"Adidas has become that rare case study: a former market leader that's regaining its footing, after being all but crushed by an upstart rival like Nike." (money.cnn.com)
The Cost & Benefits for Subcontracting...
Since their manufacturing activities were concentrated in China and other Southeast Asian countries, most of these countries transact in U.S. dollars, the company was acquired about 70% to 80% of their outsourcing expenditure in U.S. dollars and Adidas revenue in U.S. dollars and other non-Euro currencies were lower than usual in 2005. Another cost for these foreign subcontractors is that these multi-international companies like Adidas are realizing that there are these other cheaper alternatives that are willing to push themselves, that are cheap and are willing to do what ever it takes to get this money they are receiving. In the last past five years, Adidas has pulled back on their money from bankruptcy and has gone public about their stock price being tripled , which had lead to a benefit of a clean debt free slate for the company.
Manufacturing activities were gathered closely around China and Southeast Asian countries, usually conducted in U.S. dollars which these companies had gained about 70 percent to 80 percent of their goods are outsourced from U.S. dollars and Adidas revenue in U.S. dollars and other non-Euro money were lower than usual in 2005. Foreign Subcontractors are realizing now that multi-national companies like Adidas know that there are cheaper subcontractor alternatives that are willing to push themselves, they are cheap with the payment of their workers and cheaper taxes, and more environmental problems.
Manufacturing activities were gathered closely around China and Southeast Asian countries, usually conducted in U.S. dollars which these companies had gained about 70 percent to 80 percent of their goods are outsourced from U.S. dollars and Adidas revenue in U.S. dollars and other non-Euro money were lower than usual in 2005. Foreign Subcontractors are realizing now that multi-national companies like Adidas know that there are cheaper subcontractor alternatives that are willing to push themselves, they are cheap with the payment of their workers and cheaper taxes, and more environmental problems.
Costs and harmful to the company itself is foreign workers. Labor markets in China and India have stricken the laws and rights of workers for these international companies, for example workers wages have improved dramatically because of the increase on them, added energy and things that workers may need to work healthy that were installed in factories. Suddenly the contracts that these foreign workers had were also changed. Another benefit for Adidas is that they end up paying less cheap money for these subcontractors to produce their goods which is cheap labor, while these U.S. consumers are paying a lot of money that would have been cheap if these factories were in the U.S.