Adidas Case Study: SWOT analysis and Michael Porter's Five Forces Model, including strategic recommendations

NIKE Inc. has been the worldwide leader of athletic shoe sales for many years now. The company’s successful brand image combined competition and enablement for the competitive, athletic user. Nike has to modify their brand to a focus of excitement and freedom and not just competitiveness. By collecting and studying an assortment of material we could be able to understand where NIKE is currently placed in the athletic shoe industry compared to their competition, and how they will be able to adjust their brand focus so it can be more effective in the future. These adjustments can help NIKE reach the more casual group of urban runners and ultimately increase the sales forecasts, while still controlling a percentage of the market for athletic shoes.

(ii) Moreover, After 35 hardly people tend to use specialist sportswear. We have decided to divide this SSWD

The concept of market structures and competitive strategies are important when attempting to compete in any market. Understanding what market structure your product falls under can help companies develop better competitive strategies and identify potential for loss and gains. The athletic footwear industry in the United States is highly profitable and continuously growing. In this paper I will identify market structure of the athletic footwear industry, the major retailers, and competitive strategies that can be used to maximize profits.

Obviously, there is a big number of driving forces in the athletic footwear industry. Each of these driving forces has different impacts—some of them can have a more considerable effect than others on figuring out how much cross-company differences influence market shares and a number of units sold. The first line of most influential factors includes comparative prices, S/Q ratings, and a number of models offered among the footwear competitors. These three most important competitive forces affect customer decisions of which athletic footwear brand to choose. Furthermore, the decisions of customers whether to purchase one brand or another are also influenced by such forces as advertising, celebrity endorsements, the number of independent retail

In using Porter’s five-force analysis, we can discover how strong the competitive forces are within the sports apparel and footwear industry. The five-force analysis involves; rival sellers, threat of new entrants, substitute products, supplier bargaining power and buyer bargaining power, which we will explore to determine the attractiveness and intensity of competition within this market.

In the last 30 years innovation and product development in sports has seen consistent growth even with the micro and macro-economic differences. One of the reasons this happened is because most sports enterprises have smarted up their way of product development through paying close attention to the relationship between sports consumers and product development.

The sportswear industry is growing and becoming more competitive so the will be new producers and entries in the market with new ‘’aces up their sleeves’’. More competition in the market

Changes in the level of sports participation among individuals in the US influences interest in sports apparel. As time spent on exercise increases, consumers are more likely to purchase apparel that has a specific athlete's name or team's logo distinctly shown on the item. Participation in sports is anticipated to increase over 2015. The Licensed Sports Apparel Stores industry has grown at a healthy pace during the past five years as sports leagues and franchises have increasingly sought to capitalize on their established brands. Following the recession, industry retailers barely missed a step; industry revenue increased 8.0% in 2011 and was expected to increase at an average annual rate of 6.1% during the five years to 2015. The continual popularity of professional sports, has enabled steady sales through all stages of the economic cycle. Revenue growth is expected to increase an additional 8.1% in 2015 to $8.3 billion.

1. Evidence from case: Other companies selling similar athletic wear such as, Adidas, Reebok, nike Etc.

Threat of New Entrants is low since the growth rate is expanding in the athletic apparel market and existing industry members are actively reaching into product segments or geographic areas where they do not have a strong presence. There is an entry barriers for new entrants in building a retail distribution, a large reliable supply chain, and securing contracts for endorsements and promotions. The other companies are established and credible brands that work on global scales. A smaller company would most likely not gain enough traction in this already competitive market to stay relevant even if they selected niche markets since the established companies cater to such a wide demographic of customers. (David 144).

The athletic footwear industry includes all producers of shoes designed in an athletic style or for an athletic use. We define the active footwear industry as an industry that manufactures shoes for active lifestyles. The primary focus of this analysis is on the United States market as it represents roughly 32% of the overall footwear market (PRWeb,

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

Also sport has been emphasized a lot lately as recreational activities to promote healthy life. Product segmentation could also create new market segments within the existing ones. For example, running shoes designed especially for rough surfaces or mountain terrains, or with reinforced ankle protection, or with some added features such as anti-bacterial insole.

1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the

Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.