1. PEST Analysis of Adidas
1.1 Political Factors
Adidas generates policies and monitor hazardous substance to protect human health and environment . and also it protects the rights of its employees by following labour laws on country specific way. Adidas a multinational company need to consider the global political state as well as domestic political issues. It is important to monitor the government’s laws which affect the business of adidas. Since the political arena has a huge influence upon the regulation of public and private sector businesses, and the spending power of consumers and other businesses it has come necessary for adidas react dynamically and efficiency for these issues. The government enters in to any trade agreements adidas needs to keep it on track since it may affect the business. Government taxation policy plays a major role in company’s profit.
1.2 Economical Factors Adidas as a multi national company maintain it’s strong economical growth year by year. In 2008, the adidas Group again delivered a strong financial performance. The product sales and the profitability gowned up in line with management’s initial expectations. Currency-neutral sales increased by 9%. And the double digits sales increase in adidas segment had the biggest impact on this development. Adidas managed to reduce it’s production cost with improving the product quality by locating the factory plants in Asia.
1.3 Social Factors There is no barriers for Adidas products like raise, age, religion, and lifestyle, it is always in fashion with special design in any product. Adidas focus in people who like sports and athletes, almost everybody beyond the boundaries.
1.4 Technology Adidas introduces modern approaches to doing new and old things, Adidas join into technology by make up the world’s first “smart shoe”, adding a microchip inside the shoe and wireless mp3 player. Adidas uses hot melt system of production which is environment friendly. And the packaging system, storage system and transportation of products are considerably advanced comparing to other companies.