Adidas-Reebok Merger Essay Example
Adidas-Reebok Merger Essay Example

Adidas-Reebok Merger Essay Example

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  • Pages: 2 (509 words)
  • Published: February 21, 2017
  • Type: Research Paper
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German-based sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company. Besides sports footwear, the company also produces other products such as bags, shirts, watches, eyewear and other sports and clothing-related goods. The company is the largest sportswear manufacturer inEurope and the second biggest sportswear manufacturer in the world, after its U.S. rival Nike.

Adidas was founded in 1948 by Adolf "Adi" Dassler, following the split of GebrĂĽder Dassler Schuhfabrik between him and his older brother, Rudolf. Rudolf would later establish Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma.

The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated in

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to Adidas's current official logo. The company revenue for 2009 was listed at€10.38 billion and the 2008 figure at €10.80 billion.

Economical:

Adidas-Reebok Merger Adidas and Reebok have merged in an effort to better position themselves to take over Nike as the number one retailer in sports foot wear. In the beginning this merger seems to look optimistic with both Adidas and Reebok combining concepts and strong holds on the market. Nike, on the other hand, is not worried about them and is only concerned with themselves. Nike at the moment is still the leader in athletic shoes and still has contracts with the big superstars of sports, which helps there marketing ploy.

Adidas-Reebok Merger Risk: Expert say: “If Adidas and Reebok are relying solely on this merger to help put them over the top I'm afraid they will fail miserably”. He

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also continued: “History has shown us that just because two giant companies combine doesn't necessarily guarantee them the top spot. In truth it usually ends up a failure”.

Emerging Markets: Emerging markets are far more varied and volatile than mature ones. For example: the average income per person in China is around $3,500 and in India $1,000. Cultural complexities are confounding and tastes are extraordinarily fluid. People who are not used to brands flit easily from one to another.

Adidas is constantly trying to adapt to this issue. Adidas has created two kinds of shops—“local” ones that specialize in sportswear designed for Asian bodies and “global” ones that sell the same products as in the West. The shopping mall beneath the company’s regional headquarters in Shanghai has one of each kind.

Technological: ClimaCool ™ Technology

ClimaCool™ is the adidas technology designed to keep feet cooler and drier. It combines maximum functionality through a unique 360° ventilation system with progressive and stylish design. Each part of the shoe “breathes”, combining moisture management and maximum ventilation. The result is a shoe that helps the foot maintain its optimal temperature. With a new and highly visible technology, ClimaCool™ is adidas keystone.

AdiPrene ® Technology

Protection for one’s heel. Exclusive to adidas, adiPRENE® is an elastic material which responds to the cushioning needs of your moving foot. adiPRENE® absorbs impact forces, providing superior cushioning and protection. An adiPRENE® insert also provides both long-term cushioning and comfort.

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