Adidas is a company stemming from Germany and has been a forerunner in the athletics and footwear industry for quite a while (pun not intended). Taking the rung of the ladder, just behind the giant Reebok, it has continuously taken steps to match its rival and on occasions even out do the standards and impressions set up by Nike…
This strategic plan saturated the market making it more difficult for newer entrants to gain a step hold in the huge market. This move was also aimed at rivaling the sporting wears giant Nike. The acquisition was done in order to make the company more viable for consumers where they can create a synergy between both the companies so that they can challenge the rival. However, the acquisition led to mixed responses from the consumers resulting in a share value decline as well.
Just before the Olympics fever gained momentum, Adidas took the initiative to launch another promotional campaign where they have highlighted their products and the ambassadors. This massive promotional campaign was launched in Europe and one could see huge structures of either Adidas shoes being loaded on a truck, or football players standing in a circle. All these initiatives were highlighting the presence of the brand in the forefront of such a major even in sporting history, whereby players are supporting their attire etc.
The combination of the two big brands present in the shoe industry can termed to be a positive sign for the company. They can combine their efforts; match their strengths together in order to create a new level of a brand. However, there are threats of brand cannibalization which led to the main slump in prices when the merger news was spread around. ...
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