3 Factors Affecting The Pestle Analysis Of Adidas

Adidas is one of the leading manufacturers of sporting goods. Writing an Adidas case study help is not easy; you must ensure that all essential points are covered. Through this article, you can briefly introduce factors affecting Adidas pestle analysis after the world got entrapped with pandemic covid19.

Political Factors

  • Import/Export tariff by Trump administration: Although Adidas is a German company, it gets its products manufactured from china. It has affected the tax policy of the brand, as the Trump government has imposed a high tax rate on this brand. It has happened after the arrival of pandemics and conflict between the US and China.
  • Supply chain regulations: As a multinational brand, Adidas goods are distributed across different countries. The supply chain policies and international trade laws differ in each country. Thus, due to complexity in the supply chain process, the brand’s profitability can be adversely affected. 
  • Government policies: It is affected due to various factors like terrorism, nationalism, patriotism, low acceptance, rigid social setup, and extremism. These factors genuinely depict the business environment of any country, and accordingly, government rules differ in each country. This point is of significant impact while writing a report for the Adidas business case study. Also read: Enron Case Analysis

Economical Factors

  • Economic recession after pandemic: The arrival of covid-19 has shut down the global economy. The businesses are not functioning like before; a stable brand like Adidas faces a downfall in annual revenue and net income. 
  • Exchange rate: For international trade, when this brand deals in Asia, those deals are done in US dollars. The company has to bear the difference in the currency exchange rate in different countries, and the pandemic has badly affected exchange rates. 

Social Factors

  • Health-conscious buyers: In recent few years, people are highly engaged in physical activities. For this, they require comfortable sports shoes, and in this, Adidas has served highly in providing comfort. But now, due to pandemics, people are closed and cannot do outdoor activities. Somehow, this is affecting the company’s profit.
  • Community program: This brand is always enthusiastic about serving its customers; a community support program has been launched to health-conscious people. 

Conclusion: Adidas is a multinational brand and is accepted worldwide and is known for comfort and quality. For Adidas case study help make use of this article for adequate information. Ensure to have relevant information about this brand for an informative case study. You will have to deeply analyze the marketing case study of Adidas for brand history, growth, revenue, status, and rise and fall of demand. 

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