Niyamath Parveez

All about Outsourcing

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Adidas fall foul because of outsourcing

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When it comes to sportswear, one of the most recognizable brands in the world is Adidas. Some people may prefer Nike, the phenomenon that grew in the United States in the 1970s but Adidas is definitely the other main contender, coming a long way since its German roots. What makes the success of Adidas all the more intriguing is that they have massively strong links and rivalry to Puma, another German manufacturer. What you may hard to believe is that both these firms started from the same, family, the Dassler brothers being the brains behind both outfits and the rivalry between the two has existed for many years.
Adidas can be seen on the world’s best soccer nations and players and with a World Cup year next year, it will be another massive year for Adidas. However, it is not just soccer kit that the company makes and every sport around the globe will have some element of kit or footwear provided by Adidas. This global brand ranks alongside the Coca Cola’s or Apple with regards to brand recognition and whatever they do, many others will follow. As blueprints for successful companies go, Adidas are certainly up amongst the best firms in the world.
However, they are currently experiencing some flak in the United States and it’s all because of the production methods for one of America’s best loved sports. Basketball is loved as a sport, the fast and frenetic style of play makes it extremely attractive to fans everywhere and an evening out at the basketball court is a great way to spend an evening. Adidas are amongst the best known companies who produce the kits and associated clothing range for many teams, meaning there is a captive fan base for a whole range of Adidas kit and products.
The main base for the production of NBA uniforms has been in upstate New York but Adidas has taken the decision to move its production base to Thailand. This has unsurprisingly caused upset and anger at the thought of losing so many jobs. Although Adidas is not an American company, their production factories have been part of the local fabric in many places throughout the country and this is hard to take for so many people. Outsourcing is a difficult topic for many people to comprehend. It can help a firm make a greater degree of profit by lowering their labor costs but there is a large human cost in taking this decision.
The fall-out from this move is unlikely to end here as politicians and experts weight in with their opinion. The fact that Adidas held an exclusive contract for making NBA kits has angered many people who feel that such a lucrative contract should not be outsourced outside of America. There is a lot of pride in American sport and for some people; the sport of basketball would be tainted if players were wearing uniforms made outside of the American borders. Sports fans are never shy in voicing their opinion so do not be surprised if there was a rising against Adidas for this work.

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Written by Niyamath Parveez

November 27th, 2009 at 2:22 am