Discussion Forum (DF) Week 2: Adidas Reebok Merger
Companies can grow by merging together. ATT bought out Cingular Wireless a few years ago and Comcast and NBC/Universal were in talks to merge at one time. In the mid 1980’s Reebok Shoe Company bought out walking shoe company Rockport and performance shoe company Avia. A few years ago Adidas came along and bought out Reebok… Now all four shoe brands are still sold under their respective brand names, but Adidas is the parent company. Adidas could have bought out companies in other industries such as fast food, pet food, or consumer electronics, but they decided to stay within the shoe industry. Click the following links and read the articles about Reebok and Adidas: Adidas page 1.pdf Adidas page 2.pdf Adidas page 3.pdf Adidas page 4 End of Article.pdf ( I have attached the articles). For your first DF post this week please comment on at least two of these questions based on your ideas and information from the articles: (1.) What are the advantages to Adidas of staying within the shoe industry with their buyouts? (2.) What groups could possibly be harmed by this merger? Example: employees at Rockport, because often people lose their jobs when companies merge.. What other groups could be harmed and how? (3.) What could be some advantages to Reebok and the other companies of being bought out by Adidas? Example; Adidas is big in Europe and Reebok not so much. Reebok sales in Europe could increase…Other advantages…? You tell me… PS- Origin of Adidas name… The company was started in Germany in the 1920’s by German runner named Mr. Adi Dassler… Now put together his first name and the first 3 letters of last name and what do you get? 🙂 (true story)
