Adidas - Five Forces Analysis

Adidas - Five Forces Analysis

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Intensity of Existing Rivalry

Large industry size (Adidas) Large industries allow multiple firms and produces to prosper without having to steal market share...
Government limits competition (Adidas) Government policies and regulations can dictate the level of competition within the industry. When...
Fast industry growth rate (Adidas) When industries are growing revenue quickly, they are less likely to compete, because the total...

Bargaining Power of Suppliers

Threat of Substitutes

Substitute product is inferior (Adidas) An inferior product means a customer is less likely to switch from Adidas to another product or...

Bargaining Power of Customers

Threat of New Competitors

High capital requirements (Adidas) High capital requirements mean a company must spend a lot of money in order to compete in the...
Strong distribution network required (Adidas) Weak distribution networks mean goods are more expensive to move around and some goods don’t get to...
Strong brand names are important (Adidas) If strong brands are critical to compete, then new competitors will have to improve their brand...
Industry requires economies of scale (Adidas) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
Advanced technologies are required (Adidas) Advanced technologies make it difficult for new competitors to enter the market because they have to...
Customers are loyal to existing brands (Adidas) It takes time and money to build a brand. When companies need to spend resources building a brand,...
Entry barriers are high (Adidas) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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