Adidas-Reebok Merger Amur

Bagauri

Adidas in 2005 announced its plan to acquire Reebok North

America in 2005 at an estimated value $ 3.78 billion. The
footwear market in North America was mainly dominated by Nike
with a 36% share and Adidas with its quality product and Reebok
with its stylized desing,planned to join their posobilities and create
the new brand product to increrase their market sales.The merger
between two this companies led to many advantages to both.
Though the brand names are not changed and made into single
entity.1) Overlapping operations, The merger led to the
overlapping operations in the areas of athletic goods like
sportswear, apparel, sports goods etc.2) Technology sharing,both
the companies are proficient in their own ways of manufacturing.
Both the companies can exchange the technological expertise in
the optimization of the manufacturing processes, operations,
human resources management and financial transaction
management.3) Cost cutting strategies, the merger had brought
many cost cutting strategies to both the companies. With the
merger, the companies can share the common marketing
strategies, manufacturing processes and financial operations.4)
Emerging markets, here we can put the strategy,wich contains
creating powerfull company to withstand the competition from
the nearest rival, Nike. Nike is the world’s largest sports goods,
apparel and equipment maker. Nike had strong market share in
the United States and the European Union.

Also there are some reasons of Adidas and Reebok successful

merger.On my opinion they create an enviroment of matual trust
between managers and employees, because its the most important
factor in creating effective ,well-run organization.Adidas is German
 Adidas-Reebok Merger Amur
Bagauri
company and Reebok an American entity.Secondly,they before the
merger fully learned each other very well on different aspects.Because,
the term organizational learning refers to the ability to integrate new
ideas into an organization’s established systems to produce better ways
of doing things. Adidas-Reebok is one such merger,where both the
companies managed to create a portfolio of new offerings while
keeping their individuality intact.They was working as like as one
machine, because while Reebok capitalized on its strong presence with
the youth , Adidas focused on its international presence and high-end
technology.And the last one ,they weren’t have a fear of economic
loss,because sometimes people resist change of fear, or foresee an
economic loss.Workers may disapprove of new processes , because
they feel that the results will be reduced wages.

At the end ,I think , that the most important things for successful
merger is to look up for more details and learn all about other
company,because a well-etched strategy, good management team and
an eye for details is what contain the nature of the successful merger.