Topic > Adidas Business Strategy - 1193

Adidas chooses to use natural fibers such as cotton, synthetic materials, wool, recycled rubber, recycled polyester and leather in the production of footwear. By communicating and collaborating with the local suppliers where the products are sourced, Adidas is able to gain connections to be in a better position to compete for the resources they need, so its competitors (Nike, Under Armour) will have difficulty obtaining resources . Asian countries and other countries like India, Pakistan, and Indonesia are where most of the factories dealing with raw materials are located. One of the reasons why countries like these are chosen is because they are developing countries. Since these countries are less industrialized than developed countries, labor costs are relatively low for planting, fertilizing and harvesting raw materials. The second reason is that some of these factories are located in the tropics, so the climate is ideal for growing plants like cotton. So instead of planting cotton in Germany, where the company is based, they can save a lot of money by outsourcing production to other countries. With more supplies to keep up with demand for products, prices will eventually decrease and become more attractive to customers. The third reason is that these countries are also close to other countries where other resources can be found. Since I'm like that