Adidas Company Profile

1181 WordsNov 7, 20125 Pages
Adidas Company Profile Adidas is a company based in Germany that primarily makes shoes and sports apparel that operates all over the world and one of the countries that Adidas does business in is China. Adidas uses a low cost strategy in China. Adidas believes that to get more business, it must lower costs to attract people who don’t make much money and those customers will see the quality of the product and continue buying products from Adidas. The cultural environment in China is different from Germany’s cultural environment. China has a strong structure where an order by a superior is expected to be obeyed fully and any questioning of that order would show disrespect. Seniority and age have a strong place in the power…show more content…
There are also local laws for foreign companies which Adidas must follow fully. This is different from Germany as the these laws are much stricter in China. Luckily, Adidas already went through this process. Adidas must also be aware of intellectual property rights in China. It should patent, copyright, and trademark all logos and products. There is a problem though as, “there is widespread violation and ineffective enforcement of law.”(“Top Eight Legal”). The laws about patenting, copyrighting, and trade marking are similar in Germany, but there isn’t as many issues with people violating the patents, copyrights, and trademarks and if there is an issue law enforcement handles it well. China handles disputes between two companies or parties by arbitration that should be in a clause in a contract. The clause is normally very specific with location, language to be spoken, and which country’s law will be in effect. This is to be done to get a fair deal that both sides can agree on. This is important as a dispute is sure to be had, so Adidas should know how this will be handled. Adidas handles mode of entry in China in two different ways. It is a wholly owned subsidiary and it licenses Reebok shoes when it, “has taken control of the distribution and license rights for the Reebok brand in China.” (“Adidas Group Takes Control”). Adidas can now license Reebok shoes throughout China. Adidas is a wholly
Open Document