Assignment 2 Situation Analysis

Based on what you’ve learned so far in this course, regarding the 5 Cs, 4Ps, and STP, complete the assessment questions below. Submit the completed template in the Week 10 assignment submission link.

Name:Professor’s Name:Course Title:Date:Company/Brand Selected (Fiat Chrysler, IBM, Burger King, or Old Spice): Adidas

1. Customers

Who are the current customers/users? Include information related to demographics, psychographics and buying behavior, price sensitivity, customer satisfaction and loyalty.

For example: You could include information such as whether the brand is trying to appeal to a certain social or cultural group and how customers perceive the product/brand. It’s also possible to include demographic information related to: age, educational attainment, geographic area, gender, race, employment status and/or home ownership. Additionally, you can discuss psychographic information which includes those attributes that relate to personality, values, attitudes, interests, or lifestyles of people. This area is also related to situational life stages as well as customer beliefs, and how customers want to see themselves and be perceived. Some examples of psychographic groups include video gamers, soccer moms, sports fanatics, hipsters, and single moms. Life cycle stages include: retirees, new homeowners, college students and new parents. Be aware that some products/brands may appeal to a wider customer base than others.

[Insert response]

The company’s target strategy is differentiated, and targets children as well as adults who are interested and have passion for sports and fitness. Its main target customers are of ages between 13 and 40 years, however, majority of its customers are 15 – 30 years and hails from the upper middle class and or class of luxury customers. The company uses benefit and user-based strategies in creating distinctive image of their products in the minds of its customers. It emphasizes on quality thus retaining and satisfying its customers and building a trusted brand. Adidas products are mainly bought by sport people and classy middle class.

Adidas uses premium pricing strategy; it gives customers incentives in buying their products as compared to their competitors. Customers believes that the higher the price, the better the quality. Customer loyalty is achieved by creating brand desire in their customers “consumer-obsessed”.

What do the customers buy/use?

[Insert response]

Adidas deals with apparel (Pants, jackets, t-shirts, hoodies and leggings for both genders) and sportwear with more focus on football kits as well as associated equipment. Other sportwear that they make includes; golf, running, lacrosse, cricket, tennis, skateboarding and baseball

It also makes and designs accessories such as sandals, watches, bags, baseball caps, mobile accessories and eyewear. It also makes female and male perfumes, deodorants, lotions and aftershave.

What changes can the company/brand expect in the future? How can the company/brand better serve its customers?

(For example, you could include information about the current demand for the product/brand, and how it is changing or has changed including possible variations or modifications in the future. You may also determine/discuss if the brand/company can take advantage or has taken advantage of the changes. It’s also possible to consider and talk about whether the product/brand is a less expensive substitute, perhaps, or maybe a product/brand that is easier to use with more features.)

[Insert response]

The company is facing strong competition from Nike in terms of market competition. Therefore, it is crucial for the company to up its game and rebrand itself. The following are changes that the company can make to retain and even acquire new customers.

Multi-brand approach; this will make the company more competitive and improves on their brands.

Broader distribution; broadening the distribution of its products will increase the market base and sales as well as the in-store experience.

Adopting differentiation strategy; the company has huge and grip on market in casual wear and basketball product and therefore, diversification of products will tremendously improve on the company’s market share and even make it be competitive in India, by making cricket equipment and apparels.

Opportunities (Make sure you label why you call each item an opportunity):

1. [Insert response]

E-commerce/marketing and web development; putting in place a marketing and e-commerce platform will improve its sales and market share.

2. [Insert response]

Growing and improving market for sports apparel; the company should strategize in producing most of the sport apparels, such as cricket and be I a position to compete with Nike in India

3. [Insert response]

Joint venture and partnering with fashion designer; this will help in increase their market share and female participation in sports

Threats: (Make sure you label why you call each item a threat):

1. [Insert response]

Instable economic environment; the current economy is not stable and can affect its sales, especially from middle class economy customers

2. [Insert response]

Stiff competition in terms of supply and chain management; the company faces stiff competition in distribution of its products, the company needs to work on chain management so as to reach a wider area.

3. [Insert response]

Competition from Nike; Nike has positioned and made its reputation in sports industry, therefore, adidas has an uphill task in matching and even improving past Nikes expectations.

2. Company

This Section Discusses what the brand is currently.
Identify strengths and weaknesses of the company/brand as it exists today, providing at least 3 strengths and 3 weaknesses. What does the company/brand do well and not so well at this very moment?

List 3 Strengths (Make sure you label why you call each item a Strength):

1. [Insert response]

Brand reputation and recognition; the company’s brand is well recognized and loved due to quality of their products

2. [Insert response]

The company produces a range of products (shirts, shoes, perfumes, bags and toiletries) and makes it competitive among its competitors.

3. [Insert response]

Adherence to environmental regulations and laws; the company a bides and obeys environmental laws and therefore, it has not been accused of pollution thus avoiding law suits

List 3 Weaknesses: (Make sure you label why you call each item a weakness):

1. [Insert response]

Online stores; online stores are only limited to USA and some parts in Europe, this limits their market share and distribution of its products.

2. [Insert response]

Ineffective customer centers; most of the customer centers are not fully functional especially with the e-commerce

3. [Insert response]

Pricing system: the price is inter-woven to the high quality; the company can consider producing quality products at a fair price so as to compete successfully with its peers.

This Section deals with what the company/brand needs to become.

How can the company/brand improve its weaknesses and maintain or grow its strengths? Suggest how the company/brand can improve upon the things it does well and not so well.

[Insert response]

The company needs to master every trend: Adidas should muster the trends in their customers and their buying behaviors, purchasing rhythms and budgets. E-commerce should be improved to cover more areas and putting in place strategies to ensure customer centers are effective and fully functional.

Other strategies include;

3. Context

  • Developing new markets with intensive advertisement
  • Developing new distribution strategies and channels
  • Innovation and diversification (Hockey and Cricket)
  • Relevant modification of products
  • Exploring casual footwear

Define the current business environment. Include information about political, legal, economic technological and societal factors that may influence sales.

For example: You could perhaps discuss the current trends and conditions for this Industry and for the brand. It’s possible to include information about how the Economy affects this industry. This could include changes in income: are people losing jobs, or getting paid more? Changes in spending habits could be considered as well. Other factors such as use of public transportation and shopping online may also be relevant. Whether or not the product is high-tech, or state-of-the-art can be also be included in describing the context. For example, are there other companies producing new versions of the product? Is the market changing quickly? How is technology affecting this product or service? Are there any new laws that may affect the brand?

Political Environment: [Insert response]

Political Environment

The political activities of a country affect international markets. Some countries experience political instabilities making market penetrations difficult. Adidas enjoy the peaceful and the friendly nature of Germany that has enabled it to expand its markets globally.

Legal: [Insert response]

Legal Environmental

Different countries also have unique laws governing business operations. International businesses must understand these laws to avoid being fined in case of non-compliance. International markets may group themselves in terms of units or regional blocks which makes it important to understand regulatory rules of the different countries.

Economic: [Insert response]

Economic Environment

The economic environment comprises of factors such as levels of income, tariffs, interest rates, purchasing power, taxation and exchange rates. Such factors affect firm profits. The fluctuations in exchange rates affect international businesses such as Adidas. Since Adidas financial transactions are denominated in Euro, other countries have to translate their currencies to Euro implying low international sale value from such countries. Adidas products are also highly valued as compared to other brands. This means that they require a high purchasing power that is found such continents as Europe and America. Eu countries eliminated tariffs making it easier for Adidas to make more profits from these countries.

Technological: [Insert response]

Technological Environment

Business Technology means machines and methods applied in business processes. Levels of technology differ among countries and international firms need to take this into consideration. Adidas, being a German company, has enjoyed the best of technology found in the country. This has made it to produce high quality products that are accepted globally. Technology has enabled low production costs due to automation of processes. Adidas produced most of its products locally in order to mitigate technological risks in less developed countries.

Societal/Sociocultural: [Insert response]

Social-cultural Environment

The social-cultural environment comprises of various factors including population, social institutions, levels of education, language difference, religion and social values. Such factors differ among countries. Adidas, being an international company has to deal with the different forms of social-cultural environment. The trends in population affects corporate strategies. The population sizes influence market value. Adidas had intensified markets in India and China where population sizes are quite big therefore increasing market potential. Language diversity affects human resource strategies. Being a German company, Adidas native German speaking employees for home market. In order to meet the global market demands, international firms must have diverse workforces to counter the challenges presented by social-cultural environment.

4. Collaborators

Define the business partnerships. Does the company/brand have any current partnerships? What other company/brand may be a good partner for them?

Current Partnerships and the discussion on them: [Insert response]

Current Partnerships

Adidas currently partners with Th e x Games, Mavic, AC Millan, Real Madrid, Beyern Munich, Adidas Golf, Taylor Made and Maxfli. Adidas has a transparency approach in approaching partner, and this what makes them retain most of the partners to improve in their performance and profits.

Proposed Partnerships and the discussion them: [Insert response]

Partnering and partnership improves sale through marketing and revenue. To improve marketing, adidas can partner with musicians and other celebrities and athletes to make them brand ambassadors. Recently adidas partnered with Beyonce in crating signature brand and lifestyle.

5. Competitors

Who are the main competitors? Label and discuss the top three competitors and why you consider them a competitor.

Competitor 1: [Insert response]

Nike, Inc.

Nike is the most popular sportwear manufacture and, therefore, its brands is recognized and trusted by many. Its products are of high quality. Adidas will have an uphill task in beating Nike and even getting a share of its customers.

Competitor 2: [Insert response]

Callaway Golf Company

The company mainly deals with golf apparels and accessories. Due to their quality products it has been able to delay adidas entry into golf manufacturing of apparels and accessories. It has been able to deny adidas reasonable market share and has managed to keep it out of the sport

Competitor 3: [Insert response]


Puma is known for its arrays of quality products at a fair price. Its brand is sold under Tretorn, puma brands and Cobra Golf Labels, which makes it have a large market base as well as penetrating other markets. The sibling rivalry between adidas and puma, keeps puma on toes and makes it creative and innovative and therefore adidas will face problems in terms of market share with puma

6. Recommendations

Based upon the analysis you just completed in this worksheet, what are three (3) key recommendations that you could pass along to Management regarding the future direction of the company you selected? Discuss why you have created these strategies and why you think they should be undertaken and work for the business.

1.Recommendation #1 and the Defense of the Recommendation: [Insert response]

Work on pricing strategies

The brand value/price should be carefully decided in such a way that it will harmonize the psychology of its customers. Making prices fair while retaining quality will increase customers and market base. As compared to competitors, their prices are a bit high. Harmonizing prices will ensure affordability and frequent purchases.

2. Recommendation #2 and the Defense of the Recommendation: [Insert response]

Place or distribution

Adidas needs to work on their distribution and making sure that they penetrate t other markets and places. Its distribution channels should be perfected and made efficient to facilitate flow of its products. The number of outlets should be increased to cover a wider market.

3. Recommendation #3 and the Defense of the Recommendation: [Insert response]


Online purchasing is the current and future platform in sales, it helps in reaching a wider customer base. Internet is now accessible to many and therefore by ensuring that their e-commerce platform is effectively function and downtime minimized will improve sales. E-commerce platform should be redesigned to include other areas with potential customers not only Europe.

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