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BCG Matrix:

Boston Consulting Group (BCG) Matrix helps a company to know its


business much better with the high and low performances of its products in
the market.

Below I am listing five brands and the products that its company has, in
reference to the BCG Matrix:

“BCG Matrix of Adidas”

Adidas is one of the biggest names in the sports industry, and diversified
itself in apparels and footwear. It employs over 53,731 people across 160
countries, which produce over 660 million units of products annually, and
generate the sales of around €14.5 billion (2014 figures). Such figures can
clearly determine the success level and complexities of the Adidas Groups.
Still, they are successful in keeping the things, lean, fast and simple.
Adidas is the famous sportswear manufacturer across Europe, and
successful in positioning itself in the minds of consumers to such an extent
that everyone can easily recognize the brand by its logo. It has segmented
itself on the basis of psychographic, behavioral and demographic factors.
The Adidas Group owns four strong brands portfolios- Adidas, Rockport,
Reebok, and Taylor made. This is mainly done to target the different
segments of consumers. Its differentiated targeting strategy for targeting
the youth, adults and kids along with athletes, who possess the passion for
the sports and fitness is quite successful. However, mainly it targets the
customers of 13-40 years, but the majority of the consumers lie between
15-30 years, who belongs to luxury class or upper-middle class (Adidas,
2018). Here is the BCG matrix of the Adidas, which helps in determining
the company’s strategic position.
Cash Cows:
These products have high market share but low market growth, which
means they are generating the profit through sales in the current market,
but does not possess the potential of more growth and expansion in the
market. For Adidas, its clothing and apparels are the cash cow items, and it
is necessary for the Adidas to consider this point, and position itself well in
customers mind by targeting different geographic markets (Bagha, 2018).
Stars:
The products which have high market share and high level of market
growth fall in this category. Products are wisely categorized for this, as
these items are mainly bringing the larger portion of profit in the company,
but it is necessary for the company to reinvest in this category, and try to
bring more innovations and creativity for retaining the position. For the
Adidas group, Reebok and Adidas are the stars, as both have the stronger
market share; despite of the tough competition they are facing in the fitness
and sports industry, mainly its shoes. The competitors like Nike and Puma
are also fighting for the large portion of the market share, are the biggest
fear of the Adidas Group (Basin, 2017).
Question Marks:
The products categorize in this, are with low market share but high market
growth, which means if companies will pay more strategic attention to
them, they might bring the large volume of sales for the company, and
generate more profit. Taylor made and Rockport are the question marks for
Adidas, as both have very low market shares but still possess the potential
of growing more in the competitive market. Adidas needs to revise its
strategies for turning the potential into the benefits for the strategic
objective of the Group. In the product category, its Sports equipment are
the question mark and it need to pay attention to this domain (Bhasin,
2017).
Dogs:
These are the items with low market share and market growth, and mostly
stand at the breakeven point. Hats and sunglasses of Adidas are
categorized in this, because these are the less selling items of the
company, and many people are not interested in spending their money in it,
as they have better options in this category. Adidas is not successful in
beating the competition in this range, and still struggling hard to survive in
this category (Bagha, 2018).
References:

Adidas, 2018. About us. [Online], Available at: https://www.adidas.com/us,


[Accessed on: 29th May, 2018].

Bagha, S. 2018. BCG matrix. [Online], Available


at: https://www.slideshare.net/saeedbagha/bcg-matrix-64686190,
[Accessed on: 14th August, 2018].
Bhasin, H. 2017. Marketing Strategy of Adidas. [Online], Available
at: https://www.marketing91.com/marketing-strategy-of-adidas/, [Accessed
on: 14th August, 2018].

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