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4 Mistakes That Led To adidas' Downfall

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adidas was and will always be one of Nike's main competitors, but last year, Under Armour rose to become the second biggest sportswear company in the United States. With a decline in sales for the past three years and their shares falling nearly 40 percent in the last year, the German athletic brand is struggling to keep up. Yahoo Finance has laid out a few mistakes that led to their "downfall". The first reason is that executives in Europe have lost touch with American tastes. Christine Noh, owner of a New York-based streetwear chain said, "If your upper management is in Germany, and they don't know Flatbush from Harlem from Virginia, it's hard to have that information percolate back up to the top and have that action executed." Next up is their loss of endorsement deals to Nike. Not only did they lose out on Michael Jordan, but Nike has many more American athletes on their roster than adidas does. The third reason given is their slow product turnaround time. On average, they take around 18 months to get from design to shelf, which keeps them from being able to capitalize on emerging trends. The final reason is how much money they paid to acquire Reebok. To help revive struggling sales, they had to divert money away from their main brand. According to the Wall Street Journal, however, adidas is slowly making changes to their business model to improve sales. Sound off below on what you think. Is adidas what it used to be?