Adidas

1. Adidas´ corporate strategy: Innovation and excellence in all three brands. One major product innovation per year in each product category required. Adidas relied on ongoing brand-building activities to further differentiate adidas, TaylorMade, and Solomon from competing brands of sporting goods. Adidas-Solomon management expected visible improvements in operating margins each year and anticipated that the company would achieve an overall 10 percent operating margin in 2006. Increased profitability in Europe, strong top-line and bottom-line growth in Asia, and steady growth in North America were expected. 2. After knowing the outcome, I evaluate the 1998 acquisition as a bad idea. At the time of acquisition it seemed like a great opportunity to gain market share and to overcome Nike in sporting goods business. Louis-Dreyfus´ objective was never realized, although the number one winter sports equipment producer was added to Adidas and the second largest golf equipment company as well. He really created the best picture for the company. The problem was that Salomon and TaylorMade had a net loss because they became less attractive in the sporting equipment market. 3. 4. Yes it made sense. The final acquisition of Reebok brought operating profits increase. 5. The promotion of all the sub-brands of Adidas will be very important. They have to make sure people will acknowledge the different brands falling under one company. Popularity of one brand may help the other. Market research will tell where and to whom to advertise. Promotion may greatly increase the market share for the