Adidas Case Study SWOT analysis and Michael Porters Five...

Executive Summary: Adidas was the dominating manufacturer of sporting goods. It achieved this success by developing cleated shoes for the soccer and track and field sports. The landscape of the sporting goods industry has changes, but Adidas has not changed with it. Sporting good textiles and footwear have become popular with younger individuals as a substitute for casual wear. Soccer and track and field sports are no longer the mainstream sports. These sports have been replaced in market share by sports such as baseball, basketball, football, and fitness activities like aerobics. Adidas has not developed the marketing mix to compete in these sports and fitness activities. The participation by women in these sports is growing, yet Adidas†¦show more content†¦Industry The sporting goods industry consists of three segments: athletic footwear, apparel, and equipment. Athletic footwear makes up 33% of the sporting goods industry, apparel 50%, and equipment makes up the remaining market share. The three largest markets for athletic equipment are the U.S. at 50% of the market share, Western Europe at 25% of the market share, and Japan at 10% market share. An industry that had one primary market segment consisting of the serious male soccer and track athlete has now separated into several market segments containing the professional athlete, the amateur athlete, the fitness group (aerobics and cross-training), and the mass consumer who is not interested in athletics but enjoys the comfort of wearing athletic apparel. Barriers to Entry The footwear-manufacturing segment has the highest barriers to entry out of the three sporting good industry segments. In the U.S. 53% of the footwear market share is controlled by two companies- Nike and Reebok. Adidas came in at 7th place with only 4% of the U.S. market share. The competition in the industry is fierce, requiring a substantial investment in marketing to establish a successful brand. Research and development expenses are high requiring a substantial investment to develop a shoe that could provide the necessary level of comfort to compete with companies like Nike and Reebok. Substitutes ForShow MoreRelatedNike Report13324 Words   |  54 Pagesfew of its competitors; Adidas-Salomon and Reebok, Sketchers, and K-Swiss. A brief overview of Nike and its competitor’s company profiles, brand portfolios, and current developments will provide an understanding that leads to an analysis of the external environment. This analysis further discusses the geographic distribution, general environment, industry environment using Porter’s Analysis, Nike’s competitor analysis, its dominant economic characteristics, driving forces, and key success factorsRead MoreCase Study148348 Words   |  594 Pages978-0-273-73552-6 (web) All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in an y form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers orRead MoreStrategic Marketing Management337596 Words   |  1351 PagesStrategic Marketing Management Dedication This book is dedicated to the authors’ wives – Gillian and Rosie – and to Ben Gilligan for their support while it was being written. Acknowledgements Our thanks go to Janice Nunn for all the effort that she put in to the preparation of the manuscript. Strategic Marketing Management Planning, implementation and control Third edition Richard M.S. Wilson Emeritus Professor of Business Administration The Business School Loughborough University