Adidas is one of the world’s leading sports brands, offering a wide range of products,

including shoes, clothing, and accessories for various sports and activities such as
running, soccer, basketball, golf, and training.
Adidas operates under a multi-brand strategy, with several brands in its portfolio:
1. Adidas: The core brand is known for its performance and sports-inspired
products.
2. Adidas Golf: This brand focuses on golf apparel, footwear, and
accessories.
3. Runtastic: A mobile fitness company acquired in 2015, offering fitness
tracking apps and services.
Adidas operates through a global network, selling its products in more than 160
countries. The company has a combination of owned-retail stores, e-commerce
platforms, and third-party retail partnerships, providing a solid distribution network to
reach its customers. Adidas has also built a strong presence on social media and
collaborates with various celebrities and sports icons to promote its products.
The company’s mission is to become the best sports company in the world by
adhering to a strategic framework called “Creating the New.” This framework is built
on three pillars:
1. Speed: Accelerating processes and decision-making to become more
agile and responsive to consumer needs.
2. Cities: Focusing on key cities like New York, Los Angeles, London,
Paris, Shanghai, and Tokyo, which influence global trends.
3. Open Source: Collaborating with consumers, athletes, and partners to
create innovative products and experiences.
Adidas is committed to sustainability and strives to minimize its environmental
impact through initiatives like using recycled materials, reducing carbon emissions,
and promoting fair labor practices in its supply chain.
As of 2021, Adidas was the second-largest sportswear manufacturer globally, with a
strong market presence and a growing focus on innovation and sustainability.
Financial Performance FY22: The company reported sales were EUR 22,511 million
for the full year compared to EUR 21,234 million a year ago. Net income was EUR
612 million compared to EUR 2,116 million a year ago.

Strengths
1. Strong brand recognition: Adidas is one of the most recognizable brands
in the world, with its iconic three-stripe logo and numerous product lines.
This strong brand recognition helps attract and retain customers.
 2. Diverse product portfolio: Adidas offers a wide range of products
catering to various sports, activities, and lifestyle segments. This
diversity allows the company to serve a broader market and reduce
dependence on a single product category.
3. Strategic partnerships and endorsements: Adidas has established
partnerships with major sports teams, athletes, and celebrities, which
helps enhance brand visibility and credibility. These collaborations also
enable the company to create innovative and fashionable products,
appealing to both sports enthusiasts and style-conscious consumers.
4. Innovation and technology: Adidas continually invests in research and
development to create innovative products utilizing cutting-edge
materials and technologies. This focus on innovation helps the company
maintain a competitive edge and cater to evolving consumer preferences.
5. Global presence and distribution network: Adidas has a strong global
presence, selling its products in more than 160 countries through a
combination of owned-retail stores, e-commerce platforms, and third-
party retail partnerships. This expansive distribution network allows the
company to reach a broad customer base.
6. Digital transformation: Adidas has successfully adapted to the growing
digital landscape by investing in e-commerce, digital marketing, and
data-driven decision-making. This digital focus helps the company stay
relevant and maintain strong customer engagement.
7. Sustainability and social responsibility: Adidas is committed to
sustainability and social responsibility, implementing initiatives to
reduce its environmental impact, promote fair labor practices, and
support local communities. These efforts help build consumer trust and
enhance the company’s reputation.
8. Financial performance: Adidas has demonstrated consistent financial
performance, with growing revenues and profitability. This financial
stability allows the company to invest in growth initiatives and weather
market challenges.

Weaknesses
1. Dependence on the sports market: Adidas primarily focuses on the sports
apparel and footwear industry, which makes it vulnerable to shifts in
consumer preferences or economic downturns affecting the industry. The
 company’s reliance on sports-related products could limit its ability to
adapt to changes in the market.
2. Intense competition: The sports apparel and footwear market is highly
competitive, with solid rivals like Nike, Puma, and Under Armour. This
fierce competition can lead to pricing pressures and challenges in
maintaining market share.
3. Supply chain complexities: Adidas operates a complex global supply
chain involving numerous suppliers, manufacturers, and distributors.
Managing this network can be challenging, and any disruptions or issues
in the supply chain can negatively impact the company’s operations and
reputation.
4. Outsourced manufacturing: Adidas relies heavily on third-party
manufacturers in Asia for its production needs. This reliance on
outsourced production can expose the company to risks such as labor
disputes, political instability, or supply chain disruptions, potentially
impacting product availability and quality.
5. Counterfeit products: Like other leading brands, Adidas faces the
challenge of counterfeit products, which can damage the brand’s image,
erode customer trust, and lead to lost sales.
6. Slow response to fast-fashion trends: While Adidas has made efforts to
increase its agility and responsiveness to consumer needs, it still
struggles to keep up with fast-fashion trends and the rapidly changing
demands of the market. This lag can result in missed opportunities and a
loss of market share to more nimble competitors.
7. Limited presence in emerging markets: Although Adidas has a robust
global presence, its penetration in emerging markets like India, Brazil,
and Africa remains limited compared to its competitors. This little
presence could hinder the company’s ability to capitalize on growth
opportunities in these regions.

Opportunities
1. Expansion in emerging markets: Adidas can tap into the potential of
emerging markets like India, Brazil, and Africa, where there is increasing
interest in sports and fitness activities. Developing tailored strategies for
these regions and expanding its retail presence can help the company
capitalize on new growth opportunities.
2. E-commerce and digital transformation: The growth of e-commerce and
digital technologies presents a significant opportunity for Adidas. The
 company can better understand consumer preferences and drive sales by
investing in its online platforms, enhancing the digital customer
experience, and utilizing data analytics.
3. Product diversification: Expanding the product portfolio to include new
categories or entering adjacent markets, such as athleisure or outdoor
sports, can help Adidas cater to a broader consumer base and reduce its
dependence on the sports market.
4. Collaborations and partnerships: Developing strategic collaborations
with celebrities, influencers, and other brands can help Adidas create
innovative and fashionable products that appeal to a broader audience,
boosting brand visibility and sales.
5. Sustainability and circular economy: With growing consumer awareness
and demand for eco-friendly products, Adidas can strengthen its focus on
sustainability and develop products based on the principles of the
circular economy (e.g., using recycled materials and designing products
for easy recycling). This approach can help the company differentiate
itself and cater to environmentally conscious consumers.
6. Personalization and customization: Offering personalized and
customized products can help Adidas create unique value propositions
for consumers, fostering brand loyalty and driving sales. Utilizing
technologies like 3D printing and AI can enable the company to deliver
customized products at scale.
7. Technological innovation: Investing in cutting-edge materials and
technologies can help Adidas develop innovative products that improve
performance and comfort, setting the company apart from its competitors
and reinforcing its position as an industry leader.
8. Women’s segment: The women’s sports apparel and footwear market is
proliferating, presenting an opportunity for Adidas to develop targeted
products and marketing strategies that cater specifically to this segment,
capturing a larger market share.

Threats
1. Intense competition: The sports apparel and footwear industry is highly
competitive, with major players like Nike, Puma, and Under Armour
striving to gain market share. Intense competition can lead to pricing
pressures, impacting Adidas’ profitability and market position.
2. Economic downturns: Economic recessions or slowdowns can reduce
consumer spending on discretionary items like sports apparel and
footwear. This can result in decreased sales and profitability for
Adidas.
3. Changing consumer preferences: Shifts in consumer preferences
towards new brands or product categories can threaten Adidas’ market
position. The company must continuously innovate and adapt to
changing consumer demands to maintain its relevance and competitive
edge.
4. Supply chain disruptions: Adidas relies on a complex global supply
chain, and any disruptions caused by natural disasters, geopolitical
tensions, or labor disputes can negatively impact its operations,
product availability, and overall business performance.
5. Counterfeit products: The prevalence of counterfeit products can
damage Adidas’ brand reputation, erode customer trust, and result in
lost sales. The company must invest in measures to combat counterfeit
products and protect its intellectual property.
6. Regulatory and compliance issues: Adidas operates in multiple
countries, subjecting it to various regulatory requirements and labor
standards. Non-compliance with these regulations can result in fines,
legal issues, and damage to the company’s reputation.
7. Currency fluctuations: Adidas is exposed to currency fluctuations that
can impact its financial performance as a global company. Sudden
changes in exchange rates can affect the company’s revenues, costs,
and profitability.
8. Environmental and social concerns: Growing awareness of ecological
and social issues can influence consumer behavior and purchasing
decisions. Suppose Adidas fails to address these concerns effectively
or is perceived as not taking adequate action. In that case, it may face
backlash from consumers and stakeholders, potentially impacting its
brand image and sales.