Scale of Adidas
-Strong success in Europe
-Recent selling of subsidiary " dog” Salomon
-In many invents may be the biggest sponsor
-Strong managing team.
-Strong control over its own distribution route.
-In the soccer industry, it has a castle.
-No poor reputation like child labour or environment pollution. -Diversity and variety in items offered.
-Strong financial position with minimal long term debts
-Innovative models in shoes enabling consumers to design their particular shoes online -First movers advantage in e-commerce Weaknesses
-American players endorsed by simply adidas aren't as well-liked as Nike's -Nike attaining ground upon European sports market
-Public dissent over use of sweatshops
-E-commerce is limited to UNITED STATES
-Direct sale to buyers is creating conflicts having its own shops. -High rates in some products.
-Online customer satisfaction not ‘helpful' or easy to find.
-Acquisition of Reebok.
-Growing durability in the game of golf industry through TaylorMade
and recent acquisition of Maxfli
-Growing earnings from starting of very own retail stores.
-Collaborate with other trusted online retailers to offer Nike products. Hazards -Foreign exchange rates will mean loss of genuine profits. -Nike's strong status in the boots and attire industry. -Continuing challenges in import/export duties.
As mentioned on their website Adidas has been a leader in Europe for a long time and have been in a position to become secure there. An additional strength is that Adidas-Salomon makes high-performance shoes. They have been capable of attract down and dirty athletes because customers due to efficiently produced shoes (adidas. com). Nike recently announced that it will be offering its Salomon brand to Amer Sports Corporation to get $624 mil. Salomon was originally obtained by the Nike Group in 1997 because it paid $1. 4 billion dollars for Salomon and its subsidiaries, including the game of golf brand TaylorMade and cycling brand Mavic. The sale will incorporate the brands and subsidiaries Salomon, Mavic, Bonfire, Arc'Teryk, and Cliché. Herbert Hainer, Adidas-Salomon Leader and CEO, stated that " Salomon has been a great member of each of our group. Yet , we have made a decision that now is definitely the time to focus even more upon our main strength in the athletic shoes or boots and attire market in addition to the growing golf category” (Bloomberg). This maneuver will allow Nike to eliminate itself from the recently slouching Salomon company, which posted a 1 percent drop in revenue and also a 74 percent drop in operating revenue in 2004. The sharpened decrease in working profit is due to recent reorganization, rearrangement, reshuffling that decreased French development of Salomon products via 55 to 35 percent with new production taking place in Romania and Chinese suppliers. News with the sale spiked Adidas' stocks up 9. 2 percent, reaching its highest reason for six years, while Mechant Sports shares gained 7. 6 percent.
An important weakness with the Adidas company is that they are third in the American marketplace for athletic footwear sales. Another some weakness is Adidas' recent along with the sports shoe market. Nike took over first place in the European sports shoe market with its success of the Surroundings Zoom Total 90. Adidas' final weak point that must be mentioned is their particular use of sweatshops. There were accusations of inhumane conditions in Adidas' Asian factories in 2000. However , Adidas-Salomon maintained that they had been trying to correct the conditions.
Nike has a huge opportunity in its horizon. The purchase of Reebok should allow nike to have increased access to the American industry, where Reebok is currently second in the athletic footwear market. Another opportunity for adidas-Salomon may be the possible development of their TaylorMade brand. Even though adidas happens to be selling the Salomon company for nearly 50 % of what it paid for it in 97, the deal is not sold with the golfing brand TaylorMade. TaylorMade-adidas the game of golf has a good hold on the golf sector and was ranked since the number one drivers on the Combined...