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Adidas-Reebok merger, analysis of the international strategy

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Published date
documents in English
case study
9 pages
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Validated by
  1. Assessment of results
    1. Evaluation of profitability
    2. The current mission
    3. The objectives and policies of the company
  2. Evaluation of leadership and governance system
    1. Detailed analysis of competition
  3. Internal environmental audit and analysis of strategic factors
    1. SWOT Analysis
    2. BCG1 Matrix
    3. Doo Little Arthur matrix
    4. McKinsey Matrix
  4. Evaluation of Business Strategy
    1. Diversification policy
    2. Orientation toward service activities
    3. Autostrade, Autogrill and Stazioni Grandi, three dominant groups
    4. Telecommunications sector
  5. Recommendations
    1. Clothing
    2. The holding company
    3. Conclusion

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

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