Dissecting Adidas's Global Success Story: A Journey of Innovation and Ethics
What are the secrets behind Adidas's success from a VRIO standpoint?
From a VRIO standpoint, what are Adidas’s secrets behind its success?
Under what conditions would Adidas use outsourcing in manufacturing and labor-practice auditing?
In manufacturing and labor-practice auditing, under what conditions would Adidas use outsourcing? Under what conditions would it engage in the activities in-house?
Under what conditions would Adidas discontinue certain suppliers in its global value chain?
ON ETHICS: Discontinuing suppliers carries grave economic and ethical consequences. Hundreds of workers may lose their jobs. Some may sink into deep poverty or depression. Under what conditions would Adidas discontinue certain suppliers in its global value chain?
Adidas's Secrets to Success and Ethical Practices
Adidas's success can be attributed to its strong brand-building, innovation, and focus on product quality.
From a VRIO (Value, Rarity, Imitability, Organization) standpoint, Adidas's secrets behind its success lie in their ability to leverage their valuable and rare resources such as brand reputation, innovation capabilities, and quality control processes.
Outsourcing and In-house Operations at Adidas
In terms of manufacturing and labor-practice auditing, Adidas would consider outsourcing under conditions where it can benefit from cost advantages, specialized expertise, or scalability. Outsourcing allows them to tap into the manufacturing capabilities of suppliers in different countries and take advantage of lower labor costs.
Adidas engages in activities in-house when it is crucial to maintain direct control over the production process, ensure quality standards are met, or when they want to retain specific knowledge and skills within the company.
Ethical Considerations in Supplier Discontinuation
When it comes to discontinuing suppliers in their global value chain, Adidas would need to consider certain conditions that could warrant such a decision.
These conditions may include instances of serious ethical violations, persistent non-compliance with labor and environmental standards, or failure to address corrective actions after repeated audits and engagement efforts.
Adidas has successfully built a strong brand image globally through its innovative approaches to sport sponsorship, strategic marketing campaigns, and association with international competitions. This has helped them establish a positive brand reputation and gain a competitive edge in the market. Additionally, Adidas's focus on innovation and product quality has enabled them to stay relevant and appeal to the increasingly affluent young urban population. By continuously adapting to changing fashion trends, user habits, and manufacturing practices, Adidas remains a leader in the sports shoe and clothing industry.
In terms of manufacturing and labor-practice auditing, Adidas would consider outsourcing under conditions where it can benefit from cost advantages, specialized expertise, or scalability. Outsourcing allows them to tap into the manufacturing capabilities of suppliers in different countries and take advantage of lower labor costs. However, Adidas also engages in activities in-house when it is crucial to maintain direct control over the production process, ensure quality standards are met, or when they want to retain specific knowledge and skills within the company.
When it comes to discontinuing suppliers in their global value chain, Adidas would need to consider certain conditions that could warrant such a decision. These conditions may include instances of serious ethical violations, persistent non-compliance with labor and environmental standards, or failure to address corrective actions after repeated audits and engagement efforts. Discontinuing suppliers carries economic and ethical consequences, but Adidas must prioritize the well-being and rights of workers, as well as protect their brand reputation and maintain the trust of their stakeholders.
Adidas's success from a VRIO standpoint lies in their ability to leverage valuable and rare resources, manage their global value chain effectively, and uphold ethical standards in their operations. By maintaining a focus on innovation, product quality, and ethical business conduct, Adidas continues to thrive in the competitive sportswear market.