Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

BCG Matrix Adidas

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 2

BCG Matrix :-

The growth–share matrix (aka the product portfolio matrix , Boston Box , BCG-matrix , Boston
matrix, Boston Consulting Group analysis , portfolio diagram ) is a chart that was created by Bruce D.
Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business
units, that is, their product lines. This helps the company allocate resources and is used as an analytical
tool in brand marketing, product management , strategic management , and portfolio analysis.

BCG Matrix of adidas :-


Adidas is one of the biggest names in the sports industry, and diversified itself in apparels and
footwear. It employs over 53,731 people across 160 countries, which produce over 660 million units of
products annually, and generate the sales of around €14.5 billion (2014 figures). Adidas is the famous
sportswear manufacturer across Europe, and successful in positioning itself in the minds of consumers
to such an extent that everyone can easily recognize the brand by its logo. It has segmented itself on
the basis of psychographic, behavioral and demographic factors. The Adidas Group owns four strong
brands portfolios- Adidas, Rockport, Reebok, and Taylor made. Here is the BCG matrix of the Adidas,
which helps in determining the company’s strategic position.

Cash Cows

These products have high market share but low market growth, which means they are generating the
profit through sales in the current market, but does not possess the potential of more growth and
expansion in the market. For Adidas, its clothing and apparels are the cash cow items, and it is
necessary for the Adidas to consider this point, and position itself well in customers mind by targeting
different geographic markets .
Stars

The products which have high market share and high level of market growth fall in this category.
Products are wisely categorized for this, as these items are mainly bringing the larger portion of profit
in the company, but it is necessary for the company to reinvest in this category, and try to bring more
innovations and creativity for retaining the position. For the Adidas group, Reebok and Adidas are the
stars, as both have the stronger market share; despite of the tough competition they are facing in the
fitness and sports industry, mainly its shoes. The competitors like Nike and Pume are also fighting for
the large portion of the market share, are the biggest fear of the Adidas Group .

Question Marks

The products categorize in this are with low market share but high market growth which means if
companies will pay more strategic attention to them, they might bring the large volume of sales for the
company, and generate more profit. Taylor made and Rockport are the question marks for Adidas, as
both have very low market shares but still possess the potential of growing more in the competitive
market. Adidas needs to revise its strategies for turning the potential into the benefits for the strategic
objective of the Group. In the product category, its Sports equipment are the question mark and it need
to pay attention to this domain .

Dogs

These are the items with low market share and market growth and mostly stand at the breakeven point.
Hats and sunglasses of Adidas are categorized in this because these are the less selling items of the
company and many people are not interested in spending their money in it, as they have better options
in this category. Adidas is not successful in beating the competition in this range, and still struggling
hard to survive in this category .

You might also like