Adidas acquired Reebok primarily to pursue an unrelated diversification strategy. overcome its competitive disadvantage against Nike. overcome its principal-agent problems. get access to the superior technology of Reebok.

Respuesta :

Answer:

Overcome its competitive disadvantage against Nike

Explanation:

A competitive disadvantage occurs when a business faces adverse market scenario due to one of it's competitor gaining a competitive edge over it, which drives down the sales of such a business.

If one company gains a competitive advantage, for others in the same industry, it would be a competitive disadvantage.

A competitive disadvantage leads to an under performance by a business owing to a competitor's efficient performance.

Disadvantage typically arises on account of the competitor's better know how,scale of operations, location of the plant, etc.

In the given case, Adidas acquisition of another footwear brand i.e Reebok was more driven out of overcoming its competitive disadvantage against Nike. The market comprised of few big sportswear brands with Reebok being one of those. By acquiring Reebok, Adidas reduced competition and at the same time became better equipped to compete against Nike.