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Adidas Campaign May Hurt Reebok

While Adidas' new "It takes 5IVE" basketball campaign pushes the value of teamwork over the achievements of the individual, its strategy for growing its basketball business could hurt its sister brand, Reebok International.

In its biggest effort ever, Adidas wants to capture a bigger share of the basketball market dominated by Nike. And it is bringing some new weapons to the table--a licensed merchandise deal with the NBA from Reebok and new fashion sneakers designed for each of the 30 NBA teams.

But Reebok, and not Nike, could be the biggest loser. Reebok's business is lagging in sales and order backlogs, and it is losing market share in basketball. The strategy puzzles some industry watchers: "It's difficult enough to compete against everyone else, let alone having to compete against your brother," says Matt Powell, contributing editor for Sports Executive Weekly, an industry publication.

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