In early May 2005, the three stripes to Solomon resold just fewer than 500 million Euros to the former Finnish group Amer Sports cigarette. A few months earlier, in March, the specialist in slip Quicksilver seized 241 million Euros of Nightingale, the world's number one ski. Meanwhile, Nordica came under the control of Tecnica. At the end of last spring, the Lafuma group sports-equipment specialist nature has laid hands on the Bordeaux Oxbow.
Within a few years, the line between athletic equipment and apparel has gradually decreased. Thus, Adidas, Reebok and Nike have succeeded, using the same recipes that of the fashion groups, to sell their shoes sporty uses for everyday life. This enthusiasm for mergers and acquisitions makes us consider the case of redemption of Reebok by Adidas with a friendly takeover.
We will try to treat this case in three parts. Initially, we will analyze the Adidas homogenize its market share worldwide. In a second part, we will deepen the ongoing struggle between Adidas and Nike and Adidas gain that can be drawn from this takeover of Reebok. Finally, a third step, we will seek to highlight the issues arising from this merger.
The acquisition of Reebok by Adidas America brings to the latter, at its international strategy to double interest: to approach Nike, but also standardize its international presence through a stronger presence in the United States.
The combination of the two entities will help provide customers with a complete line of sporting goods. In fact, the two brands are complementary with two distinct identities.
The range of Reebok is very scalable, as the vagaries of fashion and it does not hesitate to completely remodel its collections according to current trends. Reebok is the leader in the U.S. in not only sports but also in the sports items category that can be worn daily. Indeed, some of the articles proposed by Reebok have been inspired by street wear.
Adidas, meanwhile, is a classic brand, more professional and rigid. A European leader in the field of performance, Adidas released a picture of technical expertise in sport. Adidas products are made to last.
Beyond the numbers, "spirits" of the two brands are made for each other. Football is "the flagship brand of Adidas," says Herbert Hainer, President of the German company.
For Reebok, it's a slightly different spirit: that of sport as a lifestyle, which uses the music world such as technology.
For this promotion, the brand was surrounded by hip-hop singers like Nelly, and joined American sports like basketball and American football. The two worlds are distinct, and the new group wants to create a supply of shoes and sports equipment that will target a broader range of consumers.
From a standpoint of brand, the Adidas brand is a good point by taking over Reebok.
Communion unites the two brands thus a maximum number of customers while avoiding cannibalization.
The combination of the two brands will take a reorganization of existing teams. Two worlds will work together to compare their working methods in order to learn together and enjoy each other's expertise. The experience curve of the new group Adidas Reebok therefore, climbs a step.
Tags: Adidas, Reebok, strengths of Adidas and Reebok, Adidas Reebok merger
[...] rival Reebok International for $ 3.1 billion 3.8 billion). According to the European Commission, this transaction does not distort competition on the European market, between the two companies with different brands and strategies. "The image of Reebok in European markets is weaker than those of Adidas or Nike the global leader," said the Commission. "Adidas is perceived as a professional brand, with technical guidance and strong European roots. Reebok is predominantly for young people and women," with a "leisure" positioning and has a greater presence in North America and Europe, due to the European antitrust authorities. [...]
[...] The group becomes a preferred partner of many sports, known and recognized internationally in their respective sports. Moreover, beyond "sponsoring athletes” the group will now receive an official license in 5 "premier league" in the United States that are the NBA (basketball), NFL (American football), NHL (hockey), MLB (baseball), MLS (football or soccer), which widely promote brands. In Europe, the brand is also the official sponsor of the UEFA Champions League, which will retain a dominant position in its favorite sport is football. [...]
[...] Both teams therefore aim to increase their innovations in order to offer their customers products which are always at the forefront of technology on a majority of the most popular sports in the world. From a managerial and communication point of view, the merger will allow the two entities to benefit from the expertise of Reebok across the Atlantic in terms of communication and events. Indeed, Reebok has a youthful image and trend in the United States. The image of Reebok will be able, in turn, to benefit from the support of the expert image that Adidas holds in Europe. [...]
[...] Adidas and Reebok by merging, expect to achieve more than 125 million inn economies of scale in three years. Nike challenges Adidas on its own ground The U.S. giant is keen to take advantage of the Adidas football market. Showcasing Adidas, football has become a sport in which Nike has invested heavily and would reap the fruits of its research and development. Indeed, the American brand already sponsors Brazil for the modest sum of $ 200 million and sales have sold a million jerseys of FC Barcelona for the 2004-2005 season alone. [...]
[...] The acquisition of Reebok by Adidas brings to its international strategy a double interest : it moves closer to Nike but also homogenizing its international presence through a stronger presence in the United States / HOMOGENIZING THE INTERNATIONAL PRESENCE - A more balanced range of products to meet consumer needs The combination of the two entities allowed them to offer customers a complete range of sporting goods. Indeed, the two brands are complementary with two distinct identities : - The range of Reebok is highly scalable, depending on the vagaries of fashion and not hesitating to completely remodel its collections based on current trends. Reebok, the U.S. leader in sports as well as in sports articles can be worn every day. Indeed, some of the items offered by Reebok inspired street wear. [...]
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