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Essay / Adidas Business Strategy - 1193
Adidas chooses to use natural fibers such as cotton, synthetic materials, wool, recycled rubber, recycled polyester and leather in its shoe production. By communicating and partnering with the local suppliers where the products come from, Adidas is able to make connections so they are in a better position to compete for the resources they need, so its competitors (Nike, Under Armour) will have more trouble. obtain resources. Asian countries and other countries like India, Pakistan, and Indonesia are home to most of the factories processing raw materials. One of the reasons why countries like these are chosen is that they are developing countries. Since these countries are less industrialized than developed countries, the labor cost is relatively low for planting, fertilizing and collecting 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, it can save a lot of money by outsourcing its operations to other countries. With more offerings to meet product demand, prices will eventually come down 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 they are