Order 6391146-APA- DQ1 Advantages and Disadvantages of Business Partnerships

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Nov 24, 2024

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Hello, Having previously read about the partnership between Adidas and Kanye West, the American rapper, I came to learn about the essence of partnerships in the global commerce spectrum. As you have pointed out the various advantages of the partnership between the two brands, I concur with you that if properly managed, such type of partnership (Licensing agreement) can bring profound benefits for both parties involved. For instance, working with a brand like Kanye West triggered an increase in sales of some Adidas products, particularly the Yeezy sneakers, making the brand successful. I also agree with you on brand enhancement, as the partnership improved Kanye West’s image in the commercial spectrum aside from his big name in the music industry. The partnership also enhanced Adidas’ brand among Kanye West, thus helping boost its sales. Despite the various advantages the partnership brought, I am inclined to agree that it also had disadvantages, such as the limited control Adidas had over Yeezy creativity as Kanye West had exclusive control, which disadvantaged the former. I agree that Kanye West’s problematic reputation might have been challenging to the company; thus, I concur with you that it led to significant losses when the partnership was terminated due to Kanye’s erratic and controversial comments on sensitive issues like anti-Semitism. I agree with you that the rules of engagement for each partnership or commercial entity differ across various industries or sectors. As a business-oriented individual, I am inclined to agree that when faced with making a decision regarding new tax laws on the partnership, I would have to consider the likely effect such laws would have on my share of the business and the business in general. Royalties earn an individual income from such a partnership (licensing agreement type); thus, I would also research the impact of tax rates on royalties, as such has a

significant effect on the financial attractiveness of the partnership. Celebrity partnership has significant benefits but comes with many risks, which I believe can hurt the partnership. I agree with you that what happened with the Kanye West and Adidas partnership had significant ramifications for the latter. As a celebrity and a global brand, Kanye was expected to remain controversy-free, but his nature could not allow that; hence his controversial behavior would cause Adidas significant losses, as you pointed out, to $655 million. I also opine that the partnership had significant strategic value, as seen by the loss the company experienced after it severed its tie with Kanye West. I agree with you that the new tax laws on partnerships would significantly impact the decision I would make regarding a partnership with any business. Higher taxes would significantly affect what I would make from the deal, making it less attractive. Therefore, based on all the above factors, I agree with you that the partnership was a good deal regardless of its ending hence, I would also make similar business decisions Kanye West and Adidas made.

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Order 6391146-APA- DQ1 Advantages and Disadvantages of Business Partnerships

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