STRATEGIC BUSINESS ANALYSIS

CREATIVE ASSESSMENT

Kindly answer the following questions:

Kindly pick a company. Analyze it based on the Boston Consulting Group Matrix (BCG). Why is it
located in that part of the matrix? State your reasons.

Adidas is a multinational company that manufactures, markets and sells shoes, clothing, accessories
and equipment. We need to look at the different product categories of the Adidas company to analyze
their product portfolio using the BCG matrix.
Let’s start with Adidas’ footwear division, which is the company’s main source of revenue. Adidas’
footwear division is a bright spot in the BCG matrix. This is due to the large market share of Adidas in
the shoe industry, as well as the high growth rate of the shoe market, which is due to the sudden
increase in demand for sports and fashion shoes.
Second, let’s look at Adidas’ apparel division. In the BCG matrix, Adidas’ apparel division is a cash
cow. Adidas has a large market share in the apparel industry and although the growth rate of apparel
is not as high as that of footwear, it is steady with the continued demand for sports and athletic wear.
Finally, the Adidas gear and accessories department is a question mark. This is due to the relatively
low rate of market growth in this segment, but Adidas has a small market share in this category. As a
result, Adidas has to decide whether to invest in this segment to make it a star or leave it altogether.
In conclusion, the Adidas company is located in the Star and Cash Cow categories of the BCG Matrix.
This is due to Adidas’ large market share in both footwear and apparel, both of which are growing
rapidly. While Adidas’ gear and accessories division is a question mark with low market share and slow
growth, more research is needed to determine its potential.
Overall, Adidas’ product portfolio is strong and diverse, with dominant market positions in its key
segments.