Adidas and Cost Leadership
Cost Leadership is one of the constant topics brought up in Chapter 6. Cost leadership can be defined as "a firm that chooses a cost leadership business strategy focuses on gaining advantages by reducing its economic costs below all of its competitors."
Adidas has been able to master this concept by providing its consumers with affordable yet fashionable apparel. Adidas is able to be so competitive in this manner because they have an extremely productive and efficient supply chain. Their profit comes from the volume of sales being so high resulting in a large profit in the scheme of things.
Another way that Adidas is able to stay ahead of the game is that they have not only been able to provide moderately priced wear but they also provide clothing and shoes which happen to be pretty expensive, somewhat leveling the playing field.
Adidas' biggest competitor has always been Nike and this link shows you their strategy for keeping an edge over them in every way possible.
https://www.lawteacher.net/free-law-essays/commercial-law/adidas-the-quest-for-becoming-the-number-one-in-market-commercial-law-essay.php
Comments
Post a Comment