The reason for this is the lower cost of labor and raw materials. Adidas is a buyer driven commodity chain, meaning they work with wholesalers and retailers in export countries. The products that adidas make are labor intensive and are consumed by many people across the globe. The factories they’ve partnered with are expected to produce on Adidas conditions, in order to help both the factory and Adidas, thus helping them expand and gain greater margins. Adidas also hires suppliers and sub-contractors to be in contact with the factories, and when the products are finalized, they are sold by Adidas. I will argue that Adidas, since 1949 until now, has become a successful multinational corporation through their expansion of production and manufacturing overseas, their sponsorships, and through the quality of their …show more content…
They acquired Reebok in 2006, which were one of the top 5 sporting brands at the time. They’re also currently working with brands such as A Bathing Ape, an extremely popular streetwear brand. Although all their designs are originally made in Germany, they deal with subcontractors and outsource most of their products. Adidas clearly exemplifies a marketized commodity chain. Their product is welcomed with wide arms in their host countries, many consumers love their designs and the quality of their products. It’s quite clear that Adidas is shown to be greatly liked across the globe. In the beginning of 2016, their shares were about $90, and now it’s almost the end of the year and they’re at $140. They’re revenue has increased immensely between 2014-2015 and is shown in the figure