Analysis Paper, 8 pages (1900 words)

Swot analysist sporting goods industry

Subject: Business

Info

Published: October 10, 2022
Updated: October 10, 2022
University / College: University of Notre Dame
Language: English
Downloads: 27

High brand switching among customers with many other powerful sports brands available2. Limited presence in emerging economies as compared to a few other popular brands| Opportunity| 1. Product differentiation which can label the brand as fashion brand2. Tie- up with more emerging sports team3. More branding and innovation needed as it comes underNike| Threats| 1. Fake imitations from other local brands2. Brands which offer same style at lesser cost3. Nike the parent brand is very established brand may eat the market share of Umbro| Competition| Competitors| 1. Adidas2.

Global Presence which results in strong reach 4. Sponsorship of many international teams and players, apart from being associated with international sports events 5. Strong rd team coming up with innovative products for apparel and equipment form different disciplines| Weakness| 1. Diversification may lead to brand dilution 2. Has to first create more market and awareness in countries where sports shoes shopping is not a culture| Opportunity| 1. To increase awareness about ASICS in emerging countries 2.

Integrate the e-business in the business model to increase efficiency 3. To become a market leader in this segment as there are limited well known players| Threats| 1. Substitutes available at cheaper costs 2. Increasing indirect players getting into this sports segment 3. Competitors increasing brand awareness and penetration| Competition| Competitors| 1.

3. The brand has a diverse portfolio including shoes for running and other sports, apparels for sports and jackets, sweaters, sweatshirts, track jackets, tee shirts, caps, socks and bags for both men and women4. The brand is known for its invention-K Swiss tubes, a light weight running shoes providing lightness and comfort. 5. The customer can reach the product through various channels like departmental stores, sports shops and e commerce website.

6. The brand has sports stars brand ambassadors| Weakness| 1. The company does not have its stores in developing countries like India. 2. The company does not have any long-term manufacturing agreements with manufacturing units located at various parts of the world like China , Taiwan etc| Opportunity| 1.

The company should make long term agreements with manufacturing units to reduce backlog and other issues. 2. Increase global penetration 3. Tie-ups with sports academies, schools etc| Threats| 1. Similar products available in other brands.

2. The company might face trade barriers and currency fluctuations since it imports all the products from its manufacturing units. | Competition| Competitors| 1. Puma2. Nike3. Adidas 4.

The shoes and the skate boards come in customizable designs 4. The company has a long history since 1908 and a huge loyal customer base. 5. The company has partnered with a NGO called RED, working for AIDS relief in Africa. .

Famous sports celebrities are brand ambassadors7. The lean organization system which converse follows makes in manufacture at least cost and minimum wastage. | Weakness| 1. Tough competition from existing brands means limited market share2. Converse buys and sells in different currencies and hence can be at a loss sometimes. | Opportunity| 1.

Very well known brand in across the world 2. More product development opportunities exist for Converse as most of the products are fashion sensitive3. Converse can also diversify into shirts, bags as these are high value items. | Threats| 1. The industry is very price and fashion sensitive and hence converse too faces the threat.

| Target Group| People between 18-35 Years including athletes, fashion conscious people. Positioning| One of the world’s largest sportswear manufacturing companies| SWOT Analysis| Strength| 1. The brand has very popular sports brand ambassadors which has promoted their brand very well. 2. The innovative use of mixing different components of cloth into making a different sportswear was very successful 3. Fila’s has a very successful brand image due its motivational designs 4.

They have a very good name for its brand logo as its full of colors and easily identifiable5. The brand has over 100 stores all over the world| Weakness| 1. Fila has tremendous competition from sports apparel brand globally meaning smaller market share 2. Lack of products in the women segment as compared to mens. 3. Distribution channels not as established as the global sports apparel leaders| Opportunity| 1.

Fila will be the first brand to inculcate a casual culture into a brand experience 2. The lines of expanding into casual clothing and sports equipment| Threats| 1. The new changing trends could replace the vintage 80 look followed by fila. 2. Switching cost is very low in this Industry, so regular innovation and adapting to changes in sports industry is quint-essential| Competition| Competitors| 1.

| Target Group| Urban young upper middle class and upper class Men and Women| Positioning| Puma is an international brand with creativity, energy and style in their apparel at a very affordable price. SWOT Analysis| Strength| 1. Puma is established over 90 countries and employs around 8300 employees all over the world. 2. Puma is the main producer of enthusiast droving shoes and racing suits in both Formula One and NASCAR.

3. Puma is entered into partnerships with famous companies like Ferrari and BMW. 4. Puma brand is very innovative and has a very rich Research and Development team. The Company produced the first screw boots for football and “ Mexico 68” with the innovative brush soles, which were the most comfortable running shoes.

5. Puma has an excellent brand name throughout the world. . The brand has excellent management and marketing strategies and has the advertised the products very well and eye-catching throughout the world. 7.

Puma has entered into sponsorships with various players and teams in different sects of the sporting industry. 8. Puma was the official sponsor of the FIFA football World Cup| Weakness| 1. Puma has tough competition and limited market share compared to Nike and Adidas2. The company has less financial strength compared to the other brands in the industry3.

Tie-ups with sports academies and schools| Opportunity| 1. The company can attain more sponsorship as more international events in the sporting industry are taking place. 2. The company can start entering the lifestyle section of the industry| Threats| 1. The current economic situation is very bleak, hence expansion is minimal. 2.

There is extensive completion from existing players an new players which is growing in the industry. 3. Imitations of the brand is extensively increasing| Competition| Competitors| 1. Nike sports2. Adidas3.

4. The company has a very diversified product portfolio ranging from sports shoes, equipments to clothing and accessories. 5. Strong and innovative marketing since years have created a strong brand retention in the minds of customers 6. Has a workforce of over 45, 000 employees| Weakness| 1. The products can sometimes be costly due to innovative technology or production method 2.

Stiff competition and similar big brands means customers have high brand switching| Opportunity| 1. To keep up with the competition, Adidas generates close to 60 new foot-friendly designs each year. 2. The company can venture into making more stylish designs and cuts3. Tie-up with emerging sports teams/clubs/players internationally 4.

Brand building by setting up sports academies| Threats| 1. Other brands offer more styles and varieties, thus more competition2. Threat from other competitive brand who produce sports equipment and accessories at a lesser cost 3. Pirated/fake imitations affect brand image| Competition| Competitors| 1. Nike2. Reebok3.

Listed among 50 most innovative corporate4. It differentiates by making innovative products which has global recognition5. Effective business relationship globally6. Launched many other products in collaboration with companies e. g.

launched music player, watches etc7. Leading top of the mind brand with excellent innovative advertising and branding8. Exclusive shops all over the world apart from availability through multi-brand retail stores9. Ranked in top three for climate-friendly companies 10. Associates itself with leading international sports teams, players and events| Weakness| 1.

In Vietnam the company faced allegations of labor and wage laws with employees 2. In Cambodia and Pakistan there have been allegations for child labor and poor working conditions| Opportunity| 1. Product expansion in areas like more concentration in sunglasses, sportswear etc. which gives high profit2. Can open their stores in tier 2 cities in emerging economies as well 3.

Enhance brand visibility by opening sports academies across the world for nurturing talent| Threats| 1. Footwear market is so competitive, major competition from other brands2. As it is an international brand currency fluctuations of countries affects the business3. Fake imitations and replicas often cause a problem4. Adaption of new techniques and innovation by other brands| Competition| Competitors| 1.

Reebok 2. Adidas 3. Puma4. Converse5. Fila|