Categories: Strategy

EFE Matrix of Adidas

THREATS Competitor Companies 0.04 4 0.16 The companies like nike and puma are the major threat for the company because they are the strong manufacturers of sports goods and commodities.

Rise in oil prices 0.06 3 0.18 The rise in the oil pricing is also the factor of decline because of which price for production also increases as well as the transportation expenses. Weak distribution channel 0.05 3 0.15 The company has very weak distribution channels as compared to its competitors that are puma and nike and it has diverse relationship with the many of the outlet brands. No major competitive edge 0.07 2 0.14 For the company Adidas, it has no competitive advantages to boost its sales. Low in revenue generation 0.07 3 0.21 The performance of the Adidas Company is not much efficient as compared to Nike as its employees revenues are 39 % better than Adidas. Affordability 0.04 3 0.12 The products of the company are very common now and their original products are very expensive that atre not affordable by most of the people. Competitors action 0.03 3 0.09 The strongest competitor of the company that is nike is putting more emphasize on the product line relating the footwear which is helpful in enhancing the market. Negative branding and illegal activities 0.02 3 0.06 The illegal activities performed by different sorts of brands are making negative image and impact on the company. Total Weighted Score 1 2.75

Conclusion

Based on the above calculations it has been concluded that the company’s Total Weighted Score is 2.75which shows that somehow company has been successful in utilizing its opportunities and minimizing the threats around it.