PESTEL, 5 Porter's Forces and SWOT Analysis - Adidas: Understand internal and external forces

Extract

[...] Whereas nowadays, the French attaches more and more importance to local manufacturing, a pair of Adidas shoes has already travelled all around the world before finding itself in French's feet. Counterfeit shoe is also a developing threat because they can damage Adidas's corporate image. Conclusion To conclude, Adidas has a strong reputation and brand value in French and international sports market. Thanks to that this company keeps trust of customers all over the world. But although adidas is a universal brand of excellence and quality, the competition remains stiff. That is why Adidas must constantly think about new strategies to maintain its leadership. [...]

[...] PESTEL Porter's Forces and SWOT Analysis - Adidas: Understand internal and external forces Adidas, a German multinational firm founded in 1948, is famous for its sports items and dominates the sneakers market around the word. However relevant is the idea that Adidas is invulnerable through its leadership, I wish to show that many internal and external forces impact this shoe brand. First, I will deal with a PESTEL, then Porter's 5 forces analysis based on the French market. Finally, I will present a SWOT analysis. [...]

[...] This must be considered by adidas, especially in its advertising. For example, in 2012 adidas was unable to market a pair of shoes that were linked to the ankle evoking slavery which was frowned upon by society. From a demographic standpoint, people aged 65 years or over is increasing in the EU and represents of the French population in 2021, January 1st. If such a trend persists, it could impact Adidas, which sells mainly to young people and who should then review their strategy. [...]

[...] On the other hand, the power of buyers like you and me is lower because Adidas receives fame and customer loyalty. And what about the level of competition? Actually, there is stiff competition in the sneakers market, but Nike is the first competitor of Adidas. Nike positions itself as the world market leader in sneakers. In addition, the sports market is subject to a fashion effect and on this side, Nike is ahead of Adidas by offering much more fashionable items. [...]

[...] In addition, the cancellation of the Paris marathon normally scheduled for November 2020 disrupted Adidas marketing plans. Indeed, this shoe brand though of promoting its latest model of shoes at that time. But social factors do not just work against the shoe brand. Indeed, more and more people are concerned about their health and realize that practicing a sport is a benefit for mental and physical well-being. We also note a lifestyle change given that several people have started running since the first lockdown. [...]