External and internal environments

Employees

• when it comes to internal environment nothing is more important than employees. Adidas has never had any backlash from their employees and have a good track record

• Rivals like Nike have been boycotted at times by consumers because of their outsourcing ways and cheap labor in third world countries. Adidas has not ran into that problem.

Technology

• Stores in America as well as in Europe pay their employees at stores and manufacturing areas fairly which creates a good environment to work in

• Technology plays an important role in the advancement of Adidas because it enhances advertisement and consumer connection

• The growth of technology has made it easier for people to purchase goods online and have it delivered in a timely manner

Social Values

• Technological growth can lead to better designs of shoes and merchandise which can also give more options to customers to customize shoes they buy

• Adidas must be aware of the social values and the current ethical issues of the world

• Technology increase efficiency of operations with saving time and physical space

Demographics

• Representative of their brand must have no legal issues and if one of their athlete representatives commits and egregious act he/she must be reprimanded from the brand

• In the shoes and apparel business it is important to understand demographics and target market. Without a clear understanding of who and where their customers are it would be difficult to compete in the industry

• Adidas is mainly an international brand do to the fact they started out producing soccer cleats. Their biggest target market is in Europe and specifically Germany

• " Adidas plans to bring more American flavor to products" said Mr.king Adidas CEO, Wall street Journal.

• Adidas must also meet the moral values of their customers who have a wide range of cultures since Adidas is a global brand

• Adidas mainly targets athletes and people looking for sneakers to exercise in but they have also crossed over into fashionable shoes with the collaboration of Kanye West and the Yezzy shoes that are a hot item at the moment

• The employes must also be treated fairly, in the stores, in the warehouses and in the manufacturing stages or it could lead to backlash from the public and the workers themselves

- Economy

• The economy plays a big factor in the sales of Adidas merchandize, If the economy is not stable the consumer rate will decrease

• Revenue and profit loss due to digressing economy can lead to lay offs of employes

• A financial crisis can lead to cuts in market research and development, leading to disintrest from consumers

Rivals

• Adidas main competitors are Nike, New Balance, Sketchers and Reebok

+ Economy

• A declining economy can affect the stocks and dividends of Adidas

• Adidas specialization is in athletic shoes and at the current moment Nike holds the top spot in sales. With Adidas being number two on that list that means Nike is their biggest competitor

• A prospering economy can help Adidas grow as a company and increase their profits

• Economic growth would lead to more investors in Adidas as well as bigger brand ambassadors and athletes

• Nike maintains a bigger market in the U.S because they focus on satisfying sports that are popular in the states. Adidas main focus has been soccer since their creation which hurts them in the U.S market

• cuts backs on marketing and employes can be followed by bad quality of goods and services

• When Adidas launches future projects and further research they are depending on the current state of the economy

• Adidas has been putting more effort into getting popular athletes to represent their brand to compete in sports they do not specialize in. Athletes like Derek Rose and Robert Griffin are helping increase their popularity

• An economic boom would boost the sales of Adidas goods which leads to bigger investments in market research

• Adidas has also relied on the sponsorship of colleges and high schools to wear their product and increase its popularity to compete with Nike

Media

• Media can play a role in the popularization or demise of the Adidas brand. If the media supports the brand sales can increase

• Adidas can use the media to their advantage by making sure they uphold on their values and stand by their customers on ethical issue that may arise. By showing their consumers they have a value to their brand can lead to media support

• The media can help better connect the brand to the consumers

• Social media outreach is important because it gives a chance for consumers to give feedback and have that emotional connection with the brand which can increase loyalty

Adidas External and internal environments