The paper is about swot analysis of shoe companies

Swot

Table of Contents

Executive Summary......................................................................................................................... ii

Introduction..................................................................................................................................... 1

Situational Analysis......................................................................................................................... 1

Financial Analysis................................................................................................................ 1

Industry Analysis................................................................................................................. 2

Marketing Strategies and Trends......................................................................................... 2

Competitor Analysis............................................................................................................ 3

Customer Analysis............................................................................................................... 4

Sustainable Competitive Advantage................................................................................... 5

Impact of Laws on the Merger........................................................................................................ 6

Challenges Ahead for the Merger.................................................................................................... 6

Corporate Culture................................................................................................................ 6

Global Location................................................................................................................... 7

Conclusion....................................................................................................................................... 7

Notes................................................................................................................................................ 8

Bibliography.................................................................................................................................. 10

Appendix A: Financial Highlights................................................................................................. 12

Appendix B: Increased Consumer Spending in the Apparel and Footwear Industry................... 36

Appendix C: Changing Supply-Demand Economic Model.......................................................... 37

Appendix D: Innovation – NIKEiD.com...................................................................................... 38

Appendix E: Porter’s Five Forces.................................................................................................. 39

Appendix F: Market Graphs.......................................................................................................... 41

Appendix G: Advertisements........................................................................................................ 42

Appendix H: Magazines................................................................................................................ 43

Appendix I: Industry Leaders in Total Market Share................................................................... 44

Appendix J: Nike SWOT Analysis................................................................................................ 45

Appendix K: Porter’s Generic Strategies Framework................................................................... 50

Appendix L: Reebok SWOT Analysis.......................................................................................... 51

Appendix M: Adidas-Salomon SWOT Analysis........................................................................... 55

Executive Summary

The purpose of this report is to provide an analysis of the newest merger in the footwear and apparel industry between Adidas and Reebok. It is also to identify and further examine the ways in which the Adidas Group will achieve a sustainable competitive advantage relative to Nike. We inform the reader about the nature of current market standings in the industry and identify specific synergies developed through the acquisition.

Acquisition Analysis

A merger of this scale is inherently complex, dealing with issues such as global positioning of companies, corporate cultures, and the allocation of resources. To better understand the advantages gained from the Adidas-Reebok merger, we have examined the following:

Through these various analyses, we have discovered that the importance of branding is paramount for success in this industry.  Our research also identifies the specific danger of competition between Adidas and Reebok.

Conclusion

We conclude sustainable competitive advantage will be achieved relative to Nike, especially in regards to increased branding. However, Adidas-Reebok will not achieve a higher market share over Nike immediately, due to the length of time branding requires. After analyzing financial statements from all three companies, as well as conducting several analyses, including the industry, customers, competitors, and marketing strategies, it is clear to us that Adidas-Reebok strategically will be positioned better than Nike.

Introduction

Current Adidas CEO and Chairman Herbert Hainer recently stated, "We will expand our geographic reach, particularly in North America, and create a footwear, apparel and hardware offering that addresses a broader spectrum of consumers and demographics. With Reebok, we are advancing our position on the playing field of the sporting goods industry and are improving our financial strength to drive increased shareholder value." Throughout recent years, Adidas and Reebok have seen its competitors, particularly Nike, dominate the footwear industry.

Our analysis of the Adidas-Reebok merger shows how it will gain a sustainable competitive advantage that may one day dominate the footwear industry both domestically and internationally.  A sustainable competitive advantage is an advantage that one company has over another, but to be sustainable, the advantage must usually be rare, valuable and unique. The fact that Adidas and Reebok control such different aspects of the shoe industry will help to ensure their success.

This analysis includes information on the industry, consumers, competitors, marketing strategies, and changing market trends.  It also includes information on possible pitfalls for the merger, including antitrust laws that could prevent the merger from happening, as well as problems Adidas-Reebok could face if the merger does go through.

All three companies focus more on the athletic shoe industry than their other athletic products.  Therefore, our report focuses more on the shoe industry than the athletic apparel industry as a whole.