Adidas Salomon Case 22. Question 2.
Adidas Salomon had diversified into a mix of sporting googs business, most of which branded apparel among the product line. The apparel and footwear business of adidas, Salomon and taylormade are clearly related business.
Adidas branded footwear, cycling apparel and winter sports apparel. They would be sold in the same retail outlets as running or basketball attire. There does seem to be a good strategic fit in distribution and sales marketing between golf equipment and golf apparel, ski equipment and ski apparel, and bicycle components and bicycle apparel. Few other strategic fit opportunities exist especially in purchasing, product development, or production between Adidasâ€™ apparel and footwear business and its sports equipment business (skis, golf clubs, bicycles wheels). In addition, there seems to be little opportunity to capture synergistic benefits between these sports hardware ...view middle of the document...
Whatâ€™s more we can notice value chain match ups in Product R&D: both companies put a huge emphasis on innovation and design development as means of gaining market share. And all of the brands have introduced a number of product innovations that revolutionized their industry. In supply chain activities, all of them are producing footwear and apparel products. In sales and marketing, all Adidas, Salomon, TaylorMade are using sporting events and contracts with athletes in order to promote their products. In distribution, all of them are using retail outlets implanted in Europe and America and are all targeting and putting huge amounts to enter the Asian market. Finally in general administration all of their product offer tend to be oriented in the prestigeâ€™s market and are sold at premium prices.
Finally, regarding the opportunities for skills transfer cost sharing, or brand sharing. We can notice thereâ€™s an opportunity for transfer of expertise and know how as Salomon is strong where Adidas is weak (manufacturing sport equipment) and Adidas is strong where Salomon is weak (Footwear and apparel design). There are also opportunities for collaboration across businesses (Both companies have a division committed to innovation in product and collaborated to develop the Ground Control System manufacturing) and also opportunities of exploiting their brand names (All the brand are very well known in their own market and have good market shares. When they develop products together the products are marketed under the two brand names and are sold in the two retail channels). In addition to Adidas and Salomon brand sharing, brand sharing opportunities exist as well between all Salomon winter sports soft goods and hardware products, as well as Mavic wheels and cycle attire, and Taylormade golf equipment and golf apparel and footwear. Regarding the cost sharing, the benefits from Adidas footwear and apparel product can be reoriented to develop the less profit making activities of the business.
Case Study Team 6
Student Name Student Number Signature
Colm Mulrooney A00095706
Lyzlinn Murgia A00131148
Tara B Rabbitte A00102944
Ciara Shanley A00108284
Valdas Stonys A00131100