This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
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.
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4 comments:
-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.
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.
Very tempted to not give you extra credit for this one, Carter.
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
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