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Reebok & Adidas
Transcript of Reebok & Adidas
Merging of Adidas & Reebok
Value Chain Analysis
Market research involving segments which they have not traditionally focused on due to the possible change in traditional family structures
Focus on customer experience. Customizing products according to customer’s feedback.
Adjusting age segment group to include older age group. Because older people are more health conscious and more able to afford higher rates
Components of Business Model
Porter's Five Forces Analysis
Business Model Evolution
Founded in 1895
First athletic shoe for women
Reebok USA ltd was formed in 1979
CTO introduced technological advancements to compete
Strong sales growth from 2002 - 2004
#2 in US - #4 in Europe
Adidas officially took over Reebok in 2006
Creative marketing-driven culture
Founded in 1926
World leader in soccer shoes
Showed constant growth
Marketing strategies not up to the task
#2 behind Nike worldwide #4 in the US
Culture of control, engineering and production
Comparison with Nike
Before 1990, Reebok minimum amount of
implemented, while Nike conducting some business through
around 1992 Reebok invested a lot in technological programs, while Nike upgraded to ERP system causing some complications
In 1995 change in management for Reebok did the trick with creation of AFS module by SAP
around the starts of 21st century Reebok were using efficient programs for managing there business, while Nike also moved to AFS software
Causes for merging :
Issues with Integration :
What went wrong in merging ?
Global economy likely to decelerate in 2005
Mixed outlook for sporting good sector
New products as important growth driver in 2005
Industry nature - own retail the need of the hour
Misperception among retail partners about the future of Reebok's brand strategy
Questions about German - American corporate culture
Underestimation of competition from Nike
Licenses, events and teams
Geographies and product lines
Brand imaging to Reebok as premium shoe
Research and development
Distribution center and back operation
Employee care and retention
to become world class leader in sport wear
with technology, better manufacturing, delicate production process and considering customers needs creating unique trendy products
provide footwear and apparel for professional athletes to premium fashioners'
sports lifestyle consumers, athletes
Committed to creation of at least one major innovation per year, and a continued headway in design
Brand conscious and image conscious people buys every new product as a style statement
exposure at major event like olympics 2008, FIFA WC2006 and with representing sportsmen, and teams
Provide Footwear & apparel for professional athletes to premium fashioners'
Production in industrial goods, for example: Safety shoe, head covers, or even protective clothing from radiations
Expand their business in emerging markets in Asia & Latin America:
India, Pakistan, (Cricket) Brazil, Chile (Soccer)
Revert cheap production from Asian:
Causing low quality, and spreading bad image overall
Energy enhancing sneakers:
increasing jump height & rebound speed thus Increasing runners energy.
Why business integration is important for Reebok ?
Cost saving and efficiency : by integrating the organization's system, it will streamline processes, making a real difference to your bottom line.
strategic insight : when everything is integrated, it's easier for company senior people to understand how their organization is operating and ensure processes are as streamlined as possible.
improved cash flow : integrated system eliminate delay meaning company can bill their customer faster.
customer satisfaction : by making everything that company know about their customers available at very touch point across in their business, they can meet their needs throughout the customer life-cycle.
Diagram what information is collected and how it is used in the new system at Ree-bok. Specify the format of the data collected at each point.
Private Design Architecture
Design for voice, videos and data
Electronic image library develop to product shots to be distributed to every country
Reduce the lead time
Increasing materials replacement
Software Package "Passport"
Product codes and shoe sizes
Small distribution and subsidiaries access to the system
Electronic Data Interchange
Enables goods to be tracked through shopping companies, customs and warehouses
Linked to customer databases
Store the catalogs with mail links through cc: Mail
When problems arise with the network, or the software, how can they be identified and resolved? How do we set up an IS group to solve problems and help users?
Check product inventories and raw material stocks when retailers and distributors placed orders
Reebok installed Radnet Inc. Webshare groupware system to maintain its website. the system has tools for email, discussion groups and bulletin boards
Through the information system, the company use new media approaches such as Youtube and second life to market their products
The company learned about the problem almost immediately. Based on the immediate feedback, they told customers to treat their product before sell it
So, the company use web-based system to handle business-to-business transaction with supplier
Several customers also complained about their prts
How has Reebok been hampered by its information system?
Legal status of online transaction
Integrity & security of information
Privacy & confidentially of information
Intellectial property rights
Write a report to management that describes the primary cause of the problems, a detailed plan to solve them, and show how the plan solves the problems and describe any other benefits it will provide.
By standardizing processes of using information technology implement in Reebok company like SAP, AFS, BW, Retail Inventory Management if haaving advance information technologies and processes to meet the changing requirement to re-engineering, improve its communication, supply chain system, use electronic data interchange and improving organizational data and process. this will result in increased operational efficienc and lower cost accross their power generating products. this will shift company to meet the world requirement for sport shoes industry.
Only shoes were produced by Adidas
Adidas increase the range to other sportswear and accessories such as training jackets,t-shirts and perfume.
Adidas focuses mainly on efficiency of its products
The first sportsman ever sponsored by Adidas is Jesse Owen.
Adidas ability to merge the trendy and the technical is being put to use.
Adidas has sponsored a lot of sportsmen such as David Beckham and sporting events such as Euro 2012
Form 5 mega process