9/30/2005

Adidas-Reebok Merger

Adidas and Reebok have merged in an effort to better position themselves to take over Nike as the number one retailer in sports foot wear. In the beginning this merger seems to look optimistic with both Adidas and Reebok combining concepts and strong holds on the market. Nike, on the other hand, is not worried about them and is only concerned with themselves. Nike at the moment is still the leader in athletic shoes and still has contracts with the big superstars of sports, which helps there marketing ploy. If Adidas and Reebok are relying solely on this merger to help put them over the top I'm afraid they will fail miserably. History has shown us that just because two giant companies combine doesn't necessarily guarantee them the top spot. In truth it usually ends up a failure.

8 comments:

Elijah said...

I couldn't agree more! Nike has too much of a strong hold on the market and there isn't a chance that Reebok/Adidas could take them over. First of all, they're not doing anything to change the market, and demand on their product isn't going to be influenced simply because of the merger. I don't think that this will affect the economy/market at all.

taylor said...

I also agree. Nike has had a hold on the market share for quite sometime and I think that Reebok and Adidas need to do more than just merge together if they want to take over Nike.

Chloe said...

I'd also agree on this one. Nike does have a good grasp on things right now. Two followers put together doesn't equal a leader. I think it would be more beneficial for Reebok/Adidas to find some sort of niche and perform better than Nike in one area rather than trying overtake Nike.

Dr. Tufte said...

-1 on Mia's post for spelling errors.

We touched on this in Chapter 1 of the text. Most mergers are not a good idea, so I have a hard time with this one.

I do think that the opinions of Nike's strength are misplaced though. Companies can fall from the pinnacle pretty quicly.

Alex said...

I think that if Adidas/Reebok want to be a leader, they are going to have to get their name out there a lot more, not just merge together. I know that everyone knows about these brands, but when you think about the big athletes and what they wear, it's always Nike. It would be very beneficial if the other two companies could get their items on some of the big dogs in sports.

carter said...

Dr. Tufte said that most mergers are not a good idea. I agree they are a lot of examples of failed mergers.I think that this is a list in my opinion of failed mergers: Daimler Chrysler and Benz, HP-Compaq,AOL/Time Warner, Alcatel/Lucent, Excite/@Home, Mattel/The Learning.

Dr. Tufte said...

Very tempted to not give you extra credit for this one, Carter.

Shelly said...

In the beginning this merger seems to look optimistic with both Adidas and Reebok combining concepts and strong holds on the market. Nike, on the other hand, is not worried about them and is only concerned with themselves. Nike at the moment is still the leader in athletic shoes and still has contracts with the big superstars of sports, which helps there marketing ploy