Abstract
Suppliers from emerging economies have been particularly active in acquiring brands from advanced economies. We analyze changes in the global value chain (GVC) of the sports shoe industry and show how hollowing out the asset bases of brand-holding firms through increasing outsourcing has enabled the emergence of rising power firms, as well as a new brand game and a market for brands. These developments in the GVC might be a future challenge for traditional brand-holding lead firms. We show that managers focused on branding and distribution issues were myopic towards the strategic initiatives of suppliers. Managers need to pay attention to the potential long- term consequences of outsourcing and offshoring activities, as suppliers could become competitors or acquirers of their order-giving firms, leading to the question: Are we approaching a state of dual GVC leadership, or do lead firms risk being kicked out by their suppliers?