Theory SWOT analysis SWOT Analysis - theory SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities,

and Threats that are strategic factors for a specific company. A SWOT analysis should not only result in the identification of a corporations core competencies, but also in the identification of opportunities that the firm is not currently able to take advantage of due to a lack of appropriate resources. The SWOT analysis framework has gained widespread acceptance because it is both simple and powerful for strategy development. However, like any planning tool, SWOT is only as good as the information it contains. Thorough market research and accurate information systems are essential for the SWOT analysis to identify key issues in the environment. Internal and external factor The intention of any SWOT analysis is to separate the key environmental factors that are significant to the marketing plans of the business. SWOT clusters key portions of information into two main categories:

Internal aspects - The 'strengths' and 'weaknesses' internal to the business, i.e., its strategies and its position in relation to its competitors. External factors - The 'opportunities' and 'threats' caused by the external environment and the competition.

The internal aspects may be considered as strengths or weaknesses depending upon their effect on the company's positions. This means, they may symbolize a strength for one organization but a weakness, in relative terms, for a different. The external factors may comprise macroeconomic issues such as technological change, legislation, and socio-cultural changes, in addition to changes in the marketplace or competitive position. The results are often presented in the form of a matrix.It should be kept in mind that a SWOT analysis is just one technique of categorization and has its own weaknesses. It is worth pointing out that SWOT analysis can be very subjective: Two people rarely come-up with the same version of a SWOT analysis even when given the same information about the same business and its environment. Accordingly, SWOT analysis is best used as a guide and not a prescription. Adding and weighting criteria to each factor increases the validity of the analysis. The importance of individual SWOTs will be exposed by the value of the strategies it creates. A SWOT point that generates valuable strategies is central. A SWOT item that leads to no strategy is not relevan.

Internal Strenght and Weaknesses Internal strengths and weaknesses are an organizations controllable activities that are performed especially well or poorly. The internal strengths and weaknesses can arise in the: Management, Marketing, Finance or accounting, Production or operations, Research and development, and Management information systems activities of a business.

To identify and evaluate organizational strengths and weaknesses in the functional areas of a business is an essential strategic management activity. Organizations strive to pursue strategic that capitalize on internal strength and eliminate internal weaknesses. The strengths and weaknesses are determined relative to competitors. Relative deficiency or superiority is important information. Other than that, strengths and weaknesses can determine by elements of being rather than performance. For example based on financial, Adidas is reducing operating expenses as a percentage of sales despite significant increasing in advertisement. Strengths and weaknesses may be determined relative to a firms own objective. For example, Adidas want to produce the most durable and safety footwear for athletes in different sport. So, the strength that it has is product being sold around the world is 200 countries. Internal factors can be determined in a number of ways, including computing ratios, measuring performance, and comparing to past periods and industry averages. Various types of surveys also can be developed and administered to examine internal factors such as employee morale, production efficiency, advertising effectiveness, and customer loyalty. For example, NIKE have their customer loyalty for a long time but the weakness is the new generation will be not be exclusively loyal to NIKE.

External Opportunities and Threat External opportunities and external threats refer to economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive trend and events that could significantly benefit or harm an organization in the future. Opportunities and threats are largely beyond the control of a single organization. In a global economic recession, a few opportunities and threats that face many firms are listed here: Availability of capital can no longer be taken by granted Consumers expect green operation and products Marketing has moving rapidly to the Internet Consumers must see value in all the consume Global markets offer the highest growth in revenue

Other opportunities and threats may include the passage of a law, the introduction of the new product by competitor, a national catastrophe, or the declining value of the dollar. A competitors strength could be a threat. A basic tenet of strategic management is that firm need to formulate strategies to take advantages of external opportunities and to avoid or reduce the impact of external threats. For this reason, identifying, monitoring and evaluating external opportunities and threats are essential for success. This process of conducting research ad gathering and assimilating external information is sometimes call environmental scanning or industry analysis.

Competitive Advantage In strategic management, they are nine key terms that should consider in order to discuss on strategic management. Strategic management is all about gaining and mantaining competitive advantage. Competitive advantage refer to an advantage that a firm has over its competitors, allowing it to generate greater sales or margins and /or retain more customers than its competition. There can be many types of competitive advantages including the firms cost structure, product offerings, distribution network and customer support. Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. There are two main types of competitive advantages , which is comparative advantage and differential advantage. Comparative advantage, or cost advantage, is a firms ability to produce a good or service at a lower cost than its competitors, which gives the firm ability sell its good or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firms products or services differ from its competitors and are seen a better than a competitors products by customers.

ADIDAS CASE STUDY- THE NATURE OF STRATEGIC MANAGEMENT As our first task, we need to make some comparison between Adidas and three of other its competitors that identified as Nike, Puma and Callaway Golf. First of all, the comparison is between the internal and external factors. ADIDAS SWOT ANALYSIS Internal Factor THEORY STRENGTH WEAKNESSES - Changing ownership gradually eroded the companys fortunes

1.Management - Proposing a dividend to shareholder more than twice the prior year level -Have team of employees with the expertise of R&D 2.Marketing - Customer segmentation strategy - Largest market share in Europe -Product being sold around the world is 200 countries. 3.Finance -Reducing operating expenses as a percentage of sales dispite significant increasing in advertisemnet - Net income increase 131 % to 567 million and earning per share were 2.71

-Lack of global advertisement campaign -Increased cost of advertisement -Too many product

-Financial crisis and economic difficulties of 2009 - Decreasing of percentage total revenue from 2008 to 2009,(4.85% to 3.8%)

External factor THEORY 1.Technology OPPORTUNITIES -Using new technologies are engineering using state of the art CAD and Finite Element Analysis (FEA) systems -Focus on the development of innovative technologies for performance sport. - Improve their productivity -Going into global market brands THREAT - Invest considerable resources into developing and commercialising new technologies . -As well as new design ideas.

2.Competitor

3.Demographic -trendy, modern and cool -Product segmentationperformance,original and lifestyle for each different gender.

- Adidas larger competitor, Nike has a greater market share -Amount of competitor increasing day by day - Less focus on aging factor. -The newly born several brands like New Balance,Reebok,CAT,GAP.-has increase their advertising budget.

Adidas sw In management of Adidas Company, they have proposing a dividend to shareholder of 0.80, more than twice the prior year level. That can make shareholders more confident with Adidas management in company. Other than that, management of Adidas Company had been stronger because they have team of employees with the expertise of R&D. The team is for coordination of compliance with and control of the Workplace Standard.

The strength of Adidas marketing is have involved customer segmentation strategy that facilities the systematic allocation of differentiated product packaged to group of comparable customers. The segmentation strategy is a initiative, which designed and implemented in Europe. Furthermore, Adidas Company has largest market share in Europe and has their product has being sold around the world in 200 countries.

Beside, the Adidas Company also has weaknesses in marketing. The company has lack of global advertisement campaign and their cost of advertisement was increases. That is because, the Adidas Company have new brand such as Reebok, CAT, and Gap has increase their advertising budget in recent years. Adidas have much kind of products to producer make their cost increases.

The strength of financial Adidas Company is they have reducing operating expenses as a percentage of sales despite significant increasing in advertisement to support brand strength. As marketing working budget expenses are not distribution channel specific, they are not allocated to the segment. Based on annual report Adidas 2009, net income was increase from 131 % to 567 million and earnings per share were 2.71 The weakness of financial Adidas Company is when the company has faced financial crisis and economic difficulties of 2009. At the time, the percentage of total revenue was decrease from 4.85% to 3.8 %.

Adidas-ot

First, in term of opportunities of technology, Adidas are using new technologies using engineering state-of-the art CAD and Finite Element Analysis (FEA) systems. For example, the sourcing team together with the material teams within product development work closely with our suppliers to identify innovative materials as well as integrate cost and production process aspects into the development phase. Adidas also focus on the development of innovative technologies for performance sport. For example, Adidas was introduced the Adidas JABULANI, which is the official match ball for the 2010 FIFA World Cup in South Africa. Second, in term of opportunities competitor, Adidas need to improve their productivity. The reason is the company is establish among international level.This have been proven when their brands going into global market brands. Third in term of opportunity in demographic areas, Adidas has more trendy, modern and cool type of product. The company also using product segmentation strategies in order to ensure their product will successful segmented. The company make differentiation between performance, original, lifestyle for each different gender, male and female. The adidas brand breaks their products down into two primary divisions called as Sport Performance and Sport Style. In term of threat that Adidas faced, their larger competitor, Nike has a greater market share in Europe. This will make Adidas need to rearrange their strategies again in order to win the situation. Not only that, there were so many amount of competitors exist and increasing day by day. Third in term of opportunity in demographic areas, Adidas has more trendy, modern and cool type of product. The company also using product segmentation strategies in order to ensure their product will successful segmented. The company make differentiation between performance, original, lifestyle for each different gender, male and female. The adidas brand breaks their products down into two primary divisions called as Sport Performance and Sport Style. Adidas have less focus on aging factor. This company just focusing on gender segmentation only.This factor can give big matter of threat from the other company which also covered from aging factor. In addition, the newly born several brands like New Balance, Reebok,CAT,GAP. All of this new brands has increase their cost in term of advertising budget. This also give a big threat to Adidas company.

Adidas versus Nike Theory Management Strengths -No factories. It uses contract factories to get the work done which makes it quite a lean organization. -Five structures within the apparel division to focus -Global brand in the world -45 different countries -We generated $19.2 billion in revenue up 3 percent year over year. -The Nike brand generated $16.7 billion in revenue, another record performance, as footwear sales topped $10 billion and apparel sales topped $5 billion. Sales for the Jordan Brand exceeded $1 billion. Weaknesses -Unwilling to disclose any information concerning its partnering companies -Lack of strategic market -Sensitive price in retail sector.

Marketing

Finance

-Earnings per share declined 19 percent for the year. Excluding noncomparable items earnings per share would have been up 10 percent.

There are some comparisons between ADIDAS and NIKE based on internal factors such as management, marketing and finance. Based on the management, ADIDAS have team of employees with the expertise of RND. The team is for coordination of compliance with and control of the Workplace Standard. ADIDAS also proposes a dividend to shareholder more than twice the prior year level. That can make shareholders more confident with Adidas management in company while NIKE has no factories. It uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 700 shops globally in about 45 different countries. ADIDAS weakness is detected when it changed ownership gradually eroded the companys fortunes. When ownership changes, the planning also have change and can give effect to the company while NIKE unwilling to disclose any information concerning its partnering companies. It will cause the lack of trust between NIKE and its companys partnership. Based on the marketing factor, the ADIDAS strength is it the largest market shares in Europe. It has their product has being sold around the world in 200 countries. Product being sold around the world is 200 countries. Customer segmentation strategy that facilities the systematic allocation of differentiated product packaged to group of comparable customers. The segmentation strategy is a initiative, which designed and implemented in Europe. Compare to the NIKE, it has five structures within the apparel division to focus which are women, men, kids, sports graphics and caps, and strategic response independently. NIKE is the global brand in the world, recognized for being the number one sportswear brand in the World. It has contracts with above 700 shops globally in about 45 different countries. ADIDASs weakness is it has a lack of global advertisement campaign. It cost of advertisement was increases and have too many product. Compare to the NIKE, it have a lack of strategic market and sensitive price in retail sector. It is because retailers usually tend to offer a very similar experience to the consumers with another cheaper product. Based on the finance factor, ADIDAS operating expenses on ADIDAS annual report in 2009, it was reduced as a percentage of sales despite significant increasing in

advertisement. This is important to support brand strength. As marketing working budget expenses are not distribution channel specific, they are not allocated to the segment. Net income increase 131 % to 567 million and earnings per share were 2.71. Compare to the NIKE, we generated $19.2 billion in revenue up 3 percent year over year. The Nike brand generated $16.7 billion in revenue. Another record performance, as footwear sales topped $10 billion and apparel sales topped $5 billion. Sales for the Jordan Brand exceeded $1 billion. It also based on the NIKE annual report in 2009. Percentage of ADIDASs total revenue decreasing from 2008 to 2009 (4.85% to 3.8%). It has a financial crisis and economic difficulties in year 2009. NIKE weaknesss shown when its earnings per share declined 19 percent for the year. Excluding non-comparable items earnings per share would have been up 10 percent.

Adidas versus Callaway Golf

THEORY

STRENGTH

WEAKNESSES -Pressure to design, develop source and supply new product that perform better than their predecessory.

1.Management -Mantains employee benefit plans and programs. -Top engineers in the field -Successfully managing of new product. -Have a separate team of club fitting specialist custom club Sales -the able to sustain leadership internationally ( page 9) 2.Marketing - Strong core branding (Odyssey & Callaway) -Value added by brand name -Product being sold around the world is 100 countries -Higher revenues at the first year of introduction of product life cyles.

3.Finance

-Short windows of opportunity for launch and selling new product. -Require great precision in forecasting demand. -presence of counterfeiters (page9) -Two or less years of sales. -Decreasing the revenue.

There are three internal factor which are management, marketing and financial to compare between Adidas and Callaway Golf company. In management of Adidas Company, they have proposing a dividend to shareholder of 0.80, more than twice the prior year level. That can make shareholders more confident with Adidas management in company. Other than that, management of Adidas Company had been stronger because they have team of employees with the expertise of R&D. The team is for coordination of compliance with and control of the Workplace Standard. Than there a few strength of management Callaway Golf Company are the company was maintain employee benefit plans and programs for participation of executive officers in Callaway Golf Company. That strategies make them feel appreciate and satisfy. Another, the Callaway Golf has top engineers in the field to create idea to improve high quality golf club products. They also are expertise in field creation product especially using in technology. Therefore, they were successful in managed and launch new products to market. Today, the Company, together with its subsidiaries, designs, manufactures and sells high quality golf clubs are drivers, fairway woods, hybrids, irons, wedges and putters),golf balls, and also sells golf accessories such as GPS range finders, golf bags, gloves, footwear, apparel, headwear, eyewear, towels and umbrellas) under the Callaway, Odyssey, Top-Flite, Ben Hogan, and UPro brand names. The company also has a separate team of club fitting specialists who focus on the Companys custom club sales and able to sustain leadership internationally.

Nevertheless, the Adidas Company also has weaknesses in management process. The company has changing ownership gradually eroded the companys fortunes. When ownership changes, the planning also have change and can give effect to the company. Even do compare the Adidas Company, the Callaway also have weaknesses in management. The company has pressure to design, develop source and supply new product that perform better than their predecessor because their product still new and the Adidas Brand was sustain long in market. Therefore, the Callaway Company need create idea to produce the products.

Next internal factor is about marketing of Adidas and Callaway Golf Company. The strength of Adidas marketing is have involved customer segmentation strategy that facilities the systematic allocation of differentiated product packaged to group of comparable customers. The segmentation strategy is a initiative, which designed and implemented in Europe. Furthermore, Adidas Company has largest market share in Europe and has their product has being sold around the world in 200 countries. Compare the strengths of Adidas marketing, the strength of Callaway Golf Company is has strong core brand (Odyssey & Callaway) The participation of core golfers and rounds of golf played yearly drive the golf equipment sales. Core golfers are adult golfers who play eight or more rounds of golf per year and account for 87% of total domestic participation and 87% of total golf expenditures. So, value Callaway Company added by brand name. Adidas was successful sold their product to 200 countries in the world, while Callaway Company has sold their products to 100 countries.

Beside, the Adidas Company also has weaknesses in marketing. The company has lack of global advertisement campaign and their cost of advertisement was increases. That is because, the Adidas Company have new brand such as Reebok, CAT, and Gap has increase their advertising budget in recent years. Adidas have much kind of products to producer make their cost increases. The weakness of Callaway Golf marketing compare the Adidas Company is the Callaway Golf company has relatively short window of opportunity for launching and selling new products requires great precision in forecasting demand and assuring that supplies are ready and delivered during the critical selling periods. Therefore, the company requires great precision in forecasting demand. Another, the market is the presence of counterfeiters, who compete for customers that care more about the price as opposed to the quality and performance of the equipment. The third internal factor is about financial between Adidas and Callaway Golf Company . There are several contrasts between Adidas financial and Callaway financial. The strength of financial Adidas Company is they have reducing operating expenses as a percentage of sales despite significant increasing in advertisement to support brand strength. As marketing working budget expenses are not distribution channel specific, they are not allocated to the segment. Based on annual report Adidas 2009, net income was increase from 131 % to 567 million and earnings per share were 2.71. while Based on annual report 2009 of Callaway Company, they have higher revenues at the first year of introduction of product life cycles. Factors driving these short product life cycles include the rapid introduction of competitive products and quickly changing consumer preferences. The weakness of financial Adidas Company is when the company has faced financial crisis and economic difficulties of 2009. At the time, the percentage of total revenue was decrease from 4.85% to 3.8 %. Same with Adidas company, Callaway Company also have weakness in financial. In first year, the company gain higher revenues but after that, total revenue was decrease because amount of product sold decreases.

Adidas versus Puma Theory Management Strengths Weaknesses - Opened new company headquarters - difficult and a painful process in Herzogenaurach, Germany. - worked on time-to-market. - The most innovative marketing Campaign (Everest of Sailing) - sponsored ten African national teams (Africa Cup of Nations in Angola) - distribution through 80 countries - measures pro-actively in the previous year - The price of the PUMA share stood increased by 65.2% year-on-year - Lack of infrastructure and low water resources.

Marketing

Finance

- global brand sales decreased by 6.4% to over 2.6 billion - Currency-adjusted consolidated sales dropped by 3.7% to approx. 2.5 billion.

There are some comparisons between ADIDAS and PUMA based on internal factors such as management, marketing and finance. Based on the management, ADIDAS have team of employees with the expertise of RND. The team is for coordination of compliance with and control of the Workplace Standard. ADIDAS also propose a dividend to shareholder more than twice the prior year level. That can make shareholders more confident with Adidas management in company while PUMA had opened new company headquarters in Herzogenaurach, Germany. The complex includes a modern administration centre, a Brand Centre and the worlds largest PUMA Store. The new headquarters also embodies our longstanding commitment to climate protection, as it incorporated numerous innovative energy and electricity saving concepts in the new building that limit its effect on the environment. It also worked on time-to-market to make operational processes and its organization more efficient. ADIDAS weakness is detected when it changed ownership gradually eroded the companys fortunes. When ownership changes, the planning also have change and can give effect to the company while PUMA made executed a tight cost savings program to adjust our cost structure to market reality although it was difficult and a painful process. Based on the marketing factor, ADIDAS strength is it the largest market shares in Europe. It has their product has being sold around the world in 200 countries. Product being sold around the world is 200 countries. Customer segmentation strategy that facilities the systematic allocation of differentiated product packaged to group of comparable customers. The segmentation strategy is a initiative, which designed and implemented in Europe. Compare to the PUMA, it is the most innovative marketing Campaign known as the Everest of Sailing. It was launched and provided an extremely successful entry into the sailing category. PUMA also sponsored ten African national teams (Africa Cup of Nations in Angola). It was the first time PUMA were the Official Supplier of the tournament. Other than that, PUMA is distribution through 80 countries. From the weakness, Adidas has large of amount of competitor increasing day by day. Adidas weakness has a lack of global advertisement campaign. It cost of advertisement was increases and have too many product while PUMA has a lack of infrastructure and low water resources.

Based on the finance factor, ADIDAS operating expenses on ADIDAS annual report in 2009, it was reduced as a percentage of sales despite significant increasing in advertisement. This is important to support brand strength. As marketing working budget expenses are not distribution channel specific, they are not allocated to the segment. Net income increase 131 % to 567 million and earnings per share were 2.71. Compare to PUMA, it measures pro-actively in the previous year to ensure the companys high profitability also in the future. The price of the PUMA share stood at 231.84 at the end of the year and increased by 65.2% year-on-year, which resulted in a market capitalization of approx. 3.5 billion. Percentage of ADIDASs total revenue decreasing from 2008 to 2009 (4.85% to 3.8%). It has a financial crisis and economic difficulties in year 2009. Compare to the PUMA, its global brand sales decreased by 6.4% to over 2.6 billion. It based on the PUMA annual report in 2009. Its currency-adjusted consolidated sales dropped by 3.7% to approx. 2.5 billion.

External Factor Adidas versus Nike THEORY 1.Technology OPPORTUNITIES THREAT

- Created new technologies to - Design new products for nearly every drive product innovation ( competitive event. Flywire and LunarFoam) 2.Competitor -Improve their design -Nike has a greater market share but -Sponsorship world event ( Adidas larger competitor. Atlanta Olympics) 3.Demographic - Nike's once loyal market is - The new generation will not be currently aging exclusively loyal to Nike

There are some comparisons between Adidas and Nike based on external factors such as technology, competitor and demographic. Based on technology, Adidas take an opportunity by using new technologies. The new technologies that it used are engineering using state of the art CAD and Finite Element Analysis (FEA) systems. Adidas focus on the development of innovative technologies for performance sport. For example, Adidas was introduced the Adidas JABULANI, which is the official match ball for the 2010 FIFA World Cup in South Africa. Compare to the Nike, it created new technologies to drive product innovation which are Flywire and LunarFoam. For three years Nike worked with athletes all over the world to design new products for nearly every competitive event. Adidas has some threats which are invest considerable resources into developing and commercialising new technologies. Other than that, the new designs make some customer hard to adapt the products while Nike designs new products for nearly every competitive event. Based on competitor, the opportunity that Adidas take is going into global market brands. Adidas can market its brand of products to the global. It also improves their productivity to make more durability product such as JABULANI. It will establish the company among international level. This has been proven when their brands going into global market brands. Other than that, Nike always improves their design to fulfil and give the satisfaction to their customer. It is the company who is sponsored the world event such as Atlanta Olympics. Nike sponsored the top athletes and due to this step, it gained valuable

coverage. From the threats, Adidas has large of amount of competitor increasing day by day. Adidas has a larger competitor. It makes Adidas need to rearrange their strategies again in order to win the situation while Nike has a greater market share. NIKEs market has higher demands in the world. Based on the opportunities of demographic, the product segmentation of ADIDAS performance is variety, original and lifestyle for each different gender, trendy, modern and cool. It used product segmentation strategies in order to ensure their product will successful segmented while Nike's once loyal market is currently aging which are women, men, kids, sports graphics and caps, and strategic response independently. As the threats, ADIDAS has a less focus on aging factor. It is only focus on gender which is for female and male. The newly born several brands like New Balance, Reebok, CAT and GAP has increase ADIDAS advertising budget. Its brands have increased their cost in term of advertising budget. This also gives a big threat to Adidas Company compare to the NIKE, the new generation will not be exclusively loyal to them. It is because the customers can choose other brands with the same quality but have the lower prices.

Adidas versus Callaway Golf

THEORY 1.Technology

OPPORTUNITIES -Using Computer Aided Design (CAD) software, Computer Aided Manufacturing (CAM), and Computer Numerical Control milling equipment- to create and modified product design. -Using Ethernet-based I/O new golf ball -A large fraction of the core golfer group -strong customer base

THREAT -All competitor are using RND to compete each other by using new tehnology

2.Competitor

- The opposite between prices and quality of the equipment ( 9)

3.Demographic -target for those who like to play golf -Focus on segmentation of golf ball, glove and equipment to play

-Have no segmentation of gender like Adidas -Not have variety type of segmentation

In term of external opportunities and threat, there are three factors that used in order to do the comparison between Adidas and Callaway Golf. The factor include technology, competitor and demographic. First, in term of opportunities of technology, Adidas are using new technologies using engineering state-of-the art CAD and Finite Element Analysis (FEA) systems. For example, the sourcing team together with the material teams within product development work closely with our suppliers to identify innovative materials as well as integrate cost and production

process aspects into the development phase. Adidas also focus on the development of innovative technologies for performance sport. For example, Adidas was introduced the Adidas JABULANI, which is the official match ball for the 2010 FIFA World Cup in South Africa.While Callaway Golf are using Computer Aided Design (CAD) software Aided Manufacturing (CAM), and Computer Numerical Control milling equipment in order to create and modified product design. Not only that, Callaway also using Ethernet-based I/O in order to create new golf ball.This technology in order to help automate its new 225,000 square-foot manufacturing facility, which was built to produce Callaways revolutionary new golf ball, the Rule 35. Second, in term of opportunities competitor, Adidas need to improve their productivity. The reason is the company is establish among international level.This have been proven when their brands going into global market brands.While, Callaway Golf has a large fraction of the core golfer group. This is because as the generation get older, they will form a large fraction of the core golfer group and provide a strong customer base for Callaway and its competitors. The company also have a strong customer base. This is also the opportunities to them because they do not need to worry about the new competitors. The customer always know what are the best product to them. Third in term of opportunity in demographic areas, Adidas has more trendy, modern and cool type of product. The company also using product segmentation strategies in order to ensure their product will successful segmented. The company make differentiation between performance, original, lifestyle for each different gender, male and female. The adidas brand breaks their products down into two primary divisions called as Sport Performance and Sport Style.On the other hand, Callaway Golf have using product segmentation in term of different way which is by targetting for those who like to play gol. That is why, the company produce many type of product of golf base, such as golf bags, gloves, shoes and other apparel.Then, the comparison between both of company is in term of threat of technology. Adidas need to invest considerable resources into developing and commercialising new technologies.The reason is new technologies will come up with high risk in term of cost to using or bring new technologies. For example , when this company want to produce new design of company. While Callaway Golf has faced threat in term of when all the other competitors are using to compete each other by using new technology. This company need to compete and win the situation. Not only that, but the company also faced threat from Ebay in order to give threat to Callawaypreowned.com.Then, the comparison among the Adidas and Callaway Golf in term of threat that have been given by their competitors. First, Adidas has larger competitor, Nike has a greater market share in Europe. This will make Adidas need to rearrange their strategies again in order to win the situation. Not only that, there were so many amount of competitors exist and increasing day by day.While, Callaway Golf also faced with threat in term of competitor. One threat in this market is the presence of counterfeiters, who compete for customers that care more about the price as opposed to the quality and performance of the equipment.The reason is the opposite between prices and quality of the equipment. In contrast, Adidas have less focus on aging factor. This company just focusing on gender segmentation only.This factor can give big matter of threat from the other company which also covered from aging factor. In addition, the newly born several brands like New Balance, Reebok,CAT,GAP. All of this new brands has increase their cost in term of advertising budget. This also give a big threat to Adidas company.While, Callaway golf have no segmentation of gender like Adidas. This is because the company just focus on people for those who want to play golf without countying their aging,gender, or what place they comes from.The demography factor just focus on people who want becoming richers mans game

againt. Not only that, compare with Adidas, Callaway Golf have threat on lifestyle changes towards spending weekends with family.

Adidas versus Puma THEORY

1.Technology

OPPORTUNITIES
- Restructuring and re-engineering program designed - innovative technologies with lifestyle - capitalized on the few competitions ( Volvo Ocean Race and the Athletics World Championships) - The large retailer industry -sport lifestyle

THREAT
-do not use innovative ways yet

2.Competitor

3.Demographic

-Competition mainly comes in the form of premium positioned stores in the high-class category. -new entrants into the market - limited aging

There are some comparisons between Adidas and Nike based on external factors such as technology, competitor and demographic. Based on technology, Adidas take an opportunity by using new technologies. The new technologies that it used are engineering using state of the art CAD and Finite Element Analysis (FEA) systems. Adidas focus on the development of innovative technologies for performance sport. For example, Adidas was introduced the Adidas JABULANI, which is the official match ball for the 2010 FIFA World Cup in South Africa. Compare to the PUMA, restructuring and re-engineering program designed to give the foundation for its next phase of growth. PUMA made strategy of combining top sports performance and innovative technologies with lifestyle in an inimitably unique manner. . Adidas has some threats which are invest considerable resources into developing and commercialising new technologies. Other than that, the new designs make some customer hard to adapt the products while PUMA do not use innovative ways yet. If it will be use, it can reduce the carbon emissions, curtail wasteful transportation, recycle and reuse available materials, use water sparingly, become paperless to save nature and stand ready to adapt to new challenges that will present themselves as it work towards the goal of becoming an exemplary leader in sustainability. Based on competitor, the opportunity that Adidas take is going into global market brands. Adidas can market its brand of products to the global. It also improves their productivity to make more durability product such as JABULANI. It will establish the company among international level. This has been proven when their brands going into global market brands. Compare to PUMA, it is the large retailer industry. It has very high levels of

competition. It is extremely competitive and growing at a fast pace in Australia, it is still not as large as the department store industry elsewhere in the world, such as the USA. Other than that, it also capitalized on the few competitions which are by Volvo Ocean Race and the Athletics World Championships. Adidas has a larger competitor. It makes Adidas need to rearrange their strategies again in order to win the situation while PUMA has a greater market share. PUMAs new entrant into the market lies in the form of competing department stores from overseas. The main competitors of Puma stores are middle- upper class department stores that stock a wide variety of products. Competition mainly comes in the form of premium positioned stores in the high-class category. Based on the opportunities of demographic, the product segmentation of ADIDAS performance is variety, original and lifestyle for each different gender, trendy, modern and cool It used product segmentation strategies in order to ensure their product will successful segmented while PUMA is already known as the sport lifestyle branded. It is most popular among the teenagers and adult. As the threats, ADIDAS has a less focus on aging factor. It is only focus on gender which is for female and male. The newly born several brands like New Balance, Reebok, CAT and GAP has increase ADIDAS advertising budget. This also gives a big threat to Adidas Company Compare to the PUMA, there is a limited aging who is famous among customers. It is not too famous among older people.