How has Adidas evolved since it was
Timeline of Adidas
• Fouded 1920 by Adi Dassler – wanted to design shoes for athletes in
soccer, T&F, & tennis.
• The Dassler brothers (Rudi & Adi) made their first major innovation in
athletic shoes, integrating studs & spikes in track & field shoes.
• Innovators in Marketing – gave away shoes to German athletes
competing in Olympic games. By 1936 most athletes would compete
1928-1936 only in Dassler shoes.
• Bitter family feud, company dissolved. Rudi established Puma. With
his departure Adi renamed company Adidas & registered the
1948-1949 trademark 3rd strip to Adidas shoes.
• Adi expanded spikes concept in track shoes to soccer shoes. Partial
credit was given to the soccer shoes for Germany’s World Cup
1954 Championship that year.
Timeline of Adidas
• Adidas is the clear favorite among athletes – 75% of T&F
athletes wear them in Olympics. ’63 started producing soccer
balls, ’67 athletic apparel
• Adidas became leader in consumer jogging shoes in the US. T-
shirts and apparel bearing the 3 stripes became popular
1970’s among teens.
• Adi Dassler dies, Adidas remains worldwide leader in athletic
footwear but they are losing market share fast to Nike in US.
Market share loss continues through the 80’s and mid 90’s.
• Through cost cutting, new model launches, and endorsement
contracts with popular athletes Adidas increased sales by 75%
1994 over prior year in US. Becoming 3rd largest athletic footware
company in US – trailing only Nike and Reebok.
Timeline of Adidas
• Acquisition of Salomon SA – diversified beyond shoes &
apperal to ski, golf, bicycle, & winter sports.
• Stock price takes a hit possibly due to Salomon acquisition.
Adidas mgt divested all of Salomon’s winter sports & bicycle
• Acquistion of Reebok, included Rockport footware, Greg
2006 Norman apparel, & CCM hockey equipment.
What enabled Adidas to be the
Market Leader in the past?
Track and Field Soccer Results
Analysis – Adidas was an • 1925:studs • 1954 – • Over 700
early entrant into athletic and spikes screw in patents
shoe industry. They • Arch spikes • Strong
developed many of the support • 1963- Began reputation
• 1949 – producing among top
features still present in soccer balls athletes
shoes today. rubber • 1967 – • 1970 –
cleats athletic leading
• 1952 - apparel brand in
Created a strong brand consumer
based on high quality, spikes jogging
innovative products that shoes
top athletes choose to use
in training and
•Developed strong following with
top track and field athletes. Gave shoes to
athletes in 1928
•Applied this same model years Olympics
later with soccer shoes and
75% of track and
•Successful because adidas was field athletes
wearing adidas in
creating innovative, high quality 1960 Olympics
•Product innovation enabled 78% of athletes
marketing innovation. 2 stripe (and
later 3 stripe)
•Different than Nike –
marketing is what set them
apart from the start.
Has Adidas positioned itself well
in developing markets?
Adidas is a global player
•43% of sales from Europe,
which is slowest growth
•Encouraging that #1 in
European market, Russia
expected to be most
profitable market in
Europe by 2010
•2006 acquisition of Reebok
not enough to overcome Nike
in North America
•Growing number of sales in
Asia market, fueled by adidas
success in China.
•Strong demand and
Net Sales in Emerging Markets
Analysis – strong growth trend in sales in two very attractive emerging
markets. Growth may be result of Adidas brand strength in soccer, world’s
most popular sport.
Regional Footwear/Apparel Markets
Region Size Market Adidas Sales Adidas Sales Adidas
Growth Growth Position
North $42.5 billion 3% $2.9 billion 5% #2 behind
Europe N/A 2% (20% $4.3 billion 8%, mainly #1
Eastern in Russia
Asia 3.2 billion 13% (South $2.2 billion 17% #1
people and Central)
Latin N/A N/A $657 million 39% #2 behind
Analysis – Adidas is strong in several developing markets (Eastern Europe,
China) but its focus and acquisitions have been geared towards overtaking
Nike in the large, but slow growth North America market.
Has the Acquisitions helped position
Adidas against its competitors?
Salomon Acquisition: Was it
Product Line Before Product Line After
Athletic Shoes Athletic Shoes
Athletic Apparel Athletic Apparel
Winter Sports Apparel
•Analysis:Paid 1.5bn to diversify product line. Surpassed Reebok world’s
2nd largest sporting goods company, however…
Adidas’s Stock Price
•Stock price fell soon after acquisition in 1998, Salomon divested
except for Taylor-Made Golf line. Adidas overpaid for acquisition.
Adidas after Salomon was divested
Product Line Product Line Product Line
Before After After Divestiture
Athletic Shoes Athletic Shoes Athletic Shoes
Athletic Apparel Athletic Apparel Athletic Apparel
Ski Equipment Golf Clubs*
•Only added Golf Clubs to product line