Adidas’ tet campaign executive Summary

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Threat of substitutes:

The threat of substitute products before Adidas is moderate. Its competitors are neither too numerous nor too few. There are small and large competitors, as well as local and international competitors, who offer a variety of products at a variety of prices. Some cater to the needs of the high-end customer, but local competitors provide cheaper replacements. The threat of substitute products is mitigated by Adidas' product quality and marketing efforts. Adidas has focused on marketing in metropolitan markets to further mitigate the threat because a large portion of its customer base resides there. Aside from Nike and Puma, there are several other brands in the industry that compete with Adidas. However, aspects such as quality, marketing, and technological innovation.

  1. Threat of new entrants:

Adidas faces a low to moderate threat from new entrants. While a brand might begin with a minimal expenditure on a local scale, growing a brand to the magnitude of Adidas on a worldwide scale necessitates a very substantial investment, as evidenced by the size of its production and supply chain. Technology, competent human resources, marketing, advertising, and other elements necessitate significant expenditure. So, unless someone has a lot of money to spend, getting into the industry would be difficult. Furthermore, brand equity cannot be built overnight. It also takes time and effort to build as much brand equity as possible. All of these factors mitigate the threat posed by any new player attempting to enter the industry. Access is not impossible, but the hurdles to entry remain high. Furthermore, the economies of scale attained by incumbent players such as Nike or Adidas are difficult for emerging players to obtain. New players would have to be content with lower profit margins than the leading and established players. Competing against established players such as Nike, Adidas, Puma, and others would necessitate a significant competitive advantage, which a new player may find difficult to achieve.

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