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Addidas and Reebok: Market strategy - Essay Example
Pages 14 (3514 words)
The takeover of Reebok by Adidas produced mixed reactions in the financial markets. Some consider it a good strategic move whilst others are yet to be convinced. The purpose of this report is to consider the validity of both arguments…
The takeover of Reebok by Adidas produced mixed reactions in the financial markets. Some consider it a good strategic move whilst others are yet to be convinced. The purpose of this report is to consider the validity of both arguments As a base from which to form a constructive evaluation we studied the history of both companies and the marketplace within which they operate, both in terms of size and the competition. In addition we have undertaken research into the business strategies of both businesses pre-merger together with the combined future strategy, which the new business envisages. Bearing in mind the current position reached in the cycle of globalisation in general, and the sportswear and equipment industry in general, it is our conclusion that the take-over/merger of these two businesses was the correct strategy to adopt. Our findings are based upon the current and future development of the industry. We also reflect upon the impact and possible threats that outside elements may pose to both the industry and, in particular, the organisation being studied.Adidas-Salomon AG formed Adidas-Reebok in January 2006 as a result of the acquisition of Reebok International Ltd. The purpose behind this was to reinforce the company as a global player in the sportswear and goods industry and to give it a stronger and more in-depth and diverse promotional and customer base across a number of sports and competitors. At the same time it expands their product range and enabled it to increase market share.
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