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(Editor: admin)& Nbsp; & nbsp; & nbsp; & nbsp; Translator's note: Adidas acquisition of Reebok footwear is a major event in the world, involved in all aspects, especially the integration of the corporate culture and brand strategy mix, thorough analysis of this article, there are many available Advisory learn from. The new company will replace Nike to become the world's first sports shoe manufacturer in the future, we'll see. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; David & nbsp; Cho & nbsp; (MBA Business School, University of Michigan) & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; 2005 early August Adidas - Salomon announced that it will be $ 3.8 billion acquisition of Reebok International Ltd., the transaction attention was mainly due to it ranked second and third in the sports shoes and apparel companies together, thus creating a large company with annual sales of $ 11 billion, the Nike 137 billion in sales to become the market leader. However, the deal also attract attention due to the differences between the two companies in the brand's history, corporate strategy, target markets and consumer groups. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; unlike other mergers and acquisitions, CEO Herbert Heller adidas (Herbert & nbsp; Hainer). Firm, said the two companies will retain their headquarters and continue to sell existing brands products. Adidas will retain the company's headquarters in Germany as well as in Oregon & nbsp; Portland (Portland) North American headquarters, while Reebok headquarters will remain in Canton, Massachusetts (Canton) in. Adidas believes the two companies will together form a complementary stronger company across the region, sports and consumer base. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Reebok acquisition raises two questions in particular: the two companies really form a more powerful business? If so, the new company can be strong enough to replace the Nike first position and proved to be worth it? Business School curriculum assessment Reebok acquisition provides a practical framework. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Finance and Accounting & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; conditions of this $ 3.8 billion transaction is the Adidas share to pay $ 59, compared with Reebok's closing in August 9th of price higher than the 34% surcharge. Not surprisingly, news of the deal to promote Reebok's stock on August 10, up $ 13.19 to $ 57.14 closing (Reebok's stock on September 9 has fallen to $ 56.70). September 9, Adidas shares rose in the German stock market up 7.4%, while Nike's stock rose $ 1.09, to $ 86.92. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Goldman & nbsp; Sachs analyst Margaret Margaret (Margaret & nbsp; Mager) in a research report wrote:. "This is for shareholders Reebok for this appears to be a great deal, because if Reebok's earnings to support its stock rose $ 59, then this will take many years for Adidas shareholders, we believe this is a big problem that needs to digest, talked about these difficulties, it has to compete with Nike and has a global brand strength & nbsp;. & nbsp; & nbsp; & nbsp; & nbsp; legal, historical and dissemination of & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; The deal requires shareholder and US and European anti- Antitrust regulators approve, the two companies said the deal could be completed in the first half of 2006 & nbsp;. & nbsp; & nbsp; & nbsp; & nbsp; marketing & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; However, for such a transaction Assessment will involve liquidity, profitability and other aspects, it also relates to the fact that the brand, market share, short-term and long-term strategies Heller said the two brands will remain separate, but in competition with Nike which will be complementary to & nbsp;.. & nbsp ; & nbsp; & nbsp; & nbsp; However, "Sports Executive Weekly" senior contributing editor Matt Powell (Matt & nbsp; Powell). presented the opposite view, & nbsp; "If they really going to like them run the last two Brand - competing with each other - will not have much synergies. "& Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; as a brand, adidas has been able to rely on its long-term sporting tradition, in order to provide consumers a reminder of this tradition, Adidas launched last year at a cost of $ 50 million advertising campaign, with the slogan "Nothing is impossible" (Impossible & nbsp; Is & nbsp; Nothing), the use of the past and present athletes, such as Muhammad Ali (Muhammad & nbsp; Ali).. and David Beckham (David & nbsp; Beckham), however, this fact did not stop Nike surpass Adidas in 1990 to become the market leader & nbsp;. & nbsp; & nbsp; & nbsp; & nbsp; perhaps Adidas follow Nike's footsteps in the market, Nike's acquisition of Si Date (Starter) for it to enter discount Market shop while retaining the Nike brand as a high-end consumer features, however, Adidas can also create a similar multi-brand strategy, Reebok and Adidas for the discount sales as a high-end product, Reebok CEO Paul Fireman (Paul & nbsp;.. Fireman ) said that Reebok will not be set to a discount or mid-level brand, but will be a more high-end than it is now brand & nbsp;. & nbsp; & nbsp; & nbsp; & nbsp; This action would seem to be created between Reebok and Adidas More intense competition these years, Adidas has been characterized by its high-quality products of well-known high-tech, Adidas recently launched called value Adidas running shoes One of $ 250, which is installed inside the sole of a small motor and microchip. & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; In contrast, Reebok, long-term to the popular aerobics shoe manufacturer and famous, recently in the rapper Jay-Z and 50 & nbsp; under Cent propaganda into casual shoes Market will link it with the stylish city consumer groups, however, there are more high-end does not necessarily mean better quality, if the acquisition of Reebok will it simply as a fashion and sports culture of the brand, that not much The significance of fashion has closely together with the high-performance products, and Nike has shown that a single brand can successfully create both Michael Jordan has his Air & nbsp;.. Jordans shoes, and Nelly (Nelly, American rapper ) had his Air & nbsp; Force & nbsp; Ones Shoes & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; someone has recommended that Adidas - Reebok with the top athletes of the promotion plan to provide more powerful fashion brands to weaken Nike, people concerned. if the two companies really planned to maintain the separation of words, this transformation will be how to achieve & nbsp;. & nbsp; & nbsp; & nbsp; & nbsp; From a market share point of view, this plan acquisition of Reebok will Adidas US market doubled to 21 percent, will help Adidas hit women, young people and city dwellers, these are the more successful aspects of Reebok. In order to objectively look at this figure, Nike now controls 37 percent of the US market and 33% of the world market. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Corporate Strategy & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; retaking market from Nike, where outside, Adidas obviously started to Nike areas where it once ruled - such as football, to make a positive response. Nike has signed Europe's top football team, such as Manchester United and Arsenal. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; However, the two companies remind too early now to say ???????? how detailed the operation of the two brands, Firman failed to explain how the two companies together will compete with Nike , which raises a question: Firmin is reluctant to tell our brand strategy, or he just does not know it? & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; one is simplistic strategy, which has been described by one in some of the new article, Adidas in football and running aspect is very strong, while Reebok is in American sports, such as American football, baseball and basketball very successful. Adidas is very popular in Europe and Asia, while Reebok's sales are mostly from North America. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Some articles also like to mention Adidas has been with the footballer David Beckham and soccer club Real Madrid. (Real & nbsp; Madrid) cooperation, while Reebok has been with the NBA Players Ellen. Allen Iverson (Allen & nbsp; Iverson) and Yao Ming together. This simplistic question Adidas has been with Tim & nbsp; Duncan, & nbsp; Tracy & nbsp; McGrady & nbsp; and Kevin & nbsp; Garnett cooperation, another problem is adidas basketball or American football has been sold and football is almost the same amount. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Heller said: "This combination will provide us with all the major sports categories of products around the world, Reebok in American sports such as NFL, NBA aspect was particularly strong, while the Adidas FIFA World Cup, Olympic and European Champions Cup very strong "& nbsp;. & nbsp; & nbsp; & nbsp; & nbsp; However, in the US apparel market, for tends demand professional recognition clothing in recent years has been reduced, it may be fashionable sport The epidemic proved that it promoted the development of professional sports equipment turning a wider range of licensed apparel sales steady growth, fashion sports fans every year tens of millions of them in different groups have different favorite athletes. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Adidas and Reebok strong joint in the professional sports field also does not solve the Nike strong position in university level in, even though Michigan (Michigan) may not be a good example, the majority here Students may have more licenses of Michigan apparel instead tend licensed professional football, baseball and basketball apparel, and most come with costumes Michigan permission to fly Nike hook at the top. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; a strategy is not often mentioned is relative ???????, Reebok has a leading position in the field of women's movement, particularly with regard to fitness. Adidas may consider the use of Reebok as a brand to meet the needs of femininity and fashion, but in America, soccer and running for women is relatively popular sport, but it is Adidas's strengths. In the fitness field, this strategy seems to be more reasonable. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; microeconomic (well, not really) & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; economists door often written market equilibrium theme, related view is that It has been mentioned that market success requires minimum critical size, can not be smaller than your competitors too. It has been pointed out that both Adidas and Reebok in the US market are too small to be able to replace Nike. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; a possibility of this acquisition is that the two companies are likely to realize they can not go beyond Nike on the past that segmentation of the market, Nike has a share of almost 30, and Adidas and Reebok each have almost 10% share of sports shoes and apparel review recent history, for Nike, Adidas and Reebok, or other major action with little success. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; For example, if you choose to become more fashionable, Adidas, Reebok and thus take away share from there, then, that decision will probably be stricken losses on Nike's efforts to share the race. If you choose to win Nike Adidas share in the traditional and reliability, that decision will result in the latest fashion trends will share lost to Reebok. This data does not indicate the market share of the three companies in all markets and different population structures remain stationary, but from a larger perspective scene brand war between three companies show a balanced structure has been established a. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; World Economic & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; acquisition may be successful in China, Adidas and Nike have tried in the world's most populous country foothold, Adidas and Nike are active in China shop, Adidas also sponsors the 2008 Beijing Olympic Games. Although Reebok and Yao Ming have cooperation, but it tentacles in China it is still quite limited. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Adidas and Reebok both say they do not intend to modify the sponsorship contract. It is estimated that Adidas may someday Yao in China will go under the trademark Adidas, because cooperation with Yao as it relates to represent a tremendous asset basketball and China, the cost paid by Reebok seem unreasonable. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; management and organization & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; When a company looking for a merger or acquisition target time, all three with often will be considered: strategic mix business with and cultural mix . Strategic mix includes such things as long-term goals and the company's image, Adidas and Reebok seems to have a strong strategic match, because both are committed to catch up with Nike to become the first. Organization with not too concerned about the place here, since the footwear and apparel regard the existing business operations and intends to maintain the separation of business decisions. Cultural mix including decision-making style, trust and teamwork. - For all these mergers and acquisitions are particularly important. Studies have shown that lack of cultural mix is ??often the primary cause of unsuccessful mergers and acquisitions, experts said Adidas and Reebok are almost polar opposite business cultures. & Nbsp; & nbsp; & nbsp; & nbsp; & nbsp; Another way to ponder the deal is in the rise of the market among growing small companies often choose M & amp; B in the case to continue their growth, small companies aware of their limited resources allowed a lasting competitive, therefore decided to merge to get success, rather than remain independent so that failure. Adidas and Reebok are opposite case, the two large long-term competitor in the market has already established battle for decades, Adidas and Reebok consumers, athletes and sponsors various sports organizations and teams License in competition with each other. Even short-term and long-term financial, strategic and operational aspects of both have all worked out, Adidas, Reebok will also have to deal with the combined company is considered the most difficult part: different organizational cultures mix. & Nbsp;