Abstract The paper presents a projection of capital budgeting, dividend payout, and other decisions resulting from a move by Adidas from Germany to the United States, and its proposed merger with Reebok.
From the Paper "This paper addresses two questions associated with an assumption that the planned acquisition by Adidas Salomon A G Germany of Reebok International Ltd United States will be completed ..."
Abstract This paper discusses the financial characteristics of 2 specific companies: Nike and Adidas. It looks at how these companies were chosen because they are the respective leaders in the athletic footwear and apparel industry and both are publicly traded making information more easily accessible. It also shows how, because of their size and marketing leading financial performances, these companies are a strong gage of the overall global economy.
From the Paper "Nike is the acknowledged leading athletic footwear and apparel manufacturer and maintains more than 18,000 retail outlets, independent distributors and resellers around the world in over 140 different countries (Nike, Inc, 2004, p.5). Nike's products are considered high end and Nike's business model depends heavily on its in-house research and design (R&D) department which designs its products while the actual manufacturing process is outsourced to facilities overseas. In this sense Nike is more of a marketing and design firm rather than a manufacturer in the true sense of the word. Nike has its headquarters in Beaverton, Oregon, and continually improves and strengthens its brand primarily through savvy marketing campaigns and superstar athlete endorsements. "
A case analysis of the merger between Reebok International and Adidas-Saloman AG and a proposal to capitalize on the company's international marketing strategy.
Abstract This paper examines the Reebok International and Adidas-Saloman AG merger of 2006, to form a new company now effectively renamed the Adidas Group. The paper points out that Adidas acquired Reebok for $59 per outstanding share in a total value deal of $3.1b. It asserts that each company had an entrenched access to a major market that the other company desperately needed in order to maintain consistent growth rates. In Reebok's case, Adidas dominated the European market and the merger allowed it to piggy-back all of Adidas' established apparel, footwear and equipment sales and distribution channels. In return, Reebok gave Adidas instant access to the North American market allowing it to more effectively market its brand there without trying to grow it further organically and at much greater expense over the long-term. The paper posits that the relative success of the merger and the strengths that the combined company has across the global markets, particularly in China, ensure that Adidas' restructuring strategy will enable it to compete on a more even competitive footing with its main riva,l Nike. The paper concludes that, in order to fully capitalize on this strategy, Adidas should pursue the China market even more fervently and continue to lock up sponsorships across that market until the 2008 Beijing Olympics and the 2010 World Expo.
Outline:
Executive Summary
Environment/Industry Analysis
Competitive Profile Matrix
Strategic Action Plan
Company Situation Analysis
Value Chain Analysis
Financial Analysis
BCG Matrix
From the Paper "Since athletic wear and certainly athletic footwear are considered a luxury buy for most consumers, any economic downturn can have a deep and disastrous effect on athletic footwear or athletic apparel competitors' revenues. While the effect on sales of the recent natural disasters in the United States is not yet fully recognized, the continued high price of gasoline could have a long-term effect on sales growth in all of Reebok's product categories. Certainly inflationary pressures may negatively impact any retailer's revenues since inflation reduces disposable consumer income."
Abstract This paper presents a merger analysis of Reebok and Adidas-Saloman AG. It begins by providing an overview of each individual company prior to the merger. It then discusses environmental concerns for the industry and for the separate companies. The paper then provides a merger analysis and discusses the risks for the merger. It then analyzes and discusses the new merged company, The Adidas Group.
Table of Contents:
Abstract
Background and Overview
Reebok Overview
Adidas-Saloman AG Overview
Industry Analysis: Environmental Concerns
Competitive Profile Matrix (CPM)
Merger Synergies
Adidas, Europe and Market Access
Merger Risks
Financial Valuations
Merger Analysis and Discussion
Executive Summary
From the Paper "The technological aspect to the athletic footwear and apparel industry is clear-cut: identify new technologies relative to its products such as Reebok's Pump 2.0 technology in some of its products: "One of the Reebok Brand's product initiatives during 2005 will be incorporating our inflatable shoe technology, The Pump_, into a new selection of products" (Reebok, 2004b, p.12). Additionally, industry competitors must continue to push suppliers, manufacturers, and distributors to utilize the latest in technological developments to drive down overall costs or these industry competitors such as the newly created Adidas Group cannot remain internationally competitive in all markets (Davies, 2004). Since the pre-merger companies, Adidas-Saloman AG and Reebok, along with other industry competitors such as Nike, have been instrumental in creating many aspects of the global marketplace, they need to be especially vigilant in not falling victim to some of these global strategies they themselves spear-headed."
Abstract This paper explains that, while research indicates there is a belief that Adidas makes better footwear than Nike, Adidas has been unsuccessful in penetrating the young hip-hop crowd that has grown up with i-pods, blogs and video games. The author stresses that Adidas is looking to appeal to this younger generation through the technology that they have become used to using. The paper relates that, with this focus on technological innovation, Adidas is going high tech with everything from high tech sneakers, high tech virtual stores and high tech promotions. The author states that this high tech strategy is moving into its internal operations departments, adopting a better delivery system, increasing retail distribution and taking customer service to a new level beyond satisfaction to delight. The paper relates that this plan is trying to obtain return and possibly lifetime customers, which would be very profitable for the company.
Table of Contents:
Introduction
The Product
Promotion
Pricing
Place
Conclusion
From the Paper "Adidas is looking at the changing interests of the up and coming market who also have i-pods, video games, email, internet, youtube and other highly technological devises as a way of life rather than traditional television or print media. With this change in media delivery, there's also a change from it being one way to two-way communication, and with rapid advances in technology, they expect new and different things, and new and different footwear and sportswear is a way to reach that market."
Abstract The following paper gives an analysis of adidas supply chain management and discusses what Adidas? current position is in terms of the supply chain . The writer further examines what actions Addidas are taking to deal with the suppliers and buyers. Finally this paper investigates the relevant globalized drivers such as: market drivers; cost drivers; competitive drivers and government drivers and integrates all of these products into three specific consumer-group targeted divisions: FOREVER SPORT, ORIGINAL and EQUIPMENT.
Introduction
Overview of the footwear industry
Introduction
German market
Company information
General information
Strategic Business Unit (SBU)
Strategy
Brand Strategy
Global Market
"Street Ball" and Common customer needs
World Cup "Multinational company" battlefield
"Feel the Breeze"
Government Forces
Political Risks
Say NO to Indian Leather
Global Competitors
Nike
Global Challenges
From the Paper "Adidas have become successful because of the brand strategy they are using, also the focus on the quality of the products, which they produce. adidas feels that it can gain an advantage over competitors by making a product that which is extremely technologically advanced. While many companies in the shoe industry try to gain an advantage-using price such as Nike and Reebok, however, that the quality of their footwear make customers return. For the future, adidas look to expand the manufacturing to satisfy the large the demand for its products. The desire to increase its share in the market requires it must lower the cost of producing the products making the company more efficient.Furthermore, adidas must diversify to maintain high-level of trade and strength in order to have a bright future in the athletic footwear market. The strength of this market but will have to improve their products to retain the strong demand for their products."
Abstract This paper analyzes "The Impossible is Nothing" advertisement in which Adidas employs David Beckham, the English football star and international sports icon. The paper discusses the primary and secondary targets of the advertisement and how Adidas is successful in targeting them. It also describes the style and artistic composition of the advertisement, the symbols it employs and its intellectual appeal. In addition, the paper discusses the advertisement's format and presentation and how successful it is.
From the Paper "This marketing campaign will be very effective at changing and shaping the perceptions of the audience because its message is universal. That life presents challenges and impediments to all people regardless of income, sports star status, and image. The message is that everything is impossible is nothing is ever attempted. Regardless of outcome Adidas has crafted a message that does not emphasize winning or losing but rather the act of attempting something impossible just for the sake of doing so even when the outcome is recognized to perhaps not result in riches or even in success. The idea is that the attempt is worth the effort and Adidas wants to be the shirt or the shoes or the equipment that the consumer has on when attempting the impossible regardless of outcome."
Abstract The report details a market analysis for Nike compared to the Number Two competitor, Adidas. Among the findings discussed are the differing marketing and advertising strategies Nike has successfully used to beat out the competition. Part of Nike's success is due to the creativity utilized in marketing campaigns. It explains how Nike has also actively sought out celebrity endorsements and sponsorships, which have resulted in positive associations with the product, nationally and worldwide. Also discussed is the global positioning of the Nike product in Europe, the Asia-Pacific region, the Middle East, and the Netherlands.
From the Paper "Part of Nike's success is due to its commitment to specialization of product. For this reason I would not recommend that Nike branch out into too many other areas, such as offering additional excessive accessories or lines of other sportswear such as hockey products as Adidas recently did. Nike has purchased some subsidiaries that offer specialized lines, including some golf products, hockey wear and luxury sports wear. In this respect Nike has been successful, and the subsidiaries operate utilizing their own names still. Adidas has recently ventured into other territories, having similarly partnered with a major European corporation to sell accessories and other specialty types of sports products."
Abstract This paper compares and contrasts the marketing approaches and efficacy of the big three athletic shoe manufacturers: Nike, Reebok and Adidas. The paper focuses on the companies' websites, looking in particular at how the company markets itself on-line. The paper also discusses the companies' customer service strategies, as a marketing tool reflected on their website.
From the Paper "Three of the top names in sports shoes--Nike, Reebox and Adidas--have websites where their products can be purchased online. A study of these websites reveals the marketing tools and approaches each company uses to...."
Tags: Nike, Reebok, Adidas, sports, shoes, marketing, web site, customer service
An analysis of the athletic shoe industry with an emphasis on the segmentation, target market and pricing strategies of the athletics- industry giants.
Abstract This paper discusses the main players in the sports shoe industry: Nike, Adidas and Reebok. It examines the merits and marketing strategies of each brand individually and the global competition between them. It evaluates trends in the athletic shoe industry and shows how Nike, Reebok, Adidas and other sports companies are fitting in as the new fashion powerhouses although not in the same category as Giorgio Armani and Gianni Versace!
From the Paper "Nike builds its image by concentrating on the benefits of difference and diversity. In Ireland Nike is the governing brand among 12-13 year old males. Adidas is the second preference here, with Reebok a relatively distant third. Nike depicts the best way to adapt a product without depending on brand-name recognition or the withholding of product attributes. The personality of their product patronizes loyalty among people of different ages. Nike ads presenting women with icon of competition even victory and a motto of self-reliance describe a version of feminism that is affirmative with their aspirations. In Southeast Asian countries, Nike footwear is a symbol of class and status. The prices charged here are relatively high, since the disposable income is low as compared to United States. The Nike slogan, "just do it" revitalize people to believe everything is possible as long as you believe in yourself and does not give up. Hence, when purchasing Nike sportswear, customers do not only purchase the utilitarian product but recognize with the values and attitudes allied with the "Nike story". Nike footwear are well known, but its basketballs, golf bags, soccer pads, football gloves and watches are less celebrated. Nike products are produced all over the world and have to some extent monopoly in the sports-shoes business."
Abstract This paper looks at in turn three of the biggest sportswear companies, Fila, Adidas and Nike located in three different countries, Italy, Germany and America. For each company it examines the importance of its location, its primary advertising campaigns and its suitability for the global market.
From the Paper "The Adidas campaign focuses on elite sports stars but also has an emphasis on sport as a fun activity. The pictures of sports stars shown are not ones emphasizing the challenge of sport, but show the sports stars looking happy, including many of the photos showing the sports stars in poses and not in action. The football/soccer section shows David Beckham posing. The Anna Kournikova sections shows the sport stars in action, while also including more model-like head shots. In each of these cases, the emphasis is on the sports star looking good."
Abstract This essay shows that Nike's acquisition of Converse increases Nike's competitiveness as they increase their overall market share through entering the 'retro'-style sports fashion market segment with an established brand, Converse, without damaging the positioning of Nike as an ultramodern technology sports brand. The paper explains that compared to Adidas, Reebok and Puma which may weaken their core positioning by their brand extension strategy, Nike will keep leadership in sports without leaving the 'retro' shoe market to their competitors.
1. Introduction
2. Why Does Nike's Recent Acquisition of Converse Strengthens its Competition?
2.1 Market Segmentation
2.2 Brand Strategy
3. Risks
4. Conclusion
5. Reference List
From the Paper "Nike is the largest sports goods manufacturer in the world. For reason of simplification this essay concentrates on the sports shoe market only. The word "Nike" is used for both, the "Nike company" as well as for the "Nike brand".
Nike, as market leader, is especially known for its ultramodern, technology driven sports shoes serving under its corporate brand "Nike" the various sports categories: e.g. "Nike Basketball, Nike Running, Nike Tennis, Nike Golf" (Nike.com, 2003) with the 'best for athletes' image. This strategy is underlined by Nike's top sport star endorsements such as Tiger Woods, Andre Agassi, James LeBron etc.
The main competitors in sports shoes as well as in the other sports goods categories of Nike are Adidas, Reebok and Puma.
Converse, a relatively small sports shoe manufacturer, however with a long, 90 years' tradition is particularly famous for its 'Chuck Taylor Allstar', the first basketball shoe ever."
Abstract This paper discusses Reebok through a situational analysis and the use of a SWOT analysis framework. Particular attention is paid to its marketing strategies and its athletic endorsement agreements that have given it an advantage over it key rival, Nike. Further attention is paid to the pending merger between Reebok and Adidas and the advantages this combined company will have in the marketplace. Finally, recommendations are offered that suggest Reebok should expand its international markets and particularly its Chinese market.
Outline:
Abstract
Company Overview and Mission
SWOT Analysis
PEST
Financial Performance
Marketing
Recommendations and Conclusions
From the Paper "Reebok International is one of the preeminent brands in the sports and fitness products market, and specifically in the footwear market. Since footwear is its most obvious mainline product some analysts question Reebok's commitment to the athletic apparel and sports wear market that more than doubles the footwear market in size and scope. The recent announcement of the Adidas-Reebok merger is designed to address some of these concerns and to prepare the Adidas-Reebok behemoth to truly threaten Nike's hold on the athletic footwear, sports wear, and sports equipment markets (Adidas, 2005)."
Abstract The paper overviews the Reebok company and explains how Reebok makes their money. The paper relates that Reebok sources its products from around the globe, often times from developing nations where the cost of doing business is lower, but discusses how the company is lauded for strict rules in regards to human rights, engaging in what they call "ethical sourcing". The paper offers a personal opinion that Reebok is a progressive company which has made many excellent choices in recent years, notably their decision to herald fair-labor standards in their manufacturing plants and their acquisition and alliance with Adidas.
Outline:
Reebok
How Reebok Makes Money
Reebok's International Interaction
Reebok's Support of Human Rights
Opinion of Reebok
From the Paper "Reebok International is the #2 US maker of athletic shoes, second to Nike. They originated in the United Kingdom, started by J.W. Foster in 1890, with the intention simply to enable athletes to run faster. In answer to this conundrum, Foster created the first known running shoes with spikes in them. By 1895 he was making custom shoes by hand for the top runners in the world, under the company name of J.W. Foster and Sons. The family owned business made the running shoes worn in the 1924 Summer Olympic Games, which granted them international notoriety. The company would take on the name of Reebok in 1958, when two grandsons of Foster established the current name, attributed to a fast African gazelle. They were noticed in 1979 at a trade show, a North American distribution deal was established, which enabled them to grow to the company they are today."
Abstract This paper analyzes and examines Nike, one of the major shoe companies. Part II discusses the numerous marketing issues related to Nike, including distribution, price, and product. In Part III, the various issues associated with Nike, including the Chief Executive Officer's management style, employee and labor relations, and management structure are outlined. Part IV reviews the financial issues related to Nike, including a summary of the company's performance over the past 5 years, with ratios comparing Nike with other companies in the same industry such as Adidas, LA Gear, and Reebok.
From the Paper "When examining Nike's marketing practices, it is essential to analyze and examine distribution, price, and product. In terms of distribution, Nike utilizes a plethora of alternatives to advertise and sell its products. For example, Nike clothing, shoes, and other products are available for purchase from authorized Nike dealers such as Macy"s, Nordstrom"s, and almost every other well-known department store that sells sports-related clothing, shoes, and other accessories. In addition, Nike has its own store, Niketown, where its clothing, shoes, and other products are available for purchase. Lastly, consumers residing in Asia-Pacific (Japan, Hong Kong, Japan, and Taiwan), Canada, Europe (France, Germany, Italy), Latin America (Portugal and Spain), and the United States may purchase Nike clothing, shoes, and other products directly from Nike.com."
