06apr Adidas Presentation Group Project

April 24, 2006 MgtOp 590 Project

In order to grow their US market share, adidas acquired

Reebok in January 2006.

Calvin BishopDebra Hentz

Nikholas Christopher HubbardKaty Whitcher Kraushaar

John Williams


History shapes a company

• Started as German slipper makers in early 1920’s

• Grew into sports specialty shoes company

• Giving them away to Olympic athletes to gain publicity

• Went global in 1956 and in USA in 1968

• Several management changes and reorganization

• Core CompetenciesTechnology

Customer focus

Brand recognition

Supply chain

Collaboratively competitive


Key Success FactorsSportwear Apparel Industry

1) Brand Recognition

2) Technology Leadership

3) Marketing Skills

4) Retail Presence

5) Customer Recognized Value

6) Cost Controls


Reebok Acquisition• Reebok Core

Competencies

– Trend Identification

– Ability to market to a niche segment

– Women’s shoe design

– Design expertise

– Celebrity relationships

• Fills KSF gapsBrand recognition

Marketing skills

Customer Value & Retail Presence

Brand recognition

Brand & Marketing


Combined strength of adidas & Reebok

• Combine– adidas technology with Reebok design– adidas sports with Reebok women’s market– adidas shoes with Reebok apparel– adidas global strength & Reebok US strength


Implementation

• Blend the two cultures successfully– must learn to work together

• Protect the strengths of acquired company– keep development organizations separate

• Maintain both brands– keep established market share

• Capitalize on supply chain economies of scale– suppliers, manufacturing, distribution, channels

• Nurture the partnership between technology and design– grow market share by combining leadership areas


Good strategy?

• Yes, we believe so.

06apr Adidas Presentation Group Project

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