Answer to Question #187254 in Microeconomics for Hunna

Question

How does adidas manage their cost of production and became successful?

Answer 1

Thanks to the high quality of manufacturing, innovative materials and successful brand identity with the famous three stripes, the company instantly made it to the top. The pricing strategy that Adidas uses is an example of the high low pricing strategy. The high low pricing scheme is a scheme where the prices of the products are generally kept higher than the competitors but the company uses promotional discounts to offer lower prices and attract consumers.