Cost cutting strategies: The merger had brought many cost cutting strategies to both the companies. This case study is meant to provide the deal details from the point of view of the Blackstone. Also, the time for the manufacturing of the goods will be decreased drastically with the combination of the streamlined operations. Reebok is a discount sports goods brand where as Adidas is a premium brand. The companies also ruled out any workforce reductions.
The company will have the sharing in terms of research and development, employee expertise, skill sets, operation methodology and human resources management. The share prices of both the companies have increased since the merger process started till the completion of the merger. A merger is a combination of two companies forming to become a new company, and an acquisition is the purchase of one company by another in which no new company is formed investopedia. Adidas and Reebok Merger Process and performance of the stock The merger between Adidas and Reebok took place in August, 2005. One should observe the reasons of the merger, its positive and negative sides, cause and effect of this process, etc. In Adidas and Reebok mergers, it can be seen that both companies facing pros and cons.
The ambiguity resulted by badly handled management issues in mergers and acquisitions have been the foremost grounds for these collapses. With the over dependence of the Reebok brand on Adidas will affect the sales of Reebok. When two companies come into a mutual conclusion, mergers and acquisition can derive both advantages and disadvantages for the company. Everyone has the potential to do great things. There will also be a discussion on the impact that the. The United States was the biggest market for the sports goods and apparels. It describes the recent trends and studies the ongoing merger in the sporting goods industry.
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. Its products available in 170 countries. Both the companies have their own strengths in the manufacturing of the goods and global market share. The substitute products of the premium branded Adidas will risk the brand value of the same. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma.
Reebok is considered to be the oldest company of this type, because it produces sportswear since the end of the 19th century. Mergers and Acquisitions is an extreme matter of concern in the corporate world since last few decades. Nike is the biggest player in the United States. Adidas shares rose more than 7 percent in Frankfurt trading. Ironically studies confirm that the majority of the mergers not succeed to convey the preferred results because of people associated concerns. Both can share the expertise in the designing process for the betterment of the operational processes.
Technology sharing: Both the companies are proficient in their own ways of manufacturing. The share prices of both the companies recorded an increase on the day of the announcement of the deal. Adidas and Reebok claimed that the merger was decided upon because of the realization that their individual company goals would be best accomplished by joining instead of competing. This will be an advantage for the Adidas group to capture the upper and medium level sectors of the customers thus making the merger is a mutual beneficiary for both the companies. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them. The share price of Adidas increased by 7.
Nike is the world's largest sports goods, apparel and equipment maker. Foster manufactured first ever shoes with spikes to help athletes to run faster. Both companies said the transaction could close during the first half of 2006. Diversity: We know it takes people with different ideas, strengths, interests, and cultural backgrounds to make our company succeed. The student who requires additional piece of help is able to use a free sample case study on Adidas and Reebok merger organized by an expert and follow his advice in formatting, construction of the paper and the right research of the case.
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. Considerably operational returns can be achieved when the two companies are pooled together and, in actuality, the target of nearly all mergers and acquisitions is to progress the company performance and shareholder value over the long-term. Advantages due to Adidas and Reebok Merger The merger between Adidas and Reebok led to many advantages to both the companies. It takes them about 14 days to ship from their factories in the Far East while Reebok can ship overnight. Your case study will be written from scratch. The share price of Adidas increased by 7.
Finally, the case ends with a debate on whether the merger would be successful. Worldwide known brandReebok is dedicated to providing each and every athlete - from professional athletes to kids on the playground. Mergers can help with entering…. So, it was an important opportunity for Adidas and Reebok to have a combined competitive strength over the leader Nike, a famous brand in its fashion, status, colours and combinations. The customers will have a wrong perception in getting accustomed to the brands if and only if the management is able to establish and clear off the doubts of the customers.