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Adidas Entering Esports: Past, Present, Future
Unveiling Strategic Moves in the Esports Industry
•
Name
•
Date
Vision:
Adidas envisions a world where sports transcend boundaries,
uniting people in the pursuit of excellence and individuality. Striving
for innovation and sustainability, our vision is to inspire and empower
athletes globally, fostering a culture that celebrates diversity,
creativity, and the transformative power of sport.
TOWS Analysis for Adidas in Esports:
Strengths (S)
Weaknesses (W)
1. Adidas boasts a globally
recognized brand.
1. Limited Esports presence poses a
challenge for market entry.
2. Extensive experience in
traditional sports markets.
2. Potential internal resistance to
change may slow adaptation.
3. Adidas enjoys a strong financial
position.
3. Existing competition in
traditional sports could divert
resources from Esports initiatives.
Internal Factors:
Opportunities (O)
Threats (T)
1. Collaborative opportunities with
Esports teams.
1. Intense competition from existing
Esports brands is a potential
challenge.
2. Adidas can capitalize on its financial
strength for strategic investments.
2. Rapid technological advancements
pose a threat to market dynamics.
3. Rising global interest in sports-
related fashion.
3. Shifting consumer preferences
represent a potential threat.
External Factors and Strategies:
SO Strategies (Strengths-
Opportunities)
WO Strategies (Weaknesses-
Opportunities)
1. Leverage global brand
recognition for quick Esports
market entry.
1. Form strategic alliances with
Esports influencers to overcome
limited presence.
2. Capitalize on financial
strength for strategic
investments.
2. Initiate internal training
programs to adapt to the
Esports landscape.
Strategies:
ST Strategies (Strengths-Threats)
WT Strategies (Weaknesses-
Threats)
1. Aggressively compete against
existing Esports brands leveraging
established brand loyalty.
1. Collaborate with Esports
experts to enhance market
understanding and mitigate
weaknesses.
2. Invest in R&D to stay ahead of
technological disruptions.
2. Diversify the product line to
adapt to changing consumer
preferences.
Factor
Description
Political
Adidas's strategic partnerships with influencers and esports
organizations align with the trend of non-endemic brands entering
the esports landscape, indicating a shift in political acceptance
and the mainstreaming of esports.
Economic
Economic stability and favorable exchange rates have enabled
Adidas to invest in esports partnerships and products, aligning
with the overall industry growth trend and capitalizing on a
positive economic environment for such ventures.
Sociocultural
Adidas's commitment to supporting the global gaming community
reflects an understanding of the rising sociocultural trend of
esports popularity and the company's proactive approach to cater
to the preferences of the 2.3 billion gamers worldwide.
Technological
Adidas's incorporation of AEROREADY technology in esports
apparel aligns with the technological trend of advancing features
in esports products. This underscores the company's readiness to
adapt to evolving technological trends within the esports industry.
PEST Analysis
Forces
Threat Level
Factors
New Entrants
Moderate -
High
•
Adidas faces a moderate to high threat from new entrants. While the existing brand recognition
provides an advantage, the Esports industry may witness emerging brands. Additionally, entering
Esports demands significant technological investments, posing a potential challenge.
Buyers
High
•
The threat from buyers is high, influenced by the extensive array of Esports options available.
Consumer power is substantial, and the low switching costs allow users to easily shift between
different Esports brands.
Existing Firms
Moderate
•
Competitive rivalry within the Esports industry is moderate, with both established and emerging
brands vying for market share. The industry's high growth rate continues to attract more firms,
contributing to the moderate threat from existing players.
Substitute
Industries
Moderate
•
Adidas faces a moderate threat from substitute industries, particularly traditional sports. The
competition arises not only from Esports brands but also from the enduring popularity of traditional
sports.
Suppliers
Low -
Moderate
•
The threat from suppliers is relatively low to moderate. Adidas can negotiate with various technology
providers, but there is a potential dependence on specialized Esports technology, which may impact
the bargaining power of suppliers.
Porter's 5 Forces Analysis
Navigating Competitive Dynamics in the Esports Arena
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Author:Roger A. Kerin, Steven W. Hartley
Publisher:McGraw-Hill Education
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing
ISBN:9780134149530
Author:Gary Armstrong, Philip Kotler
Publisher:PEARSON
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning