Research - Case Study: International Business Strategy...

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Case Study: International Business Strategy Instructor: Dr. Verl Anderson Student: Alan Fernando Montes de Oca Noriega Toluca, Estado de México at August 09th, 2011. I will analyze in this paper the theoretical concepts in the case study " Adidas—Will Restructuring Its Business Lineup Allow It to Catch Nike?”
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Adidas started its activity in 1920 as a pioneer in the sporting goods market, as the first athletic footwear produced taking into account the fact that proper footwear can improve the performance of an athlete. This strategy helped Adidas gain a competitive advantage in Europe, mostly, and then in North America and Asia. This advantage of the first was completed with the innovation strategy that propelled Adidas among the best players in the market for sneakers. To maintain or improve their competitive advantage gained Adidas Salomon, one of the largest producers (first or second for different products or markets) of winter sports products, bicycle wheels and golf products. The company competes internationally, mostly offering products worldwide standard. Competitive strategy is almost the same in all countries. Facilities for the production company should not be considered because the production is fully or partially outsourced. The transfer of resource strengths and capabilities from one country to another to ensure competitive advantage is efficient, as it managed to stay at the top 4 players in the worldwide market. The strategy adopted by the acquisition of Adidas (the acquisition of Salomon and Reebok at the time) should help corporation to be the best in the market. This acquisition has allowed tightly integrated operations, creating more control and autonomy that an alliance could do. The pitfalls of the acquisition of Salomon were mostly related to difficult problems of integration, there were few synergies between the two corporations. Adidas is the production of summer shoes, while Salomon is to produce winter sports equipment, bicycle wheels and golf equipment. The two are different in what they are producing, but the acquisition was thought that complement each other. The fact that Salomon was acting in mature markets (cross-country team) or nearly mature markets (bicycles), or the regulations changed in their situation of disadvantage (golf team), putting more pressure on producers of certain income the decline of this new part of Adidas-Salomon acquisition. The difficulties were greater than expected, especially in achieving expected cost reductions, but had no difficulties so great in the exchange of knowledge (which helped to bring to market new features integrated into the ground control system implemented, both
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Research - Case Study: International Business Strategy...

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