The outsourced service providers help sport organizations focus on sales efforts to maximize revenue. Collected data were analyzed with descriptive statistics along with qualitative responses. The study found that the outsourced marketing firms focus on revenue generation through securing corporate sponsors. Primary inventories sold included commercials during radio broadcasts of games and signage at athletic facilities.
The Advantages of Outsourcing for Nike by Robin McDaniel - Updated September 26, The Nike brand is one of the most recognizable in the billion-dollar footwear industry, and the company is commonly known for its outsourcing practices. Nike Adidas outsourcing known for their shoes, but they have also branched out into the sports and clothing industries.
Nike has hundreds of factories and various subcontractors it uses to design and manufacture its products. Outsourcing has many possible advantages for the Nike Corp. Cuts Costs Decreasing overhead through outsourcing is a valuable resource for Nike.
Cutting costs by employing workers at a reduced rate or paying less for plant operation allows Nike to invest the additional profits into other areas of the business such as advertising, thereby increasing the potential for company growth. In addition, decreased operational costs are more likely to attract and retain company investors because more money can go into increasing business profitability.
Increases Competitiveness Because Nike is able to more efficiently produce its product and reduce costs due to outsourcing, it can more competitively price its products. This enables Nike to price its brand at a competitive rate with other companies that sell a similar product.
Decreasing competition can help Nike corner the market for its particular products.
Video of the Day Brought to you by Techwalla Brought to you by Techwalla Finances and Risk Reduction Outsourcing allows Nike to skirt some of the financial obligations it might face with the confines of tax laws in the United States.
In addition, when it outsources to subcontractors, Nike assumes less risk associated with producing its product such as insurance liability.VietNamNet Bridge - Adidas’ tendency of relocating production bases to places near major markets is expected to have adverse effects on Vietnam’s footwear industry.
At present, Adidas relies on over 1 million workers at factories in Asia. Adidas Sourcing Limited was founded in The company's line of business includes the wholesale distribution of sporting and recreation goods.
German sportswear company Adidas AG said Wednesday that it plans to shut down its only self-owned apparel factory in China, a move analysts said is a response to increasing costs in the country.
A shoe of the Adidas sports line is reflected in a mirror.
Photo by Reuters Major brands in the footwear industry are shifting their outsourced work to Vietnam instead of China, but experts doubt this will be a good thing in the long run. Leading brands like Adidas, Reebok, Nike, Kookaburra, Spalding and Rawlings are all outsourcing their worldwide requirements to the Indian sports goods industry.
It is because of the confidence of. Most Adidas products are outsourced; there are a limited number of company-owned factories, including ones in Germany, Sweden, and Finland.
Five company-owned sites operate in the United States and there are also three in Canada.