The case provides a background to analyze the sportswear industry in China on the basis of Michael Porter’s five force model and the company Adidas by its competitive strategies. The demographic profile and segmentation of the Chinese consumers has been described in the case. The decision of Adidas to acquire Reebok will catapult its market share but will still fall short of the market share held by Nike. The challenges lying ahead of Adidas will be to first achieve synergies resulting by the acquisition and then set its best foot forward to directly confront the market leader and maintain the lead over the domestic favorite.
Pedagogical Objectives: * To analyse the sportswear industry in China on the basis of Michael Porter’s five force model * To discuss the competitive strategies adopted by various marketers in China * To discuss the opportunities and challenges for Adidas in China.
Keywords : Athletic sportswear industry; Adidas, Nike; Li-Ning; Reebok; China; Sport scenario in China; Competitive Strategies Case Study; Franchising; Olympic games; consumer behavior; consumer segmentation; brands; celebrity