Adidas Entering Esports@@@

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Algoma University *

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ADMN 4606

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Marketing

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Jan 9, 2024

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pptx

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14

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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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