Adidas is a German multinational best known as a designer and manufacturer of sportswear and related accessories. It was founded in 1924 in the Bavarian town of Herzogenaurach, Germany, and did not take on the Adidas name until 1949. The new company, known today as Adidas AG, is the holding company for the Adidas Group and the sole owner of Adidas. Some of the company’s largest shareholders include: Groupe Bruxelles Lambert SA (7.6%), Nassef Sawiris (3.3%), and Norges Bank Investment Management (2.8%).
| Aspect | Description | Analysis | Examples |
|---|---|---|---|
| Products and Services | Adidas offers a wide range of products and services, including athletic footwear, apparel, accessories, and sporting equipment for various sports and activities. The company provides products for sports performance, lifestyle, and fashion. Adidas also engages in brand collaborations and marketing campaigns to promote its products. | Adidas’s core products are athletic footwear and apparel, catering to sports performance, lifestyle, and fashion needs. The brand’s collaborations and marketing campaigns help build brand loyalty and attract consumers. The versatility of its offerings appeals to a broad customer base. | Athletic footwear, apparel, accessories, sporting equipment, sports performance, lifestyle, fashion, brand collaborations, marketing campaigns, versatile product range, broad customer base. |
| Revenue Streams | Adidas generates revenue primarily through the sale of its products. This includes revenue from the sale of athletic footwear, apparel, accessories, and sporting equipment through company-owned stores, third-party retailers, and e-commerce channels. The company also earns from brand collaborations and licensing agreements. | The primary revenue stream for Adidas comes from the sale of its products through various channels. Brand collaborations and licensing agreements provide additional sources of income. The company’s global reach and brand recognition contribute to strong sales revenue. | Revenue from product sales, athletic footwear, apparel, accessories, sporting equipment, company-owned stores, third-party retailers, e-commerce, brand collaborations, licensing agreements, diversified revenue sources. |
| Customer Segments | Adidas serves a diverse customer base, including athletes, sports enthusiasts, fitness enthusiasts, individuals seeking athletic fashion and lifestyle products, and consumers interested in sportswear and branded merchandise. The brand caters to both professional athletes and everyday consumers. | Adidas’s customer segments encompass a broad range of individuals, from athletes and sports enthusiasts to those looking for athletic fashion and lifestyle products. The company’s versatile product range addresses various customer needs and preferences. | Athletes, sports enthusiasts, fitness enthusiasts, fashion-conscious individuals, lifestyle products, sportswear, branded merchandise, versatile product range, diverse customer segments. |
| Distribution Channels | Adidas distributes its products through various channels, including company-owned retail stores, third-party retailers, e-commerce websites, and exclusive brand collaborations. The brand’s products are available globally through a network of authorized sellers. | Distribution channels for Adidas comprise company-owned retail stores, third-party retailers, and e-commerce platforms. Collaborations with other brands and designers expand the reach and exclusivity of its products. The brand’s global presence ensures accessibility to a wide customer base. | Company-owned retail stores, third-party retailers, e-commerce platforms, brand collaborations, global accessibility, expanded reach, exclusivity. |
| Key Partnerships | Adidas forms partnerships with sports organizations, teams, and athletes for sponsorships and endorsements. The brand also collaborates with other companies and designers for exclusive product lines. Additionally, Adidas partners with retailers to distribute its products and leverage their customer base. | Partnerships with sports organizations and athletes enhance brand visibility and credibility. Collaborations with other companies and designers contribute to exclusive product offerings. Retail partnerships expand distribution channels and increase accessibility. | Sports organization and athlete sponsorships, endorsements, collaborations with companies and designers, retail partnerships, brand visibility, credibility, exclusive product offerings, expanded accessibility. |
| Key Resources | Key resources for Adidas include its product design and development teams, manufacturing facilities, supply chain management, marketing and branding efforts, distribution network, retail stores, and brand reputation. The brand’s innovative product design and global presence are crucial assets. | Adidas’s resources encompass its product design and development capabilities, manufacturing facilities, supply chain expertise, marketing and branding strategies, extensive distribution network, company-owned retail stores, and a well-established brand reputation. These resources enable the company to maintain its competitive position and appeal to consumers. | Product design and development teams, manufacturing facilities, supply chain expertise, marketing and branding strategies, distribution network, retail stores, brand reputation, competitive position, consumer appeal. |
| Cost Structure | Adidas incurs various costs related to its operations, including expenses for product manufacturing, marketing and advertising campaigns, employee salaries and benefits, research and development, retail store maintenance, and administrative overhead. Manufacturing and marketing costs are typically significant. | Costs associated with Adidas’s operations include manufacturing expenses for its products, marketing and advertising campaigns to promote its brand, employee salaries and benefits, research and development investments, retail store maintenance costs, and administrative overhead. Manufacturing and marketing represent substantial operational expenses. | Product manufacturing costs, marketing and advertising expenses, employee salaries and benefits, research and development investments, retail store maintenance costs, administrative overhead, substantial manufacturing and marketing expenses. |
| Competitive Advantage | Adidas’s competitive advantage stems from its reputation for innovative product design, brand recognition, and global reach. The brand’s focus on both sports performance and lifestyle fashion appeals to a wide audience. Collaborations with sports organizations and celebrities enhance its market presence. Adaptability to changing consumer preferences and fashion trends contributes to its competitiveness. | Adidas’s strengths include a reputation for innovative product design, strong brand recognition, global accessibility, versatile product offerings, collaborations with sports organizations and celebrities, and adaptability to changing trends. These factors position the brand as a prominent player in the sportswear and fashion industry. | Innovative product design, brand recognition, global reach, versatile product offerings, collaborations, adaptability, competitiveness in sportswear and fashion markets. |
Early years
The Adidas story starts with Adolf Dassler. Known as “Adi” to his friends, Dassler made sports shoes in his mother’s laundry and was soon joined in the business by his elder brother Rudolf.
The resultant company became known as Gebrüder Dassler Schuhfabrik, translated as the Dassler Brothers Shoe Factory.
Adi was involved in the development of spiked running shoes for athletics made from canvas and rubber that were an improvement over older models.
He convinced sprinter Jesse Owens to wear them at the 1936 Berlin Olympics, and when Owens won four gold medals, the Dassler name became synonymous with world sportsmen.
Before the outbreak of World War II, the Dassler brothers were already selling over 200,000 pairs of shoes each year.
Adidas is born
After the war in 1948, the Dassler brothers held different views on how the business should be run and decided to part ways.
Adolf founded Adidas from the first six letters in Adi Dassler, while Rudolf decided to found Ruda (later Puma) around the same time.
In the late 40s, 50s and 60s, Adidas and Puma became fierce and bitter rivals.
The Adidas logo
The first iteration of the Adidas 3-stripe logo was acquired from Finnish footwear brand Karhu Sports in 1952 for the equivalent of €1600 and two bottles of whiskey.
This was superseded by the more recognizable trefoil logo that was designed in time for the 1972 Munich Olympics.
The mountain logo was then introduced in 1991, followed by the neo-circle in 2002 and the word-mark in 2005.
Today, the company uses various iterations of its logo according to the product category. The trefoil design, for example, is used for lifestyle and casual wear, while the neo-circle tends to be used for lifestyle collaborations.
Who owns Adidas today?
After Horst Dassler (son of Adolf) passed away in 1987, French industrialist and investor Bernard Tapie purchased an 80% stake in Adidas worth around $290 million.
Unable to meet the interest on the loan he used to fund the purchase, Tapie mandated that French bank Crédit Lyonnais handle its sale.
In an unusual move, Crédit Lyonnais then converted the debt it took on into equity in Adidas.
The bank had tried to assist Tapie as a personal favor because he was Minister of Urban Affairs in France at the time.
But it was to no avail. Tapie went bankrupt in 1994 and Crédit Lyonnais sold Adidas to an assortment of investors for a profit.
The new company, known today as Adidas AG, is the holding company for the Adidas Group and the sole owner of Adidas. Some of the company’s largest shareholders include:
- Groupe Bruxelles Lambert SA (7.6%).
- Nassef Sawiris (3.3%), and
- Norges Bank Investment Management (2.8%).
Key takeaways
- Adidas is a German multinational best known as a designer and manufacturer of sportswear and related accessories. It was founded in 1924 in the Bavarian town of Herzogenaurach, Germany.
- Adidas was known as Gebrüder Dassler Schuhfabrik until 1948 when co-founders the Dassler brothers disagreed over the direction of the business and started their own companies. From this disagreement would emerge Adidas and Puma, with the two becoming bitter rivals over the next few decades.
- After Horst Dassler (son of Adolf) passed away in 1987, French industrialist and investor Bernard Tapie purchased a controlling stake in the company. However, he went bankrupt in 1994 and creditor Crédit Lyonnais sold Adidas to an assortment of investors for a profit.
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