MAEC Project TB06 Group 3 [Adidas] by Nur Shazwany Rasid https://padlet.com/s10208173/hyk5rm3ogiba7nk4 Wany, Nerissa, Yunyi, Denise, Ryan, Marvin en-us 2020-11-11 13:24:40 UTC 2025-12-23 06:34:29 UTC hello@padlet.com Key Info. Source [1] s101940881 https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/912712385 Nike and Adidas Market Structure]]> 2020-11-11 13:39:18 UTC https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/912712385 Microeconomics Prelim Analysis s10205421 https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/912858538 2020-11-11 14:17:38 UTC https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/912858538 Key Info. Source [2] s101940881 https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925845088 Learning from Adidas' Speedfactory blunder]]> 2020-11-16 05:41:23 UTC https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925845088 Key Info. Source [4] s10204721 https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925846738 The State of the Sneaker Market]]> 2020-11-16 05:42:18 UTC https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925846738 Key Info. Source [5] s10204721 https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925847510 The Microeconomics of Adidas]]> 2020-11-16 05:42:42 UTC https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925847510 Key Info. Source [3] s101940881 https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925860205 Battle of the Sportswear Brands: How Nike & Adidas are Competing for Young Consumers in the US]]> 2020-11-16 05:50:16 UTC https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925860205 PRELIM ANALYSIS s10194184 https://padlet.com/s10208173/hyk5rm3ogiba7nk4/wish/925863207
  • Characteristics of the market structure 


    • Market structure of Adidas: Monopolistic competition 
    Support from key sources: 
    • A multinational corporation which gets involved in designing, development and the worldwide selling and marketing of footwear products ranging from equipment to accessories 

    • Through its marketing strategies, it can be seen to present a perfect competitive aspects.


    Characteristics of the Market Structure of Adidas
    Market Structure of Adidas: Monopolistic Competition
    The market structure of Adidas falls under Monopolistic Competition. This category of market structure is essentially a middle ground between a monopoly and perfect competition. The key feature of a Monopolistic market is the Product Differentiation which is when products are similar but not identical. The features of a Monopolistic market includes:
    • Many firms in the industry sell similar products but not perfect substitutes.

    • To achieve higher returns, firms aim to differentiate their product by using advertising to brand their products differently.

    • A high level of ease and freedom when entering & exiting the market.

    • Firms in this market are considered price makers but they each hold the same and relatively low degree of market power.

    • Price elasticity of demand is also relatively high and sensitive to price changes.


    Adidas is considered to be in a Monopolistic Competition as:
    • In terms of competitors, there are several of them competing with Adidas including Nike, Reebok, Under Armour, Puma and New Balance. 


    • Information is widely available as buyers are able to compare prices & products easily. Entry into the shoe industry is considerably easy also. 


    • Each of these firms are providing sportswear and offer similar products but they largely differ in terms of their branding and image with no company having total control or dominance.


    1. Relevant demand and/or supply factors of the chosen industry/product 

    Relative demand and/or supply factors of Adidas
    Relevant demand factor of Adidas: Taste and Preferences 
    Support from key sources:
    • US Teens Favour Adidas: Teenagers in particular are starting to shift towards Adidas’ [and Vans]’ more accessible everyday activewear. GlobalWebIndex data reinforces this trend: factoring in a broader sample of Generation Z, 16-24 year olds in the US are 42 percentage points more likely than the average US consumer to have purchased Adidas products in the previous year

    • Adidas overtook Nike’s Jordan as the number two brand for sports footwear in the US last year, bolstered by sales of its more lifestyle-orientated Superstar and Yeezy sneakers.

    • consumer preferences around activewear have evolved. The rise of athleisure – wearing exercise clothing like leggings and sneakers for everyday activities, not just for playing sports or going to the gym – means that brands not previously involved with the sportswear market want a slice of the pie and are creating ranges to appeal to this new segment.



    Relevant demand factor of Adidas: Number of buyers 
    Support from key sources: 
    • Increasing Appeal among Generation Z Consumers: 35% of US 16-24 year olds, for example, have made a purchase via mobile in the past month, over-indexing by 20 percentage points compared to the average US consumer. 

    • Nearly half of this audience used social networks to find out more about brands and products


    Relevant supply factor of Adidas: Technology
    Support from key sources:
    • By transitioning to advanced engineering techniques, such as 3D printing, to cut the manufacturing process down to a few steps, apparel companies could save on labor costs and reduce energy needs and waste along the chain.

    • The company uses laser and other eco-friendly technologies to improve productivity, reduce water and energy consumption and thus remove damaging emissions and waste.


    Relevant supply factor of Adidas: Factor Price
    Support from key sources:
    • The entire production cycle would be faster, cheaper and far less ecologically damaging. 

    • The funds they could save using new tech would help balance out those costs.

    • That labor costs are more closely tied to the number of steps needed to make an article of clothing — not the number of people behind those steps.

    •  Apparel companies could save on labor costs and reduce energy needs and waste along the chain through the transition to advanced engineering techniques such as 3D printing to cut the manufacturing process down to a few steps



    Price elasticity of demand: Inelastic  
    • The price elasticity of demand (PED)  for Adidas is inelastic - which means that even with rising prices, Adidas consumers will likely still purchase their goods.

    • Factors affecting adidas’s PED are availability of substitutes and consumer habits

    • Availability of substitutes: Adidas has cultivated a loyal following of customers who jump at the chance to purchase anything with the trademark Adidas logo and branding. This cult-like consumer market is highly driven by effective marketing, such as exclusive celebrity endorsements, limited edition shoe lines and rampant advertising.

    • Hence even though there are technically other substitutes for sneakers and shoes in the market, there is no substitute for the Adidas brand.

    • In fact, the PED for Adidas is so low that there is a huge resell or black market dedicated to purchasing and selling limited edition and highly desirable sneakers. The prices for these products often surge way beyond its original price, purely due to the high demand but low supply of the shoes.

    • Consumer habits: Many of Adidas customers are “sneakerheads”, who are customers who place a large emphasis on sports and shoe culture in their daily lives. Hence even when price increases, these customers who are accustomed to a certain lifestyle, will not be as deterred from continuing to purchase Adidas products.



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