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Adidas acquired Reebok primarily to _____.

A. overcome its competitive disadvantage against Nike
B. get access to the superior technology of Reebok
C. overcome its principal-agent problems
D. pursue an unrelated diversification strategy

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User Bklyn
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1 Answer

7 votes

Final answer:

Adidas acquired Reebok to better compete with Nike in the athletic footwear and apparel market by leveraging Reebok's North American market presence and connections in basketball and women's sports.

Step-by-step explanation:

Adidas acquired Reebok primarily to overcome its competitive disadvantage against Nike. The goal of this acquisition was to combine the strengths of both brands to better compete with their major rival. While acquiring Reebok may have given Adidas access to some of Reebok's technologies, the primary motivation was driven by market competition and brand positioning.

With Reebok's strong presence in North America and its established customer base, Adidas could expand its market share and leverage Reebok's existing connections in basketball and women's sports, areas where Adidas sought improvement. This strategic move falls under corporate strategy, specifically addressing the competitive dynamics within the athletic footwear and apparel industry.

answered
User Diogo Rosa
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