...The Adidas - Reebok Merger ------------------------------------------------- Introduction On August 03, 2005, Adidas-Salomon AG (Adidas), Germany's largest sporting goods maker announced acquisition of the US-based Reebok International Limited (Reebok) for $3.8 billion. The share prices of both the companies recorded an increase on the day of the announcement of the deal. The share price of Adidas increased by 7.4% from €147.52 on August 02, 2005 to €158.45 on August 03, 2005 on the Frankfurt stock exchange, while Reebok's share price at the New York Stock Exchange rose to $57.14 on August 03, 2005, an increase of 30% over the August 02, 2005 share price of $43.95. The deal would result in the union of two cutthroat competitors through a "friendly takeover". 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. Nike International Inc. (Nike) was the common competitor for both Reebok and Adidas. | | Analysts said that the merging companies were alike in many ways. Both the companies had a reputation of using cutting-edge technologies to produce innovative products and both had eminent brand ambassadors from the sports and entertainment worlds. | Thus, the merger would help spreading the global appeal of the brands in places where they had not made a mark as individual brands. However, some analysts had doubts about the success of the merger...
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...Although the imminent success in the last few years,some issues have brought the company down. The pending issues that are troubling the company are the employees conditions abroad, the buying of reebok and it's sales drop last year 2012. In the website oxfam, which analyses the conditions of workers abroad, it is stated:" we asked Adidas to implement worker's rights in Indonesia". (Oxfam 1). The complaints relate to the the ongoing problems of not matching wages with the rising prices of food and supporting work abroad. This can become a greater issues because most manufacturing is done abrasive and foreign countries could rebel against western companies hence slowing down productions or damaging products. Source: https://www.oxfam.org.au/explore/workers-rights/adidas/talking-with-adidas/ Another issue is the acquisition of Reebok, although buying another company cuts competition it also bring greater responsibilities. According to article on sportsdailybusiness.com Adidas has not gained any profit from Reebok rather loss. As it states in the article that since the acquisition in 2006, Adidas has struggled to raise to power the brad, commercial irregularities have been caught and it has suffered through the NHL lockout. Buying companies may eliminate competition but can bring great loss to the company if the other company itself is doing midly poor. Source: http://m.sportsbusinessdaily.com/Daily/Issues/2012/11/09/Finance/adidas-Reebok.aspx Lastly but not least...
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...ADIDAS Adidas’s strategic vision is to be the “global leader in the sporting goods industry with brands which are built to a passion for sports and a sporting lifestyle (Adidas Group, 2014). Within this strategic vision we see Adidas’s value propositions, including passion, performance, integrity and diversity (Adidas Group 2014). Alongside with their value propositions, Adidas are highly customer focused and are continually improving the quality and design of their footwear. They do this so they can provide consumers with the highest level, allowing athletes to perform at their fullest potential (Adidas Group, 2014). Adidas’s four value propositions, which can be found on their website, is what drives their business vision. They are continually innovating and designing to enhance athletes performance. The firm believes they are the design leaders who help athletes achieve peak level performance with every product, in this case footwear, which they provide to the market (Adidas Group,2014). Integrity; Adidas believes in being honest, open, ethical and fair in order for consumers to create trust, with their footwear products. Diversity; Adidas encourage healthy discussions and allow for different opinions as they understand that every person is different in their own way. These value propositions are how the company is so successful. Adidas are Nike’s top competitor and follows closely behind Nike in world rankings (Sam, 2013). They continue to achieve profitable margins...
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...Five Forces Analysis on Competitive Forces Confronting Under Armour, Nike and Addidas Student Name University Affiliation Date Five Forces Analysis on Competitive Forces Confronting Under Armour, Nike and Addidas Under Armour, Nike and Addidas are leading manufacturer of footwear and sports accessories for children, men and women. This products are worn by athletes and persons with active lifestyles. Moreover, their products are sold in nearly all parts of the world with majority sales coming from North America. This paper Analysis five forces confronting Under Armour Nike and Addidas: superior supplier bargaining power, substitutes, new entrants, competition from existing producers and customer bargaining power. Superior supplier bargaining power is a common competitive force among the three companies. Though it is presumed that the three companies get their raw materials from several suppliers, and that supplier power is low. Suppliers form cartels and groups that help them negotiate higher prices for their supplies (Porter, 1979). Companies lack strength, to negotiate back, limiting their options and buy supplies at high prices which is common with Under Armor, Addidas and Nike. Substitutes are products that can be used in place of another product, they offer customers a wide variety of choices and can switch from one product to another with ease. This force offers a challenge among the three companies as customers choose...
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...ensuring high quality has been working to good effect as it has been dominating a performance apparel industry overcoming its rivals Nike and Addidas. So, their innovation and technology is their major strength. Similarly, products they introduced to the market are unique so they are going to enjoy the first mover advantage for quite a good time. This allows them to stay competitive in the industry. They have also been able to establish a very good brand image among customers. Their strategy of targeting athletes and active lifestyle has helped them to gain a lot of popularity among targeted customers. Apart from that its strength also lies on the athletic endorsements and players sponsorship. There are few weaknesses that Under Armour needs to consider. Most of the raw materials used by Under Armour are developed and manufactured by third parties. However, the company’s popularity is based on the innovation and uniqueness. So development of those materials through third party could be risky for Under Armour as they can be imitated. Similarly, when a product is unique, it has to be patented. Patents ensure protection over intellectual property. Absence of that is a weakness of the company. Weakness of Under Armour can also be pointed out by comparing its product line with its major competitors, Nike and Addidas. Nike and Addidas have huge product line. Where Under Armour provides just cleats and running shoes, Nike...
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...Nike: Nike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys, shorts, base layers etc. for a wide range of sports including track and field, baseball, ice hockey, tennis, association football (soccer), lacrosse, basketball and cricket. Nike sells an assortment of products, including shoes and apparel for sports activities like association football,[18] basketball, running, combat sports, tennis, American football, athletics, golf and cross training for men, women, and children. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding, association football, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing and other athletic and recreational uses. Nike is well known and popular in youth culture, chav culture and hip hop culture as they supply urban fashion clothing. Adidas: Running Adidas currently manufactures several running shoes. Football (soccer) One of the main focuses of Adidas is football kit and associated equipment. Adidas also provides apparel and equipment for all teams in Major League Soccer. Adidas remain a major company in the supply of team kits for international football teams. Adidas also makes referee kits that are used in international competition and by many countries and leagues in the world. Tennis Adidas has sponsored tennis players and recently introduced a new line of tennis...
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...Nike+ products and teamed up with Apple. This allows runners to sink their shoes with their IPods and it will allow them to see how far they have run, how many calories they have burned and also keeps time for them. Nike has also done this with their basketball shoes which allow players to link up through their IPods again. However this new design helps measure a player's vertical, quickness, and other aspects of their game. Nikes products keep improving with the time and there is no end in sight to what Nike can do with their products. Nike has many competitors in their industry. These companies include but are not limited to Puma, Underarmor and Addidas. These competitors drive Nike to strive for new innovations every day. Nike competes with Addidas in the basketball market. Nike owns over 80% of U.S. basketball market to as where Addidas owns only about 14%. Nike and Underarmor are major competitors in the work out clothing industry but Nike has the overall competitive...
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...The purpose of this proposal is to evaluate the effectiveness of the promotional campaign and decribe the marketing research techniques that used in the promotion campaign,i would like to choose addidas all in promotional campaign. Firstly,All in is mean features Adidas Sport Performance, Adidas Originals and Adidas Sport Style sub-brands in a single campaign,i would like to descprie of this campaign and point out the tools that adidas used to communciate the message Secondly,i have to show the specific communciation objectives for the addias all in and try to find out the various target audiences,it may be include the different audience in the campagn,after find out the audiences,we can outline the strategyand tactics adopted by this promotional campaign. Moreover,evaluating the effectiveness of two of the communication tools using the marketing research technique-Adertising and public relation,the main techniques may be Pre-testing and post testing in the advertising. Finally,after we were evaluated the whole promotional campaign of the addidas,we can see that how they work from the begining and the ending,you can conize the different promotional campaign method and process after we had done the proposal. 10. Conclusion In conclusion, the promotional plan presented above has the aim to increase Adidas brand awareness and products sales bychanging image of Adidas as a ‘fashionable’ clothes and not only forpractical use in order to be ‘the best’ brand in the...
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...INTRODUCTION:- Adidas AG (german pronunciation) is a german multinational corporation that designs & manufactures sports shoes, clothing & accessories based in herzogenaurach, Bavaria, germany, it is the holding company for the addidas group, which consist of reebok sports wear. Besides sports addidas also produces products such as bags, shirts, watches, eye-wear & other sports clothing related clothes. shoe designs typically feature three parallel bars. The companys revenue for 2012 was listedat $14.88 billon . Also known as Adi Dassler was born in Herzogenaurach, Bavaria, Germany on November 3, 1900. The son of Christoph Dassler, a shoe factory worker made his foray into the shoe making business when he was 20 years old. Adi had a passion to create a shoe specifically for athletes. He started in his mother’s laundry room using canvas and spare materials. With the assistance of his brother Zehlein (who made the metal spikes) and later his older brother Rudolf (who joined in 1924), the brothers formed the Dassler Brothers Shoe Factory. Adi made it a point to attend every major sporting event in an effort to convince athletes to wear his shoes. By the 1928 Olympics in Amsterdam, several athletes were wearing special shoes from the Dassler workshop. By the early 1930s, the company was making 30 different shoe brands for 11 different sports and had a workforce of nearly 100. The 1936 Olympics in Berlin offered a great opportunity for Adi as he equipped Jesse...
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...international business environment in which a selected organisation operates. The selected business I have chosen is Tesco. What is international business? International business is a term used to describe any business transaction between two or more regions or countries. Many businesses operate internationally to attract more custom and expand their organisations to increase the income the business is taking. International business can include importing and exporting of products, sales, investments and many more. International business is essential not only to give businesses more opportunities but also to boost the economy. Below is a list of some of the organisations that operate internationally: * MacDonald’s * Nike * Addidas * Apple * Samsung * Nokia About Tesco Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Over the years the business has continued to expand and grow and Tesco now operates in 12 countries around the world, employ over 530,000 people and serve tens of millions of customers every week. They have always been committed to providing the best shopping experience. Today Tesco continues to focus on doing the right thing for their customers, colleagues and the communities they serve. Tesco is Britain’s leading supermarket and is also very popular internationally. Its closest competitor is Sainsbury’s but Tesco always manages to have the upper hand as they offer so much more products and services...
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...Global Marketing Assignment Individual Q1 Assess the market opportunities and threats for the sport-shoe manufacturer, Asics which is planning to enter the ASEAN market? Ascis today is the forefront business and world wide performance in sports market industry and its currently the leading the running shoe brand athletes. The choice for providing comfort,support, and supirior rides. Ascis has made further developments in its products for both men and women.It has also reached the core of sports industry and sponsership like football and rubgy. Ascis has been in the asian market for many years markets mostly in Japan and well recognised in American continent,In some asian countries like Indonesia,Thailand, Singapore and Malaysia it is well knwon and still developling its brand name in some coutires. Ascis has not only focused on Sports wear but also concentrate on Apperals and expanded its sports shoe products from Running shoes to walking shoes, and football shoes. It is known in Singapore and Thailand the market share of ascis is low but still one of the leading brands. This paper mainly focuses on Ascis and Asean countries development and growth and how it impacts the buiness by entering their market. But this paper mainly focuses on major countries like Singapore and Thailandas they are the emerging market and high business prospects PEST analysis is used for understanding the growth or decline of the market this paper focus on PEST analysis of Singapore,and...
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...Product: Skechers initial items were utility-style boots and skate shoes; the organization has following expanded to incorporate a huge number of athletic, easy going and dress styles for men, ladies, and youngsters. World’s second best producer of footwears as all fashion footwear needs along with a wide varieties of socks, foot-care and shoe-care products. There are many competitors against skechers in the market like Nike, Addidas, vans, converse etcetera. Nike may be the top dog in the athletic footwear market today. However, Skechers is quickly gaining share in unexpected ways. So, here we have a comparison of price in between skechers and Nike that are: Product Skechers (price) Nike (price) NYSE $32.92 $0.01 (-0.03%) $61.59 $-1.01...
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...effort to encourage people to find happiness even in the most mundane things. “Most people wear great shoes but are embarrassed by their socks. They don’t dress up their socks because they think it is just a commonplace object of everyday life,” said an employee. “We want to challenge this concept of mundanity by asking people to be proud about their socks and to find happiness in the simplest of things.” To date, the socks are sold in over 70 countries and are known for their colorful and vibrant designs, quality, and craftsmanship. Their collaboration with Pharrell is the latests in a string of high-profile partnerships. Happy Socks has previously collaborated with notably Billionaire Boy Club, Paris Saint-Germain, Snopp Dogg, WESC, Addidas, Minecraft, Keds and Barneys New York among others. About Happy Socks Happy Socks is a Swedish company established by two friends in the Spring of 2008. Their philosophy is to spread happiness by turning an everyday essential into a colorfully designed piece that is of quality, craftsmanship. and creativity. The brand has since moved into producing briefs for both men and women and operates by the slogan that there is a pair of high-quality socks and underwear for every occasion, mindset, and style. For more information please visit https://www.happysocks.com/us/. ### ...
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...Public Relations Public Relations identifies and establishes mutually beneficial messages between them and the organization. Most times they deliberately plann and sustain effort to establish and matain a connection between and the organisation and the public. In the entertainment sector, my job will be to generate positive press and media exposure for their famous clients and make sure that their public reputations remain flawless. As a entertainment PR manager for a music group my everyday job will be very busy as I would have to keep the public talking about the group that I am representing. I will be dealing with television, radio, press and online media in all areas of intrest. Market research would be a start if I was to see a group for the first time, I would need to see what genre of songs this music group are making and what kind of people listen to their genre of music. In order of doing this I might have to phone up apple and ask for a chart of who is listening to the songs that Gucci Gang are making. At this point I would now have a particial set of audience that I can target. For example if apple gets back to me and tells me that people from ages 16 to 25 are listenting to my clients songs. I would then be able to find what my audience do in their speare time by holding events like focus groups to complete surveys. With this information I would then be able see where the target audience spend their time which will then lead me to be able to stategise on when...
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...industry grew by the spreading of positive reviews by athletes and consumers. Nike has created a positive image that has stuck to this day, and Nike remains the first choice for many athletes and consumers around the world. For example, by 1988 Nike's revenues reached to $1,203,440,000. In 1990, Nike opened Nike Town, which was the first retail stores for all Nike products. Nike still continues to grow, for instance it has bought Cole-Haan, Hurley, and Converse. The company’s main goal is to design and develop a world-wide brand of high quality footwear, apparel, equipment, and accessory products. Nike is mostly known for their popular and wide variety of shoes. There are many competitors that Nike has, for instance some of them are Addidas, Reebok, and Under Armour. Nike is setup as a matrix organizational structure, meaning there are multiple lines of authority. For instance, Nike has at least two managers in a single store and each employee reports to a team manage who then relays all progress reports to the department manager. Team managers and employees make decisions that regard specification and production while all department managers’ focus on...
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