SBD/22/Finance

Print All
  • ADIDAS "OUTMANEUVERED" NIKE WITH PURCHASE OF SALOMON

              In the wake of adidas' $1.3B purchase of Salomon,
         adidas and Nike "are squaring off to see which will dominate
         the sporting-goods market in the next century," according to
         Woodruff & Trinephi of BUSINESS WEEK.  adidas CEO Robert
         Louis-Dreyfus "has outmaneuvered Nike in the rush to
         diversify from shoes and apparel -- a crucial strategy that
         may push Nike to look for more acquisitions. ... Salomon's
         product line gives Adidas a new edge.  The company makes
         finely engineered products that command premium prices and
         deliver higher margins than T-shirts or sneakers.  They also
         attract attention from upscale consumers."  Woodruff &
         Trinephi add that Salomon's bindings "are the industry
         standard for both downhill and cross-country skis," and that
         one-fourth of adidas-Salomon's sales "will come from such
         high-margin products" (BUSINESS WEEK, 9/29 issue). 
    
    

    Print | Tags: Finance, Nike, Washington Nationals
Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug