Nike Versus Adidas
Robin Castillo, Sirrea Hayes, Elizabeth Nichols, Ofe Walker
OL555
Lamprini Pantazi
December 19, 2009
Nike Versus Adidas 2
MISSION/VISION/VALUES
HISTORY
Bill Bowerman and Phil Knight first met at the University of Oregon. The two persuaded
the Japanese manufacturer of Tiger shoes to allow them to become a distributor in the United
States in 1964. With a handshake and a $500 financial commitment, the two held down full-time
jobs while starting their business, Blue Ribbon Sports Tiger Shoes. Jeff Johnson was hired to
manage the company almost immediately. In 1970, Bowerman used a waffle iron to create a
tread that changed shoes forever. In 1972, Carolyn Davidson created the legendary swoosh and
Nike was born. Steve Prefontaine, a long distance runner, became their first official
spokesperson and ambassador of the company. Through Pre, Nike began offering free athletic
shoes to runners using a new marketing effort by getting the shoes directly to those who use
them. The ‘80s were a time of growth for the company as well as its first stock sale. Michael
Jordan sported the Nike Air shoe and Bo Jackson endorsed the first cross-trainer. By 1989, Nike
was the industry leader and still holds that position today. In 2002, the company’s marketing
strategy moved away from big-name athletes to an integrated “Secret Tournament” which built
excitement for the sport of soccer. This sport-specific focus continues today.
Adi Dassler started making shoes in 1920 in Germany. By the mid ‘30s, Dassler was
making shoes for eleven different sports with 30 styles available. In 1949, the company was
officially registered as Adidas, but the first breakthrough occurred in 1954 when Adidas shoes
were worn by the German soccer team which won the Soccer World Cup. “Adi Dassler was the
first entrepreneur to use sports promotion in order to make the public aware of his innovations”
(Adidas home page) and counted famous athletes such as Jesse Owens and Muhammad Ali as
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family friends. In the ‘60s, the company branched out into athletic balls and clothing using the
still-recognizable three-stripe design. During the 1970s and 1980s, Adidas transitioned through
several leadership changes but still focused on serving the needs of sports teams including
soccer, basketball, track and field, and tennis. During the 1984 Summer Olympics, 89 percent of
the teams wore Adidas brand shoes. In the 1990s, Adidas began competing in the equipment
industry and popularity extended beyond sports to mainstream uses by popular stars like
Madonna. By 2000, Adidas moved toward a 1:1 product customization where each customer was
able to design shoes to his or her own specifications and celebrated the acquisition of competitor
Reebok. Corporate sponsorship of Olympic sports, athletes, and teams continue to this day.
RECENT HISTORY
In the last five years, Nike has truly become an international company when sales outside
the U.S. were higher in 2003. Nike continued to focus on innovative technology with the
development of Air Max 360, Nike+, and AIR JORDAN XX3 footwear. By 2008, the company
successfully reduced the weight of shoes by 18 percent by introducing Flywire and Lunarlite
technology and developed a website offering customers the opportunity to fully customize all
products from sports apparel to shoes. Capitalizing on Lance Armstrong’s popularity and success
in overcoming cancer, the Livestrong campaign has raised millions of dollars and has
jumpstarted an interest in giving back to the community and world. The Nike Foundation is
focused on gender equality and the elimination of poverty. Today, Nike employs over 30,000 in
160 countries.
In 2004, Adidas launched an advertising campaign called “Impossible is Nothing” which
capitalized on past and present athletes’ popularity and success. The company announced an
official partnership with the 2008 Beijing Olympics which helped solidify the Asian market. In
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London, Adidas (through its connection with Reebok) formed an official 11-year global strategic
partnership with the NBA, WNBA, and the development league. Additionally, the company is
the official outfitter of the NFL, Germany’s Football Association, and Russia’s Football Union.
Deemed the largest UK investment Adidas has ever made, the company formed a partnership
with the London 2012 Olympic and Paralympic games to be the Official Sportswear Partner. As
recently as early 2009, Adidas partnered with Cirque du Soleil to develop women’s fitness
equipment. Today, Adidas is a global corporation based in Germany employing nearly 39,000
people worldwide.
INTERNAL ANALYSIS
COMPETITIVE ADVANTAGE
EXTERNAL ANALYSIS
CUSTOMERS & COMPETITORS
INDUSTRY ANALYSIS
FINANCIAL RATIOS
ACQUISITIONS/DIVESTITURES
Nike Brand includes subsidiaries Cole Haan, Converse, Hurley International, NIKE Golf,
and Umbro. Beginning in 1988, Nike purchased Cole Haan, an American luxury shoe company
for both men and women. Branching out into logo headwear, Nike purchased Sports Specialties
Corporation in 1993 which later became Nike Team Sports, Inc., the first division of the
company. The year 1995 marked the purchase of Canstar Sports, Inc. (the name changed to
Bauer in 1998) giving Nike a foothold into the hockey arena. Nike joined with golf phenomenon
Tiger Woods who endorsed Nike Golf apparel and footwear in 1996. The company followed
with the production of golf balls in 1998 and golf clubs in 2002. Also in 2002, Nike branched out
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to acquire Hurley International LLC, a manufacturer of snowboards, surfboards, and
skateboards. Converse, Inc. was the next purchase for Nike in 2003 and in 2004 Nike acquired
and then in 2007 sold Starter Brands. Finally, in 2008, Umbro Ltd. was purchased to create a
stronger bond in the international soccer arena.
Adidas Group is comprised of three: Adidas, Reebok, and TaylorMade-adidas golf.
STRATEGY/STRATEGIC CHANGES
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