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Horst Dassler, Adidas, and the Commercialization of Sport SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Horst Dassler, Adidas, and the Commercialization of Sport


The case focuses on the career of Horst Dassler, the son of the founder of the German-based sports shoe manufacturer Adidas. The origins of the firm were in the interwar years, and it rose to public prominence after it provided spikes for the famous African-American sprinter in the 1936 Berlin Olympics. From the 1950s Horst cultivated relationships with athletes and national associations to expand his sports apparel business and develop sports sponsorship, competing fiercely against competitors such as Puma and Nike. During the 1970s he played a key role in commercializing the international soccer federation FIFA, including creating a television market for soccer, and he subsequently became a key force behind arranging sponsorships and broadcasting rights for the Olympics. The case explores the drivers of success of this major consumer brand, and provdes the opportunity to discuss the positives and negatives of the globalization and commercialization of sport.

Authors :: Geoffrey G. Jones, Michael Norris, Sophi Kim

Topics :: Innovation & Entrepreneurship

Tags :: Business law, Entrepreneurship, Ethics, Globalization, Marketing, Strategy, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Horst Dassler, Adidas, and the Commercialization of Sport" written by Geoffrey G. Jones, Michael Norris, Sophi Kim includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Horst Dassler facing as an external strategic factors. Some of the topics covered in Horst Dassler, Adidas, and the Commercialization of Sport case study are - Strategic Management Strategies, Business law, Entrepreneurship, Ethics, Globalization, Marketing, Strategy and Innovation & Entrepreneurship.


Some of the macro environment factors that can be used to understand the Horst Dassler, Adidas, and the Commercialization of Sport casestudy better are - – increasing commodity prices, cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, technology disruption, there is increasing trade war between United States & China, digital marketing is dominated by two big players Facebook and Google, etc



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Introduction to SWOT Analysis of Horst Dassler, Adidas, and the Commercialization of Sport


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Horst Dassler, Adidas, and the Commercialization of Sport case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Horst Dassler, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Horst Dassler operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Horst Dassler, Adidas, and the Commercialization of Sport can be done for the following purposes –
1. Strategic planning using facts provided in Horst Dassler, Adidas, and the Commercialization of Sport case study
2. Improving business portfolio management of Horst Dassler
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Horst Dassler




Strengths Horst Dassler, Adidas, and the Commercialization of Sport | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Horst Dassler in Horst Dassler, Adidas, and the Commercialization of Sport Harvard Business Review case study are -

High brand equity

– Horst Dassler has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Horst Dassler to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Operational resilience

– The operational resilience strategy in the Horst Dassler, Adidas, and the Commercialization of Sport Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Cross disciplinary teams

– Horizontal connected teams at the Horst Dassler are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Low bargaining power of suppliers

– Suppliers of Horst Dassler in the sector have low bargaining power. Horst Dassler, Adidas, and the Commercialization of Sport has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Horst Dassler to manage not only supply disruptions but also source products at highly competitive prices.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– Horst Dassler, Adidas, and the Commercialization of Sport firm has clearly differentiated products in the market place. This has enabled Horst Dassler to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Horst Dassler to invest into research and development (R&D) and innovation.

Digital Transformation in Innovation & Entrepreneurship segment

- digital transformation varies from industry to industry. For Horst Dassler digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Horst Dassler has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Ability to recruit top talent

– Horst Dassler is one of the leading recruiters in the industry. Managers in the Horst Dassler, Adidas, and the Commercialization of Sport are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Successful track record of launching new products

– Horst Dassler has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Horst Dassler has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Effective Research and Development (R&D)

– Horst Dassler has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Horst Dassler, Adidas, and the Commercialization of Sport - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Learning organization

- Horst Dassler is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Horst Dassler is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Horst Dassler, Adidas, and the Commercialization of Sport Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Diverse revenue streams

– Horst Dassler is present in almost all the verticals within the industry. This has provided firm in Horst Dassler, Adidas, and the Commercialization of Sport case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Superior customer experience

– The customer experience strategy of Horst Dassler in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.



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Net Promoter Score



Weaknesses Horst Dassler, Adidas, and the Commercialization of Sport | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Horst Dassler, Adidas, and the Commercialization of Sport are -

Increasing silos among functional specialists

– The organizational structure of Horst Dassler is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Horst Dassler needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Horst Dassler to focus more on services rather than just following the product oriented approach.

Slow decision making process

– As mentioned earlier in the report, Horst Dassler has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Horst Dassler even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

High bargaining power of channel partners

– Because of the regulatory requirements, Geoffrey G. Jones, Michael Norris, Sophi Kim suggests that, Horst Dassler is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Horst Dassler, Adidas, and the Commercialization of Sport, it seems that the employees of Horst Dassler don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Interest costs

– Compare to the competition, Horst Dassler has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.

Lack of clear differentiation of Horst Dassler products

– To increase the profitability and margins on the products, Horst Dassler needs to provide more differentiated products than what it is currently offering in the marketplace.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Horst Dassler, Adidas, and the Commercialization of Sport, in the dynamic environment Horst Dassler has struggled to respond to the nimble upstart competition. Horst Dassler has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

High operating costs

– Compare to the competitors, firm in the HBR case study Horst Dassler, Adidas, and the Commercialization of Sport has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Horst Dassler 's lucrative customers.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Horst Dassler supply chain. Even after few cautionary changes mentioned in the HBR case study - Horst Dassler, Adidas, and the Commercialization of Sport, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Horst Dassler vulnerable to further global disruptions in South East Asia.

Products dominated business model

– Even though Horst Dassler has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Horst Dassler, Adidas, and the Commercialization of Sport should strive to include more intangible value offerings along with its core products and services.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the Horst Dassler, Adidas, and the Commercialization of Sport HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Horst Dassler has relatively successful track record of launching new products.




Opportunities Horst Dassler, Adidas, and the Commercialization of Sport | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Horst Dassler, Adidas, and the Commercialization of Sport are -

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Horst Dassler can use these opportunities to build new business models that can help the communities that Horst Dassler operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.

Manufacturing automation

– Horst Dassler can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Low interest rates

– Even though inflation is raising its head in most developed economies, Horst Dassler can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Better consumer reach

– The expansion of the 5G network will help Horst Dassler to increase its market reach. Horst Dassler will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Horst Dassler in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Horst Dassler to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Horst Dassler to hire the very best people irrespective of their geographical location.

Buying journey improvements

– Horst Dassler can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Horst Dassler, Adidas, and the Commercialization of Sport suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.

Loyalty marketing

– Horst Dassler has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Developing new processes and practices

– Horst Dassler can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Horst Dassler in the consumer business. Now Horst Dassler can target international markets with far fewer capital restrictions requirements than the existing system.

Creating value in data economy

– The success of analytics program of Horst Dassler has opened avenues for new revenue streams for the organization in the industry. This can help Horst Dassler to build a more holistic ecosystem as suggested in the Horst Dassler, Adidas, and the Commercialization of Sport case study. Horst Dassler can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Horst Dassler can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Horst Dassler can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.




Threats Horst Dassler, Adidas, and the Commercialization of Sport External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Horst Dassler, Adidas, and the Commercialization of Sport are -

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Horst Dassler needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.

Consumer confidence and its impact on Horst Dassler demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Shortening product life cycle

– it is one of the major threat that Horst Dassler is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Technology acceleration in Forth Industrial Revolution

– Horst Dassler has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Horst Dassler needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Horst Dassler in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.

High dependence on third party suppliers

– Horst Dassler high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Easy access to finance

– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Horst Dassler can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Horst Dassler, Adidas, and the Commercialization of Sport, Horst Dassler may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Innovation & Entrepreneurship .

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Environmental challenges

– Horst Dassler needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Horst Dassler can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Stagnating economy with rate increase

– Horst Dassler can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Horst Dassler can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Horst Dassler, Adidas, and the Commercialization of Sport .




Weighted SWOT Analysis of Horst Dassler, Adidas, and the Commercialization of Sport Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Horst Dassler, Adidas, and the Commercialization of Sport needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Horst Dassler, Adidas, and the Commercialization of Sport is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Horst Dassler, Adidas, and the Commercialization of Sport is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Horst Dassler, Adidas, and the Commercialization of Sport is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Horst Dassler needs to make to build a sustainable competitive advantage.



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