Adidas and reebok merger marketing essay

It remained a family firm tillwhen it was transformed into a corporation. The company has over 14, employees, subsidiaries and sources from factories across the world.

Adidas and reebok merger marketing essay

The main theme of the mergers and acquisitions is to save the fainted companies and provide them with the financial aid or to capture the new business areas with the merging of companies in a same type of industry under the name of a single business entity.

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In this document, I have taken the example of Adidas and Reebok merger. Reebok was the second biggest sports goods maker in the United States and was the toughest competitors to Nike before the merger. Adidas and Reebok before merger Adidas was a premium branded sports equipment maker in the world where as Reebok is a medium segmented sports equipment maker.

Adidas has its strong presence around the globe and its distinguished premium branded products are sports shoes, footwear, sport equipment etc. Reebok has captured the diversified products like women apparel, sports apparel and sports equipment at very cheaper prices when compared to Adidas.

Mostly, Reebok has captured the women sector with the making of the products related to them.

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Both the companies want to merge and hence the presence of both the companies will be widened across the earth. Pre merger conditions Nike was the biggest sports goods and apparel maker in the world and it was posing very stringent competition to Adidas and Solomon group.

The United States was the biggest market for the sports goods and apparels. Nike is the biggest player in the United States. In order to fight the competition with Nike, Adidas with the strategy of expansion of the business in the United States, merged with Reebok which is one of the biggest sports goods makers in the United States.

Adidas and reebok merger marketing essay

Advantages due to Adidas and Reebok Merger The merger between Adidas and Reebok led to many advantages to both the companies. Though the brand names are not changed and made into single entity, both the brands as separate had many advantages due to the merger. Some of the important advantages which will change the face of the company in the next few years of the merger are: The merger led to the overlapping operations in the areas of athletic goods like sportswear, apparel, sports goods etc.

Thus both the companies can manufacture the goods and apparel with minimal fixed and variable costs. Also, the time for the manufacturing of the goods will be decreased drastically with the combination of the streamlined operations.

Each company is proficient in the manufacturing techniques and hence it would be helpful for both the companies with different brands to produce wide variety of sports goods, equipment and apparel.

Patents will be shared among the companies so that the upper and middle level products can be manufactured with the same patents. Both the companies are proficient in their own ways of manufacturing.

Adidas and reebok merger marketing essay

Both the companies can exchange the technological expertise in the optimization of the manufacturing processes, operations, human resources management and financial transaction management.

Adidas is good at the manufacturing of the sports apparel where as Reebok is proficient in the sports equipment making.

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Both can share the expertise in the designing process for the betterment of the operational processes. The merger had brought many cost cutting strategies to both the companies. With the merger, the companies can share the common marketing strategies, manufacturing processes and financial operations.

The employee exchange will be the most advantageous program of the merger through the companies can share the employee expertise and thus there will be lesser chance of hiring the new work force and reducing the costs.

The market analysts were doubtful about the merger being a strategy to withstand the competition from the nearest rival, Nike. Nike had strong market share in the United States and the European Union. With the merger, Adidas with the support of Reebok can outstand in the performance and can reach the rival Nike in the regions of the United States and the European nations.

Reebok which has very little presence in the Asian continent will gain power with the help of Adidas. The merger will lead to the capture of the businesses in the emerging markets.Free Essay: Competitive Analysis Parameters Price Medium to high Reebok is fresh brand, but not as trendy as Nike and Adidas.

And more marketing aimed at women. Sales at Reebok, which is owned by Adidas, climbed 22% during that same period. Adidas buys Reebok to give Nike a run for its money, writes Mark.

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adidas buys reebok,nike. Browse through our free accounting essays on accounting basics, principles, payroll, cash flow, depreciation, financial ratios, perfect for any student studying on an accounting course at any level.

The merger with Reebok will strengthen adidas in plombier-nemours.com most countries,adidas is significantly bigger than plombier-nemours.comr in India,Reebok has a larger share of the market. in India as a sales and marketing organisation,it is planning to set up a global procurement base for international markets.

Uncategorized Sports and Fitness Clothing Sales Market Key Factors – ASICS Corporation, Adidas AG, Reebok International Limited, Anta Sports Products Limited, Bravada International Ltd.

Aug 03,  · Adidas-Salomon is reportedly in late stages of talks to acquire Reebok International for about $ billion in deal that would reshape sports footwear and apparel industry; reported price, about. The merger between Adidas and Reebok in was an attempt of Adidas to capture US markets.

But the merger was not culturally fit as one of them was German and the other was American and it forced Adidas to pay a high price.

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