PEST Factor: Technological
This article highlights the importance of technology and innovation in the sports industry. Loughborough's Sports Technology Institute has been developing their research into improving sport kits by utilizing technology to enhance an athlete's performance. Although this is good news in that the industry is developing and finding new ways to improve sports equipment/kit, this may serve as a potential (but minimal) threat for Adidas and perhaps other sports companies. In this case, Adidas will have to keep up with the new "technology" and trend and produce goods (sports equipment) that will be appealing to the consumers. This means that Adidas will probably have to invest more in their Research & Development department and this will also affect their financial position. If Adidas does succeed in attracting even more customers from their new developed products (will need good advertising to market its innovative product), then that would be an advantage for the company. However, if Adidas starts to fall behind its competitors, such as Nike or Puma, in leveraging on new technology, then that would create a negative impact on Adidas.
Source: http://edition.cnn.com/2012/08/04/tech/innovation/olympics-technology-debate-future/index.html
This article highlights the importance of technology and innovation in the sports industry. Loughborough's Sports Technology Institute has been developing their research into improving sport kits by utilizing technology to enhance an athlete's performance. Although this is good news in that the industry is developing and finding new ways to improve sports equipment/kit, this may serve as a potential (but minimal) threat for Adidas and perhaps other sports companies. In this case, Adidas will have to keep up with the new "technology" and trend and produce goods (sports equipment) that will be appealing to the consumers. This means that Adidas will probably have to invest more in their Research & Development department and this will also affect their financial position. If Adidas does succeed in attracting even more customers from their new developed products (will need good advertising to market its innovative product), then that would be an advantage for the company. However, if Adidas starts to fall behind its competitors, such as Nike or Puma, in leveraging on new technology, then that would create a negative impact on Adidas.
Source: http://edition.cnn.com/2012/08/04/tech/innovation/olympics-technology-debate-future/index.html