Adidas: Underestimating Competitors

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Adidas: Underestimating Competitors

1. Adidas didn’t anticipate the recreational boom of the aerobic in the 70’s when Americans were increasingly concerned with physical fitness after have been read some books about it.

2. Adidas was born by two German’s brothers, Rudolf and Adolf (or “Adi”) Dassler. Adi was the innovator and Rudolf the marketer who the his brother’s creations. After a failing out between them in 1949, Rudolf took one-half the equipment and left his brother. He created the brand Puma and Adi continue with his creations named Adidas.

3. To sell better their brand, first, they ask some professional athletes to use their shoes with new technologies (like stud) for competition and also to walk with their products in the normal life. It was the beginning of the sponsorship.

4. Technical innovation plays an important role in the success of Adidas because it helps it to be very famous with consumers. For example, the innovation of Adidas helped the German team to won the World Cup in Hungary and everybody who watched it or heard about it knows it was thanks to Adidas.

5. Montreal games were an unbelievable publicity for the brand because players with Adidas shoes won more than 80% of the medals. After that, they sold $1 billion worldwide! 1972, the fist Olympic game on TV.

6. Adidas diversify its product line by putting their logos on athletes who are sponsored by the brand to permit an immediate identification for the normal customer. After that, the customer can find in shops diversify product with the brand name on it, like his favorite player.

7. Being in an “Easy-Entry industry” was a problem for Adidas because they didn’t be on guard by numbers of competitors who go on in the market without big investment in R&D but just in marketing. They stay on sport, on Europe market, and didn’t anticipate fashion and Fitness boom

8. For their athletes, Adidas contract them to wear their product in the normal...
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