Adidas

1 EFE Analysis
EFE Matrix is an analytical technique related to the SWOT analysis. EFE is an acronym of the
External Factor Evaluation. EFE Matrix evaluates the external position of the organization or its
strategic intent. EFE matrix method is a strategic-management tool often used for assessment of
current business conditions. It is a good tool to visualize and prioritize the opportunities and
threats that a business is facing. The EFE matrix is concerned primarily with external factors.
The external factors consist of opportunities and threats. Opportunities are those elements that
the project could exploit to its advantage. Threats are those elements in the environment that
could cause trouble for the business or project.
It will help the strategists to formulate new strategies and policies on the basis of existing
position of the company.
1.1 Steps in the construction of EFE matrix
Firstly all the opportunities and threats are listed down which include 10-15 external
factors.
Secondly, weights are allotted to each factor that ranges from 0.0 (not important) to 1.00
(most important). The total sum of weights should be equal to 1.00.

Thirdly, rate the factors on the scale of 1 to 4 based upon the companys response to the
factor. ( here 1 shows poor response and 4 superior response)

In the fourth column, calculate the weighted score by multiplying the each factors
weight by its rating.

Lastly find the total weighted score by adding the weighted score of each variable
1.2 EFE Matrix of Adidas

Key External Factors
Opportunities
Mobile media used for
Weigh
t
Weight
Rating
ed
Score
0.08
3.00
0.24
Trends of people targeted
0.11
4.00
0.44
Product Innovation
0.12
3.00
0.36
Product Development
0.14
2.00
0.28
High and appropriate product
0.03
4.00
0.12
Digital Media in Use
0.03
3.00
0.09
0.05
3.00
0.15
Counterfeit Products
0.15
2.00
0.30
Weak Distribution Channels
0.05
3.00
0.15
0.10
2.00
0.20
0.04
4.00
0.16
0.03
3.00
0.09
Financial slowdown
0.07
3.00
0.21
Total Weighted Score
1.00
advertisement
Growing Demand in Sports

Equipment
Threats
Lesser cost products from

competitive brands
New Competitions
Negative Branding and illegal
activities
2.79
Based on the above calculations it has been concluded that the companys Total Weighted Score
is 2.79 which shows that somehow company has been successful in utilizing its opportunities and
minimizing the threats around it.
2
2 Competitive Profile Matrix

Competitive Profile Matrix (CPM) is an essential strategic management tool to compare the firm
with the major players of the industry. It shows the clear picture to the firm about their strong
points and weak points relative to their competitors. The best thing about CPM is that it includes
the firm and also facilitates to add other competitors to make the comparative analysis easier.
Rating in CPM represents the response of firm towards the critical success factors. Critical
success factors are extracted after deep analysis of external and internal environment of the firm.
2.1 Some important point related to CPM:
Rating is applied to each factor.

The response is poor represented by 1.0
The response is average is represented by 2.0
The response is above average represented by 3.0
The response is superior represented by 4.0 Weight- attribute in CPM indicates the
relative importance of factor to being successful in the firms industry.

Weighted score value- is the result achieved after multiplying each factor rating with the
weight.
Total weighted score- is the sum of all weighted score; final value of total weighted score
should be between ranges 1.0 (low) to 4.0(high).
2.2 CPM of Adidas with its competitors
Adidas
Critical Success Factors
Advertising
Weig
ht
0.20
Ratin
g
3.00
3
Scor
e
0.60
Nike
Ratin
g
4.00
Scor
e
0.80
Puma
Ratin
g
2.00
Scor
e
0.40
Product Quality
Price Competetiveness
Market Share
Financial Position
Customer Loyalty
Global Expansion
Total Overall Competitive
Weights
0.15
0.15
0.10
0.10
0.20
0.10
4.00
2.00
2.00
3.00
4.00
3.00
1.00
0.60
0.30
0.20
0.30
0.80
0.30
3.10
4.00
3.00
4.00
4.00
3.00
3.00
0.60
0.45
0.40
0.40
0.60
0.30
4.00
2.00
2.00
2.00
2.00
1.00
3.55
Adidas Competitive Profile Matrix represents the various elements in the environment that could
cause trouble for the business or project and the elements that the project could exploit to its
advantage.
0.60
0.30
0.20
0.20
0.40
0.10
2.20

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1 EFE Analysis

1.1 Steps in the construction of EFE matrix

(most important). The total sum of weights should be equal to 1.00.

factor. ( here 1 shows poor response and 4 superior response)

weight by its rating.

1.2 EFE Matrix of Adidas

Trends of people targeted

High and appropriate product

Digital Media in Use

Weak Distribution Channels

Total Weighted Score

Growing Demand in Sports

Lesser cost products from

2 Competitive Profile Matrix

2.1 Some important point related to CPM:

Rating is applied to each factor.

relative importance of factor to being successful in the firms industry.

2.2 CPM of Adidas with its competitors

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