country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Contemporary Demand Input Models

tag 0 Download5 Pages / 1,129 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss about the Contemporary Demand Input Models.
 
 

Answer:

Introduction:

Adidas, famously known as the ‘three stripes company’, is a multinational company headquartered in Herzogenaurach, Germany. Adolf Dassler founded this company in July 1924 and named it Gebrüder Dassler Schuhfabrik. In August 1949, the name was changed to Adidas. The company is a manufacturer of sports shoes, accessories and clothing. It is Europe’s biggest sportswear manufacturer and world’s second largest (Adidas-group.com. 2017). The Adidas Group is a parent company of Reebok, Rockport, TaylorMade-Adidas and golf company. 1996 onwards, Adidas has become one of the global leaders in the sportswear market, earning €14.88 billion in 2012 (Successstory.com. 2014).

The company started with manufacturing of athletic shoes and after the success of the shoes, it expanded its business into manufacturing of other athletic products such as clothing, accessories, perfumes, watches etc. It captured the industry with comfort, durability, style, price and brand (Tolani et al. 2013). The topic of discussion of this essay is the demand and supply side factors of Adidas athletic shoes. The revenue from the footwear segment of Adidas is worth of $10.68 billion in 2016 and the employee base of the company is around 60,617 across the world in 2016 (www.statista.com 2016). Today Adidas sponsors shoes and other sportswear to biggest teams of various sports in the world.

Demand for a commodity is the want or desire of the consumers to gain that commodity. Supply of a commodity refers to the accessibility of that commodity in the market in exchange for a price. Market equilibrium is the condition where the forces of demand and supply of a commodity are balanced and this value does not change if other factors remain unchanged (Varian 2014).

The major factors of demand for a product are the price of that product, income level of the consumers, taste and preferences, and market competition. The factors for demand for Adidas sports shoe are described below (Petroff 2013).

Price: this is the primary factor of demand for a commodity. Law of Demand states that demand is a function of price and there is an inverse relationship between the two. If price increases, the demand for that product falls and vice versa, other things remaining unchanged. Hence, if the price of Adidas shoes rise, the demand would fall and vice versa.

Price of substitute products: the demand for a commodity is affected by the price of a substitute product. Substitute products are those, which can be replaced with one another. The close substitutes of Adidas shoes are the shoes of Nike, Puma, New Balance, Reebok. If the price of a Nike shoe rises, it would push up the demand for Adidas shoe, as Nike becomes relatively costlier than Adidas (Pataki and Sagi 2015).

Income of the customers: Adidas shoes are normal commodities. Hence, an increase in the income level of the customers would lead to an increase in the demand for Adidas and vice versa.

Tastes and preferences of customers: this factor directly affects the demand for a particular product. Adidas became a market leader in athletic products because it provided the comfort and style to the customers. Thus, a majority of the population wants to buy Adidas shoes even if it is high priced.

Speculation of higher prices in future: if people speculate that the price of the Adidas shoe would increase in the near future, they tend to buy more now. This phenomenon occurs especially during the sales, when the company gives discount offers.

The law of demand for Adidas shoes. As the price increased from P1 to P*, quantity demanded decreased from Q1 to Q*. Here, price is the determining factor of demand.

 

The factors of supply for Adidas shoes are (Pataki and Sagi 2015):

Price: this is the major factor of supply for any commodity. Law of supply states, that price and supply of a good are directly related. If price increases, the supply of that good also increases, and vice versa, other factors remaining unchanged. Thus, supply is a function of price. Hence, when the price of Adidas shoes rises, the company increases the volume of supply of the shoes.

Cost of factors of production: as the price of any or all factors of production, that is, land, labor, entrepreneurship and capital, increases, the production cost rises too. Then the producers reduce the supply of the product to maintain profit. For example, if the wages of the workers rises, Adidas decreases the supply of the shoes temporarily.

Change in technology: the innovation and implementation of new and smart technologies increase the cost efficiency of the products, and profit margin of the producers. Adidas has implemented many new technologies in the shoe designing. It not only increased the demand for the shoes, but decreased the production cost also. Hence, the supply has increased.

Taxation policy: when the government imposes tax on the Adidas shoes, the price rises, as the company shifts the burden of the tax to the customers. Thus, higher tax leads to a fall in the profit margin, and fall in supply as well (Roscoe and Baker 2014).

Speculation of price fall: the expectation a price rise in the future tempts the producers to supply more of the product. When there is a speculation of price rise of the shoes, Adidas would supply more shoes to increase profit.

Depicts the law of supply for Adidas athletic shoes. When the price falls from P1 to P*, the supply also falls from Q1 to Q*. Here, price of the shoes is the determining factor of supply.

Conclusion:

Adidas is one of the global leaders in the market of athletic shoes and other sportswear. The German company has captured the athletic market of the Europe and majority of the rest of the world with its innovative design, style, brand value and comfort. This essay focuses on the factors of demand and supply for the Adidas sports shoes, which shows that price is the most important factor for demand and supply.

 

References:

Adidas-group.com., 2017. History. [online] Available at: https://www.adidas-group.com/en/group/history/.

Pataki, E. and Sagi, A., 2015, September. Contemporary demand input models in the conditions of imperfect competition. In Intelligent Systems and Informatics (SISY), 2015 IEEE 13th International Symposium on (pp. 189-194). IEEE.

Petroff, J., 2013. Demand and Supply. PEOI. org.

Roscoe, S. and Baker, P., 2014. Supply chain segmentation in the sporting goods industry. International Journal of Logistics Research and Applications, 17(2), pp.136-155.

Successstory.com., 2014. Adidas Story. [online] Available at: https://successstory.com/companies/adidas-ag.

Tolani, V., Puri, G., Quereshi, N., and Kaushal, S., 2013. Analysis on Footwear industry.

Varian, H.R., 2014. Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton & Company.

www.statista.com., 2016. Adidas Facts. [online] Available at: https://www.statista.com/topics/1257/adidas/.

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Contemporary Demand Input Models. Retrieved from https://myassignmenthelp.com/free-samples/contemporary-demand-input-models.

"Contemporary Demand Input Models." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/contemporary-demand-input-models.

My Assignment Help (2018) Contemporary Demand Input Models [Online]. Available from: https://myassignmenthelp.com/free-samples/contemporary-demand-input-models
[Accessed 14 July 2020].

My Assignment Help. 'Contemporary Demand Input Models' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/contemporary-demand-input-models> accessed 14 July 2020.

My Assignment Help. Contemporary Demand Input Models [Internet]. My Assignment Help. 2018 [cited 14 July 2020]. Available from: https://myassignmenthelp.com/free-samples/contemporary-demand-input-models.


Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp.com. We at MyAssignmenthelp.com deliver quality subject specific assistance on more than 100+ subjects. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.

Latest Management Samples

SWN018 Theories And Frameworks For Social Work Practice

Download : 0 | Pages : 11

Answer: Introduction There are numbers of practices and approaches to secure the human rights that includes various community practice, community intervention, community organizing, and community organisation. These practices can be practiced interchangeably with proper inclusion of the community organizing. The social work is a huge field where, people take care about every individual living and non-living entity within the community. To put...

Read More arrow Tags: Australia Theories and Frameworks for Social work practice. Queensland University of Technology 

ORG20003 Organisational Behaviour 3

Download : 0 | Pages : 11

Answer: Introduction Work-life balance is the most important part of an individual’s life as it helps an individual to align is personal and professional goals in the effective manner.  The work-life balance if manage effectively could led to high level of satisfaction among the individuals. In today’s world of busy life, it has become highly difficult to manage the work and home in the best manner (Anacleto, 2020). Huge...

Read More arrow Tags: Australia Collingwood 9 organisational behaviour Swinburne University of Technology 

MGMT20132 Innovation And Sustainable Business Development 3

Download : 0 | Pages : 9

Answer: Introduction The report is focused on further evaluating and refining the novel value proposition which was created in the previous assessment. Previously some innovative value propositions were suggested in view of the issues that are related to the operations of Qantas Airways. It was found previously that the two main challenges that are faced by the organization are big data management due to the constant changes in technology and...

Read More arrow Tags: Australia 9 innovation and sustainable business development Central Queensland University 

MMM343 Business Ethics 4

Download : 0 | Pages : 14

Answer: Introduction  Business ethics refers to study of business practices and policies in relation to controversial subjects such as insider trading, corporate governance, discrimination, bribery, fiduciary responsibilities and corporate social responsibility (researchgate.net., 2020). Businesses often use business ethics as guidelines for obtaining the approval of the public. In other words, business ethics includes- professional or a...

Read More arrow Tags: Australia north fitzroy 9 Business Ethics Deakin university 

DSRS4101 Arts Sports And Leisure Amongst Diverse Populations

Download : 0 | Pages : 16
  • Course Code: DSRS4101
  • University: Flinders University
  • Country: Australia

Answer: Introduction  The human crisis brought about by the Covid 19 pandemic, notably the fact that the virus is highly infectious and is capable of taking the life of the person ridden with it, has compelled people around the world to remain confined within their homes (Beaunoyer et al., 2020). Social isolation has been enforced by governments around the world to keep their people safe from being infected with Covid 19 as a consequence...

Read More arrow Tags: Australia Arts  Sports and Leisure amongst Diverse Populations Federation University 
Next
watch

Save Time & improve Grade

Just share Requriment and get customize Solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,361,360

Orders

4.9/5

Overall Rating

5,081

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

798 Order Completed

97% Response Time

Benjamin Blakeman

MSc in Medical Technology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1692 Order Completed

98% Response Time

Alfred Dodd

PhD in Computer and Information Science with specialization in Database

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

453 Order Completed

98% Response Time

Howard Asuncion

LLM in Criminal Law

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

248 Order Completed

100% Response Time

Lloyd Bernabe

MSc in Accounting

London, United Kingdom

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

great work. WOW. nicely done. good reference. great approach. one of the best assignment

flag

User Id: 424798 - 13 Jul 2020

Australia

student rating student rating student rating student rating student rating

I am very pleased with the turnout of my assignment! My stress level dropped dramatically with MAH\'s assistance!

flag

User Id: 383727 - 13 Jul 2020

Australia

student rating student rating student rating student rating student rating

At first, I started to lose faith in MYASSIGNMENThelp, then I was assigned a tutor that was able to take the suggested changes and went over and above the call of duty to complete my assignment. I am so thankful for this tutor. Can I work with you ag...

flag

User Id: 450083 - 13 Jul 2020

Australia

student rating student rating student rating student rating student rating

I have long awaited to give a 5-star rating and this EXPERT/tutor was able to review the track changes I requested and made those changes and even went over and above the call of duty to make sure my work was completed and done correctly. Thanks

flag

User Id: 450083 - 13 Jul 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?