Political factors: Adidas supplies, ships, and distributes its products globally. They must extend international supply chains and adhere to political procedures when selling things online. The corporation also employs political forces to intervene in the sale of counterfeit goods.
Each country has its own taxes system. Adidas is expected to follow these guidelines for each sale and product supplied internationally. The corporation frequently outsources product development to third-world countries. Probably because it lowers manufacturing costs. However, communities do not support this form of company.
Additionally, Adidas must follow these laws:
The sporting goods sector is highly concentrated. The top 50 companies generate around 70% of the industry's revenue. Adidas is one of these companies.
Adidas' products are classified as "leisure items." They are not required. Sports buyer trends and preferences drive sales.
Leisure products from many categories must compete with one another. Sports products compete with those from the gaming and music industries. The global economy is volatile. Manufacturers are adapting to this. Adidas must investigate where its products will be sold and distributed. This ensures the growth and potential of the organization.
Adidas makes products in China because they are labor intensive and have a cheap production cost. Especially when compared to countries in North America. Adidas must exercise caution when it comes to material costs. But they face continuous challenges when importing/exporting goods. And the rise of counterfeit products dampers Adidas’ sales.
Adidas' product designs are always changing. Consumers are drawn to designs that are appealing to them. Products are frequently accessible for people of any age, gender, or lifestyle. However, their primary target market consists of health-conscious clients who enjoy sports. To cater to their customers, they must stay current on health trends and preferences.
They also provide corporate volunteer opportunities. They help communities and promote individual health. Adidas also sponsors the Olympics, which allows them to capitalize on marketing opportunities and attract new audiences all over the world.
Adidas puts their products through rigorous testing in a variety of environments. This is due to the fact that they cater to athletes. They are attempting to improve performance for coaches and sports professionals. Natural material substitutes are used for long-lasting remedies to sporting concerns.
They help with internet sales via their website and social media. They are now researching the smart sportswear market. Technology, like as Fitbit, is very popular in the health community. Adidas can leverage technical improvements to enter new markets and gain a competitive advantage.
Adidas has ownership of intellectual properties and IP systems. They also have design patents, defending their right against copiers and infringement. The patents also serve as legal protection to end counterfeit businesses. As a big company, they naturally have trademark production.
Because if their connection to the sports world, Adidas endorses celebrity sponsorships as a form of marketing. And follow full compliance with national and local laws.