The Adidas - Reebok Merger

Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR177
Case Length : 21 Pages
Pages Period : 1997-2005
Organization : Vltas Ltd.
Pub Date : 2005
Teaching Note :Not Available
Countries : US, Germany
Industry : Footwear and Apparel

To download The Adidas - Reebok Merger  case study (Case Code: BSTR177) click on the button below, and select the case from the list of available cases:

Case Studies | Case Study in Business Strategy


For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Business Strategy Case Studies
Case Studies Collection
Business Strategy Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company

My statUS, Germany

Please note:

This case study was compiled from published sources, and is intended to be US, Germanyed as a basis for class discUS, Germanysion. It is not intended to illUS, Germanytrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous


Integration Issues

Adidas said the companies would grow as a combined entity but would retain separate management. The companies also ruled out any workforce reductions.

The new entity would continue to have separate headquarters and their individual sales forces. The companies would also keep most of the distribution centers independent and would have separate advertising programs for their brands. Hainer said, "The brands will be kept separate because each brand has a lot of value and it would be stupid to bring them together.

The companies would continue selling products under respective brand names and labels." Adidas declared that the deal would involve investment in both Adidas and Reebok. These investments would guide the companies towards effective consolidation.

The Track Ahead

Analysts had varied opinions about the deal. Some analysts felt that Adidas could beat Nike to become the industry leader. Al Ries said that, "The biggest benefit is that it removes a competitor. Now, all they need to do is to focus all their efforts on competing with Nike." However, a few analysts opined that it was impossible to dislodge Nike from its No. 1 position.

Nike was a preferred brand because of its fashion status, colors, and combinations. Although Adidas was perceived to have good quality products that offered comfort and Reebok was perceived as a 'cool' brand, Nike was perceived as having both 'hipness' and quality...


Exhibit I: Share Price Movement of Adidas-Salomon AG, August 2005
Exhibit II: The Three Stipes Logo of Adidas
Exhibit III: Product Profile of Adidas-Salomon AG
Exhibit IV: Financial Summary of Adidas
Exhibit V: Financial Summary of Reebok
Exhibit VI: Product profile of Reebok International Limited
Exhibit VII: Corporate Mission of Adidas
Exhibit VIII: Financial Summary of Nike
Exhibit IX: Top Sponsorship Deals of Adidas, Reebok and Nike
Exhibit X: The Swoosh Logo of Nike

Case Studies | Case Study in Business Strategy


Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.