Premium Essay

Steave Jobs Leader

In: Business and Management

Submitted By lena1
Words 1222
Pages 5
Adidas and Reebok Merger

Introduction
Mergers and Acquisitions generally refer to as the strategies that are followed in purchasing, selling or merging different companies by means of finance, strategies or management of the work force.
The main goal of the mergers and acquisitions is to save the fainted companies and provide them with the financial aid or to capture the new business areas with the merging of companies in a same type of industry under the name of a single business entity. For our presentation we chose Adidas and Reebok merger. Adidas was a German sports goods maker and was the world's second largest after its nearest rival Nike. Reebok was the second biggest sports goods maker in the United States and was a competitor to Nike before the merger. Adidas had a merger with Reebok and the merger was friendly and the deal was around US $ 3.8 billion.
Pre merger conditions
Nike was the biggest sports goods maker in the world and it was posing very stringent competition to Adidas. The United States was the biggest market for the sports goods and apparels. Nearly 47% of the sports market is in the United States and the annual sales are growing year by year. In order to fight the competition with Nike, Adidas merged with Reebok which is one of the biggest sports goods makers in the United States.
Strengths
The merger of the Adidas and Reebok gave rise to many strong aspects of the business operations and the market capture. The merger now will concentrate on making diversified products to the different segmented customers. The product line of the existing products of both the companies will be increased due to the constant up gradation and research. The merged company will have large markets around the globe and the share of the customers will be increased making Adidas the second biggest sports equipment maker and Reebok the third largest in the

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