Final answer:
Adidas uses its ownership of diverse brands such as Reebok, Adidas, and Taylor-made to engage in C. market diversification, which allows them to target different segments and cater to various consumer needs through product differentiation.
Step-by-step explanation:
The Adidas Group employs a strategy where it owns multiple brands, such as Reebok, Adidas, and Taylor-made. When a company uses different brands to target different market segments or offer varied products, it is engaging in a strategy known as market diversification. This strategy is distinct from others like market penetration, which involves increasing sales of existing products within the current market, or brand extension, where an existing brand name is used to enter a different product class or segment. In this case, Adidas owning different brands allows them to diversify their market presence and cater to different consumer preferences and needs, which is a form of product differentiation. Product differentiation is any action that firms take to make consumers think their products are different from their competitors', which can include a variety of styles, flavors, locations, and characteristics.