Case Questions
Problem 1. What is adidas's corporate strategy? Was there a common strategic approach used in managing the company's lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring?
Problem 2. What is your evaluation of adidas' lineup of businesses in 2008? What does a 9-cell industry attractiveness/business strength matrix displaying adidas' business units look like?
Problem 3. Does adidas' business lineup exhibit good strategic fit? What value-chain matchups exist? What opportunities for skills transfer, cost sharing, or brand sharing are evident? Prior to its divestiture, what kind of strategic fits existed between adidas' core business and its Salomon business unit?
Problem 4. Has adidas' business lineup exhibited good resource fit between 1998 and 2007? What have been the financial characteristics of its major business segments during that time period? Which businesses might have been considered cash hogs and cash cows?
Problem 5. Based on your analysis of adidas businesses, did the restructuring undertaken in 2005 and 2006 make sense? Does it appear the acquisition of Reebok International will produce higher returns for shareholders? What strategic actions should adidas' top management initiate to improve the company's financial and market performance now that restructuring is complete?
Notes: Reference book is Crafting and Executing Strategy: The Quest for Competitive Advantage, 17th Edition, by Arthur A. Thompson, A.J Strickland III, John E. Gamble. ISBN 978-0-07-353042-0
Case 18, page C-332 through C-345. Adidas in 2008.