Group, and the United Nations Climate
Secretariat. (PUMA, 2019)

Adidas organizational structure:

Adidas employs a matrix design framework for their organizational structure. Adidas organizes its
employees and resources by function and product line. The design is quite adaptable. Two managers
may be assigned to a worker in the department responsible for project management, engineering, and
manufacturing (PMEM). After a project is completed, the workers will be working with new personnel.
In Adidas, there are six primary divisions: marketing; human resources; finance; production;
engineering; and projects.

The Executive Board, the Supervisory Board, and the General Meeting form the corporate structure.
"Our sales and marketing initiatives constitute the road map for our operational activities," Adidas
explains in a recent piece. On top of that, the Adidas website boasts, "One of our Group's fundamental
assets is the breadth of our brands. In the sports goods business, each brand has its own individual
character and is focused on serving a certain market segment. As a result, this distinction is essential and
helps us optimize our influence on customers." To stand out from the crowd, Adidas aims to be unique.

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Adidas, on the other hand, relies heavily on what kind of technology? Knowledge of sports and human
anatomy is thought to be crucial. In order to achieve a goal, you'll need to have good communication
abilities as well as design expertise. Adidas employs functional, Divisional, Matrix, and Hybrid
architectures to build their products. Because of the Functional organization, Adidas employees must
have an understanding of sports and the human body, as well as the ability to communicate effectively
in order to achieve their goals. Aside from that, Adidas has operations around the globe. Because of this,
Adidas has a divisional organizational structure with regions. To add to that, functional managers make
resource allocation decisions in accordance with the matrix structure. Product managers decide how
new items will be manufactured. Finally, Adidas has a defined organizational structure. For example,
clothing, shoes, and other accessories are examples. As a last point, we believe Adidas has a system of
decentralized decision-making and power. A decentralized risk management system is in place because
"the Adidas group believes that risks are best detected, analyzed and managed where they originate,"
which reflects the fact that various business areas and locations have varying risk profiles. As a result, we
may assume that workers at all levels contribute to the decision-making process. (tiua, 2022)

Puma organizational structure:

Puma's organizational structure is unitary or U-shaped. An organizational hierarchy places the
headquarters of this structural style at the top, with other organizational components receiving and
implementing strategic decisions made by top executives about how the sporting goods industry
operates. This type of structure is also known as the functional structure. Puma's corporate structure
maintains strong vertical lines of authority and communication, which stretch from the corporate
headquarters to the lowest level of the company. Other sorts of organizational structure are included in
the design of the athletic goods firm as an afterthought. Puma's corporate structure exhibits the traits
listed below in this structural analysis:

 Hierarchy of functional groups (Primary characteristic)

 Product-based divisions
 Geographic divisions

(panmore, 2022)

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Task 2:
Adidas Organizational structure

The word "organizing" refers to the process of rearranging components in line with a set of rules. The
objective of any business is to create value for its stakeholders via its organization (stockholders,
employees, customers, suppliers, community). To achieve optimum performance, an organization's
structure is a key consideration in the study of organizations. Human organizations may be divided into
four broad categories, according to management theory. As a result of these structures, there exist
hierarchies, committees' juries and matrix organizations. Organizing is the administrative task of
ensuring that the necessary resources are on hand to carry out the planned activities. In order to
effectively organize, tasks must be assigned, departments must be formed, and resources must be
allocated to each department. Organizing is the administrative task of putting together a team and
allocating resources to achieve a certain objective. Organizing duties into specific roles and clarifying
reporting and authority relationships is only one of the many reasons to do so. Delegating authority
necessary to complete tasks and assigning and deploying resources in a coordinated way are also
included in the organizing process. To get the most out of their workforce and resources, managers
must coordinate the efforts of many stakeholders. An organization's structure can only be developed
with the help of three factors. The acquisition and training of human resources is also part of organizing.
Organizing also entails building communication protocols and infrastructure. The organizing process
entails figuring out how to organize these many activities and resources.

Setting up an organization is the act of classifying and coordinating various tasks in order to achieve
certain goals. Organization is the process of identifying and arranging the tasks to be accomplished,
defining and allocating responsibility and authority, and building connections in order to allow people to
work as effectively as possible. It's possible to think of organizing as a set of tasks aimed at gathering and
arranging resources so that strategies may be put into action with maximum effectiveness. As one of the
most important management roles, organizing encompasses a wide range of operations. This means

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that organizing may include a broad range of subject matter. Organizing a company requires a variety of
techniques, some of which are listed below. It is the coordination and interconnectedness of the
numerous activities that constitutes organizing. Organization is a core managerial responsibility. The
term "organizing" refers to the process of developing a framework for the effective administration of an
organization. Organizations are groups of people who work together to accomplish a shared goal.
Building a framework or structure from multiple interconnected elements is linked to this concept. To
accomplish organizational objectives, this is the process of distributing and organizing human and non-
human resources. This role also has a lot to do with organizational culture and human resources
management. Organizing also include the process of securing the financial and human capital necessary
to carry out the organization's mission. Staffing and obtaining funding and raw supplies are time-
consuming and labor-intensive processes in many companies. When everything seems to be in the right
position, it's thought to be organized. But it’s only finally arranged if each piece has no impact on time
required to discover it. In that sense, organizing may also be described as to organize distinct items in
logical order for improved searching. Organizations are groups of individuals typically aiming to organize
some particular topic, such as political concerns.

Arranging, on the other hand, may be as sophisticated as organizing the whole world's data. An
important part of organizing is making sure that the organization's structure is appropriate for achieving
the agreed-upon goals. Work must be assigned, authority and responsibility must be specified, and a set
of rules and procedures must be established that direct the behavior of workers. The organization's
structure should not be seen as a fixed entity, but rather as one that is continually evolving to meet the
demands of the organization. It is in the organization that all of the available resources are pooled.
(ukessays, 2022)

Adidas Organizational Structure Advantages & Disadvantages:

Adidas has functional structure and that’s why it has following advantages and disadvantages;

Advantages:

Among the most obvious benefits of a functional organization is that it ensures a consistent degree of
departmental expertise. This is particularly true if a corporation has many functional levels within a
single department. For instance, a dedicated technical support group may be tasked with the
responsibility of following up on issues that were not resolved by the primary telephone technical
support group.

This organization is open to anybody with a bachelor's degree in computer science and at least three
years of field experience. This ensures that support issues escalated to the follow-up group are resolved
by skilled personnel, hence increasing customer satisfaction and retention.

Additionally, operational agility is a benefit of this organizational specialty. By and large, a more
experienced professional will be able to resolve a support problem faster than a less experienced one.
There is a significant likelihood that new staff will also get faster training.

By segmenting the workforce according to function, the organization's responsibility and job allocation
may be defined. Managers may thus more quickly assign assignments to the most competent staff, so
avoiding duplication of work and time.

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Disadvantages:

Departments comprised of employees that specialize in certain areas of work result in team silos.
Employees in diverse departments are unable to communicate with one another, which may have a
detrimental effect on the organization in the long run.

The capacity of a company to succeed may be predicted by the amount of motivation and productivity
shown by its personnel when working toward a common objective. When each group of specialists in a
functional organization is relatively isolated, the common thread highlighting a single overarching
organizational goal is virtually always weaker.

Each group should be able to accomplish its objectives independently, albeit this is not always the case.
Isolated groups may underperform or even fail owing to a lack of institutionally recognized mechanisms
for communicating their needs and issues to potentially assisting functional groupings. Management in
other functional areas may be unable to respond promptly or effectively because "it is not our problem."
Once cooperation is required, the optimal time to execute it may have passed.

Additionally, there is a potential of territorial disputes in a functional organization as a result of

functional groups' unwillingness to collaborate. When each department has its own functional
organization or a strong feeling of a single mission, disagreements about goals, financial competition, or
any number of other issues may occur. (Patrick Gleeson, 2022)

Inter-relationship between different functional areas:

There are different departments or functions in organizations some of which are following and their
interrelationship has been explained;

Production department: the production department is responsible for the production of the goods for
the sale purpose. It’s the responsibility of purchasing and warehouse department to make sure the
availability of the raw materials for the production.

Research and development: The R&D department is responsible for the innovation in different
departments, i.e. investigating new and innovative procedures of products and making the products
innovative.

Purchasing: The procurement department is responsible for purchasing the raw material for the
production department so that they will be operating in a smooth manner. They will be getting budgets
from the finance departments.

Marketing and Sales: The marketing and sales department will be responsible for communicating the
product to customers and make sure to achieve the sales target for making good profit and also
investigating the concerns and demands of the customers.

Human Recourse: The human resource department will be responsible for making the employees an
staff availability for the various functions within the organization and making sure providing trainings to
them to carry out their roles and responsibilities.

Accounting and Finance: The accounting and Finance department will be responsible for record
keeping, budgeting and forecasting of other departments like production, sales and etc.

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(LIBERTY LAKE, 2022)

PESTEL Analysis of Adidas:

Following is PESTEL analysis of Adidas;

POLITICAL FACTORS:
It has nothing to do with the US-China trade war, since Adidas is a German multinational. As many of
you are aware, Adidas' primary market is the United States. Trump's administration pursued
protectionist policies as a nationalist government. The Trump administration has put tariffs on products
made in China. Adidas produces its products in China. When products manufactured in China are
exported by a US-based firm, they are seen as manufactured in China. As a consequence, the business
will face a large tax burden. Different governments operate under a variety of different sets of
regulations. Numerous elements have a role, including extremism, terrorism, nationalism, patriotism,
and restricted acceptance and restrictive social institutions. These factors relate to the stability and
business environment of a nation. Outsiders have a place in a conservative and patriotic culture.
(wiselancer, 2022)

ECONOMICAL FACTORS:
It has only been in the past few decades that the benefits of physical exercise have been more widely
recognized. Golf, gyms and running groups are all popular options for those who want to stay in shape.
They'll need athletic shoes and clothes to do so.

Adidas products have a significant impact on the company's performance. As a consequence of the
outbreak and the ensuing lockdown, many people have been forced to stay inside. They'll go back to
their usual routines as soon as possible and start taking part in outside activities.

This closure has left many people stranded in their houses. Many jobs have been lost as a consequence
of the pandemic. They've cut down on non-essential expenses. They'll have to cut down on their gym
memberships and shopping sprees, to put it another way.

This company cares about the people and the places in which it works many programmer have been
designed to improve the health and well-being of employees. (freepestelanalysis, 2022)

SOCIAL FACTORS:
In the last few years, people have begun to appreciate the value of engaging in physical activity for their
health and well-being. Many individuals are joining health and fitness clubs, including golfing, gyms, and
running groups. To accomplish so, they'll need athletic footwear and clothing.

Adidas items play a key part in the success of the corporation. People have been confined to their
homes as a result of the pandemic and the lockdown. As soon as things return to normal, they'll begin
participating in outside activities.

People have been confined to their homes as a result of the lockdown and shutdown. Pandemic has
resulted in many job losses. They have cut down on spending on non-essentials. To put it another way,
they'll have to forego their gym and clothing budgets.

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Adidas cares about the people and the communities in which it operates. People's health and well-being
are the company's top priorities, and they've developed a number of initiatives to help. (SAPA, 2022)

TECHNOLOGICAL FACTORS:
In today's fast-paced world of research and development, new goods must be offered quarterly or
annually. If you do not, your competitors will gain an edge in the market. They will gradually but steadily
erode your market share. To be competitive, you must stay current on technological advancements.
Adidas' success may be ascribed in part to their continuous technical advancements.

Numerous experts are working to enhance the raw material used in technology. It would save waste and
enable sportswear manufacturers to repurpose material by melting it down. Adidas, I believe, would
greatly gain from inventing a new synthetic material.

When a pandemic or a lockdown caused businesses to shut, consumers realized the value of online
buying. Adidas has already created an e-commerce portal. It is not on a par with Nike, Amazon, or
Walmart in terms of quality. This is a fantastic opportunity for the firm, and it should seize it.
(acasestudy, 2021)

LEGAL FACTORS:
Adidas was unsuccessful in its legal struggle with the General Court of the European Union over the
three-stripe emblem and the iconic trademark of the brand. The corporation was unable to demonstrate
to the court that its 3 stripes emblem is easily recognizable by the general public. To the corporation, it
meant a tremendous deal. International counterfeiting of the brand has increased after it lost its
trademark.

Adidas is the owner of the IP system and all related rights. Counterfeiting, design piracy, and other forms
of infringement are all reduced as a result of this program's implementation. In the sportswear sector,
counterfeit goods are a typical occurrence. The company's risk is reduced thanks to patent rights and
other legal safeguards.

When it comes to promoting its goods, Adidas has a history of enlisting the help of athletes and
celebrities to serve as brand ambassadors. Millions of people follow their favorite celebrities and fans
everywhere they go, so when they join a group, millions of people follow them. (SAPA, 2022)

ENVIRONMENTAL FACTORS:
According to Adidas, the company's production facilities do not generate prohibited or environmentally
unfriendly items. Future Craft Loop, Parley for the Oceans, Adidas Formation Technology, Dyeing
Processes, Bio steel Fiber, and Sports Infinity are just a few of the company's reduced waste initiatives.
All of these initiatives are geared at making use of oil-based plastics in an effort to cut carbon emissions
while also creating a product that is both thinner and more efficient. (marketingtutor, 2022)

Adidas SWOT Analysis:

SWOT analysis of Adidas is given following;

Strengths
Following are the main strengths of adidas.

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An Influential Name

One of Adidas' greatest assets is unquestionably its well-known brand. Adidas is one of the best-known
sportswear companies in the world, with Nike and a few others. The brand is well-known, and it has a
favorable brand image as well. As a result, Adidas items are regarded as trendy and of good quality. For
Adidas to be able to take in so much revenue from premium gear, it relies heavily on its well-known
brand.

Adidas has a well-developed distribution network in addition to a strong brand image. In terms of
logistics, Adidas' global distribution network efficiently transports millions of items throughout the
world. As soon as a product is available for market, buyers have a wide range of options for purchasing
it. Brick and mortar shops throughout the globe offer Adidas goods, some of which are Adidas-branded
and others that are part of bigger athletic chains. Beyond its physical stores, Adidas has built a strong
online presence.

Brand Reputation:

Adidas is one of the world's most valued sports brands. According to Forbes, it is rated third (after Nike
and ESPN) in terms of brand value, with a $6.8 billion valuation. Adidas was recognized as the world's
61st most valuable brand in 2019.

An Iconic Brand with a Glorious History:

Adidas has built a strong and renowned legacy and heritage over the course of its long and illustrious
history by influencing and molding several facets of global society. For instance, the firm affected
athletics in the 1970s and hip-hop culture in the 1980s. The brand's unique three-striped tracksuit and
three-leaf motif logo elevated it to cult status, especially among urban youth.

Innovation in New Products:

Since its inception, Adidas has placed a premium on product quality. In 2018, the company spent EUR
153 million in research and development (0.7 percent of its annual net sales) and EUR 152 million in
2019. High-quality, creative items are one of the primary reasons for the company's continued growth.

Portfolio Diversification:

While the Adidas name is mostly associated with the sportswear business, the company's product line is
diverse. It provides a diverse selection of items geared at a variety of sports, including footwear, clothes,
and hardware accessories.

Weaknesses:
Following are the main weaknesses of adidas;

The production of Adidas' products is outsourced to factories in the Far East. This tactic saves the
company money, but it also exposes one of their biggest flaws. Adidas loses some control over how its
products are created when it outsources manufacturing procedures to third-party vendors working in
countries such as China and India. Adidas has a difficult time ensuring that all of its products satisfy the
same stringent quality requirements because of this. Adidas is also vulnerable to third-party suppliers

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because it outsources the manufacturing of its products. Suppliers can simply stop working if they are
dissatisfied with their salary, for example. An organization the size of Adidas may quickly run into
problems as a result of this.

Streamline Your Product Offering

Adidas too has a problem with a limited product line. Adidas has not yet made the decision to broaden
its product portfolio, despite its presence in a number of different price points and international
markets. Adidas' current product line consists virtually entirely of athletic apparel, with an emphasis on
footwear. Despite the fact that the sportswear sector is unlikely to shrink in the near future, it's not
impossible to see new competitors entering the market and stealing Adidas' market share. Adidas would
be less vulnerable to changes in the market or new competitors if it offered a wider range of products.

Few Positive Reviews

Adidas, unlike Nike, has spent very little time and money getting celebrity endorsements for its products.
As a result, Adidas has lagged behind Nike in terms of growth, which is clearly a flaw. There is little doubt
that paid endorsements can only enhance the Adidas brand, even if it is already powerful. Advocacy not
only increases brand value, but it also directly drives sales.

Opportunities:
Following are the main opportunities which are available to adidas;

The Industry Is Expanding.

It is possible that the expanding sportswear business will be the key potential for Adidas. Despite all the
hype, there is no hint that health and fitness will slow down any time soon. There will be an ever-
increasing demand for sportswear as a result of this growth in the number of individuals participating in
sport. However, this isn't only an opportunity for Adidas. As other sportswear companies enter this
expanding market, Adidas must come up with innovative strategies to keep ahead of the competition.

High-Tech Substances

The state of science is better than ever. Numerous advantages over more traditional materials are being
revealed on a weekly basis because to the discovery of novel materials. In addition, buyers are
continuously on the lookout for better-built products. Adidas now has a new potential to exploit smart
materials as a result of these two variables coming together. Investing in the development and
production of novel materials for sportswear could give Adidas an edge over its competitors. Adidas can
invest in the development of new, breathable textiles to keep athletes cool in the summer, or various
gums and rubbers to improve the reactivity of running shoes with each step, for example.

Threats
Following are the main threats to adidas;

Competition

The threat of competition is always there in any business. Due to the severe competition Adidas has
with Nike, they cannot afford to let their guard down. Because the product lines and characteristics of
Adidas and Nike are so similar, customers are left to make their choice based only on personal

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preference. Therefore, Adidas' promotion of its brand image through celebrity endorsements, as
suggested above, is extremely crucial.

Products that are Fake

In the sportswear industry, counterfeit goods are abundant. Premium sportswear companies like Nike
and Adidas command high prices, so the need for a less expensive option with the same powerful name
should be no surprise. Adidas fakes are already out there, but the firm has done a wonderful job of
enticing customers to buy their real product. However, if Adidas had a dispute with one of its overseas
suppliers, the idea of a massive influx of counterfeit products is highly frightening. (pestleanalysis, 2022)

Conclusion:
We have discovered that Adidas has a strong position in the market after conducting a thorough pestle
analysis. Counterfeiting, patent infringement, and other violations of intellectual property rights
constitute a significant concern on a global scale. To reduce the danger, the sportswear brand should
address these challenges.

Adidas is one of the world's most recognizable sportswear companies. Only a few minor faults, such as
outsourced production, a restricted product selection, and a small number of celebrity endorsements,
are sufficient to offset this massive branding and distribution infrastructure. Adidas, on the other hand,
has a future in this fast growing industry.

Recommendations:
Marketing activities at Adidas have been well-managed. It is now necessary to place an emphasis on
increasing customer involvement. In order to compete with Nike, the brand's main competition, it must
priorities client retention and engagement. Each customer's CSLV will rise as a result of this. It's
important to keep up the momentum now that the brand has seen double-digit growth in the majority
of areas. An appealing client experience and excellent customer service are critical to maintaining this
growth rate. With increasing numbers of modern working class professionals in Tier 2 cities, it must also
focus on these areas. Priority is shifting to the fast-growing Asian markets, following Europe and North
America, Targeting these markets with customized strategies will help Adidas develop more quickly.

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