TOWS and SWOT analysis on Adidas

During the last group meeting we analysed Adidas using a TOWS matrix and SWOT analysis. We did this in order to help us construct our info graphic on our chosen brand. When constructing the TOWS matrix we considered a variety of strengths, weaknesses, threats and opportunities of Adidas.

In the strengths section of the TOWS matrix Jack discovered one of the strengths of Adidas was the brand loyalty. Adidas has a large number of customers who will make repeat purchases on a particular product. Adidas has an extensive product portfolio and because of this Adidas has moved into several different sporting markets which allows it to supply a wide range of products.

In the opportunities section of the TOWS matrix James pointed out that Adidas has the possibility of expanding into new markets. For example they could start providing sports equipment for a market they are not currently in. This would be a strategic decision knows as new product development as well as new market development. Yes this could be expensive in the short run but over time the potential for sales and profit to increase are of greater opportunity. James also suggested market growth could be another opportunity because Adidas could potentially increase its market share in sports where they are not at the forefront. As a group we discussed what impact lifestyle and social factors have on Adidas. We came to the conclusion that by increasing an individual’s participation in sport this could enhance Adidas’ as a brand as people need to invest in sport equipment.

In the threats section Tiza pointed out to the group that competition is one of the biggest threats. This is because new entrants can enter the market which would therefore increase the amount of business Adidas would be competing with. The state of the economy is a challenge for every business. As a result of the recession we are currently in, consumers spending power has seen a dramatic drop. Some consumers will look for alternative brands at cheaper prices. As Adidas are quite high end in terms of pricing this could impact on them heavily.

Rob identified weaknesses of the brand. Rob suggested that Adidas have issues with their advertisement agencies as they are considered not to be as a higher standard as some competitors. One of the most prolific female athletes who Adidas sponsor is Jessica Ennis- Hill. She has appeared in television commercials in recent times and will potentially help Adidas become more known by more consumers.