C/B/377. Assessment of the rationale behind Adidas’ recent purchase of Reebok; Evaluation of the threats and challenges posed by the merger; and industry analysis of the sportswear industry

The write up attempts to critically evaluate the strategic reasoning behind Adidas’ recent purchase of Reebok. The author feels that product diversification and market expansion were the key motives behind the acquisition. In sync with the post-merger evaluation, the author also attempts to evaluate the challenges that decision makers at Adidas may face in operating enlarged firm. Also, with the use of the PEST analysis and the Industry Life Cycle, the student presents an objective analysis of the sportswear industry.