PEST Factor: Political
The German government and industry has decided to become more assertive and politically more vocal, typically by using its political influence to secure more raw materials. This is a risk as it isolates certain consumer groups. In addition to that, Germany is struggling for raw materials with China, which could create conflict or trade friction with that country. Since China is the second biggest market for Adidas (Adidas having 23% of sales from Greater China in 2011), it will be a threat to Adidas as German government run the risk of China boycotting German goods, including products from Adidas. Finally, this could potentially impact people’s perception of Germany, and thus indirectly impact their perception of Adidas as a big German company.
Sources:
http://wsws.org/en/articles/2013/02/20/germ-f20.html
http://www.adidas-group.com/en/investorrelations/assets/pdf/factsheet/adidas_Group_Booklet_2011_En.pdf
The German government and industry has decided to become more assertive and politically more vocal, typically by using its political influence to secure more raw materials. This is a risk as it isolates certain consumer groups. In addition to that, Germany is struggling for raw materials with China, which could create conflict or trade friction with that country. Since China is the second biggest market for Adidas (Adidas having 23% of sales from Greater China in 2011), it will be a threat to Adidas as German government run the risk of China boycotting German goods, including products from Adidas. Finally, this could potentially impact people’s perception of Germany, and thus indirectly impact their perception of Adidas as a big German company.
Sources:
http://wsws.org/en/articles/2013/02/20/germ-f20.html
http://www.adidas-group.com/en/investorrelations/assets/pdf/factsheet/adidas_Group_Booklet_2011_En.pdf