Reference no: EM132818963

1. Adidas' acquisition of U.S. competitor Reebok represents a major cross-bordertransaction.

(a) Please discuss the main advantages and disadvantages that may generally exist when acquiring a foreign company.

(b) Which of these advantages and disadvantages were particularly relevant for Adidas' decision to acquire Reebok? Can you think of other, unmentioned advantages and disadvantages that might have been related to the Reebok acquisition? Please back up your statements with appropriate reasoning.

2. In 2005, Herbert Hainer said: "The acquisition is a unique opportunity. Retailers will be delighted" (Hofer 2014a, p. 18). At the same time, only some analysts and sporting goods industry experts agreed, whereas others raised doubts regarding the acquisition. In your opinion, were retailers as "delighted about the acquisition" as Hainer expected? And which concerns of analysts and sporting goods industry experts were justified or proved wrong? In your answer, please also take account of the motives and concerns mentioned in the case study.

3. The brand positioning of Adidas and Reebok shows several similarities and differences.

(a) Please outline and contrast the global brand positioning of Adidas and Reebok after the acquisition.

(b) Comment on the strengths and weaknesses of the positioning after the acquisition with special emphasis on the measures taken by Adidas and Reebok from 2006 onwards. Do you think Adidas and Reebok represent suitable brand complements?

4. Please imagine you are a sporting goods industry expert and your task is to evaluate the integration of Reebok.

(a) Based on a strategic analysis of the internal situation and the external environment, was the integration of Reebok a success story? Please include examples from the case study in your answer.

(b) What recommendations would you give to CEO Kasper Rorsted with respect to future steps to integrate (or not integrate) Reebok into the Adidas Group? Please make sure to back up your suggestions with reasonable arguments derived from your strategic analysis.

5. If you were CEO Kasper Rorsted, which strategic decisions would you take over the next 3 years? Please elaborate in detail on corporate, business unit (e.g., for Adidas, Reebok and TaylorMade-Adidas Golf) and selected functional strategies (for instance marketing and purchasing).

Please note that, for some of the questions, the case study is only a starting point. You will have to search for additional information to answer the questions.