Case Study on Adidas and Reebok Merger

Adidas and Reebok Merger Case Study:

Adidas and Reebok are the world leading multinational companies producing sportswear and sports equipment. Reebok is considered to be the oldest company of this type, because it produces sportswear since the end of the 19th century. Adidas on its turn is a quite younger company and it appeared in 1920 and started producing sports shoes.

Both companies have been developing gradually and very soon conquered the market of the whole world winning attention and respect of new and new customers. In 2000-s both companies reached the top of their development and the companies did not only produce sportswear but also played the role of sponsors of numerous football, basketball teams, etc. Of course, in the modern world of strict competition on the market both companies strived to win the leading positions in the world. The financial position of Reebok was quite unfavourable and Adidas suggested merging both companies into the single unity.

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In 2005 Adidas purchased 100% of Reebok’s bonds and made it its subsidiary. The major advantage of the merger is the conquering of new markets, especially the US markets, which is mostly controlled by Nike. Both Adidas and Reebok are supposed to be respectable and famous brands and such a merger is quite useful for Adidas, because it increased the number of its customers who have always purchased Reebok’s production.

The merger of Adidas and Reebok is quite an important event on the market of sportswear and sports equipment, because purchasing Reebok Adidas improves its positions and conquers additional clients winning new sectors of influence. When the student wants to prepare a good Adidas and Reebok merger case study, he should study the history of both companies and define the secrets of their development and success. One should observe the reasons of the merger, its positive and negative sides, cause and effect of this process, etc. In order to collect the right information on the topic one should apply for the help of the reliable sources and dwell on the major aspects of the problem. Of course, the merger is a delicate matter and the student should evaluate the process from his own objective point of view.

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