BCG Matrix Analysis of Adidas

If your business deals with sports apparel and other accessories for athletes, it might be helpful to look into the BCG matrix of Adidas. This way, you can take inspiration from the company as you map out your matrix for your products.

Before you create the matrix, it pays to know how these Adidas products are placed in each segment and the criteria it uses to decide where to place them.

Background of Adidas

Adidas, also called Adidas AG, is a German company producing athletic apparel, shoes, and other sporting goods. During the 21st century, the company was the largest sportswear provider in Europe and the world's second-largest (after Nike). You'll know it's Adidas because of its unique three-stripe logo.

The brand grew steadily during the 1950s when football players switched to using Adidas shoes, which were known to be lightweight and have screw-in cleats. It then expanded to creating various lines of goods in 1963. Four years later, Adidas also started manufacturing apparel.

Adidas BCG Matrix Analysis

Like other matrices, the BCG matrix of Adidas also includes four significant sections: Stars, Question Marks, Cash Cows, and Dogs. See how the company groups its products using the matrix.

Stars

The goods under this BCG matrix of Adidas include those with both high market growth and market share. Most importantly, Stars have the most significant percentage of the company's profits. Since it holds a solid position in the market, only a little investment is necessary to maintain its status in the industry.

Adidas and Reebok are considered the Stars of the BCG matrix of Adidas. These two brands hold the largest market shares amid the intense competition in the sports and fitness industry. Their competitors, like Nike, are also fighting for the largest market share, which fears the Adidas Group.

Question Mark

The product in this quadrant has a low market share but has excellent market growth. If the business strategically focused on its product development, the product could increase sales and profit margins.

Taylor Made and Rockport are the Question Marks of the BCG matrix of Adidas. These two brands might have small market shares, but they also can expand further in the industry. Adidas needs to update its initiatives to transform possible gains into opportunities.

Cash Cows

There's a significant market share, but minimal market expansion is what Cash Cows is all about. This means the goods here make money through sales in the current market, but they do not have the potential for further market expansion. Clothing and apparel are the Cash Cows in the BCG matrix of Adidas. The company needs to position these products in the customers' minds by exploring geographic areas.

Dogs

Essentially, the products considered as Dogs only operate to break even. They have a low market growth and market share. The company's sunglasses and hats are included in this quadrant. These two are among the least popular products since there are better alternatives where consumers prefer to spend their money. Despite this low turnout, Adidas still found ways to make them relevant in the market.

Key Takeaways

The BCG matrix of Adidas is easy to understand because of the visual illustration it provides. You can also effectively illustrate your matrix through a pre-built template from Boardmix. Since it is pre-designed, you only need to fill in the details for each segment of the matrix to finish the diagram. The online diagramming tool lets you tweak some elements on the template, like changing the colors and adding images, shapes, and arrows. It's a flexible template you can share with peers through a unique link. Check out the template here.

References

BCG Matrix of Adidas. (2018, August 15). https://bcgmatrixanalysis.com/bcg-matrix-of-adidas/

Adidas. (2023, August 4). https://www.britannica.com/topic/Adidas-AG