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Seldom, if ever, has global competition been so glamorous, or so passionately beheld. At soccer's World Cup in France this summer, hundreds of thousands of spectators and a cumulative TV audience of 37 billion cheered and wept as 32 nations battled for supremacy in the world's most popular sport.
No less intense was the off-field rivalry between the world's leading athletic equipment companies. With their dueling events, giveaways, and advertising - and through the on-field heroics of the teams and stars they equip - the companies' ongoing multinational marketing wars also reached a fever pitch.
For Adidas CEO Robert Louis-Dreyfus, a Frenchman and a soccer fan extraordinaire, the outcome of the Cup competition could not have been sweeter. With his company having invested $100 million in Cup-related marketing and promotional activities, it was especially thrilling for him when Adidas-sponsored France soundly thrashed Nike-sponsored Brazil 3-0 in the championship game. "There's an adrenaline rush when an Adidas-equipped team beats one that's wearing the other guy's product," Louis-Dreyfus acknowledges. "And why not? We want to win."
Louis-Dreyfus is particularly proud of a new soccer shoe Adidas developed especially for the World Cup. "Our mission is to be the number-one maker of athletic equipment in the world," he says, "and this is truly an athletic shoe, unlike most of the sneakers you see on the street that will never be used in competition."
Like a coach who specializes in turning losing teams into winners, Louis-Dreyfus has an enviable record of reshaping underperforming companies into formidable competitors. A scion of one of France's most prominent business families, he rejuvenated IMS International, a struggling U.S. pharmaceutical market research company, and built it into a powerhouse. In 1989, he moved on to advertising giant Saatchi & Saatchi and performed similar magic before taking the helm of Germany-based Adidas in 1993. Under Louis-Dreyfus, one of Business Week's "Top 25 Managers" of 1997, Adidas's net income surged 27 percent last year, a headlong charge that has industry-leader Nike looking over its shoulder.
"I'm a gambler, and I like the challenges that turnarounds present," explains the tall, curly-haired Louis-Dreyfus. "And with a turnaround, you're only expected to restore a company to good condition, and then move on. That's fine - I think CEOs should not stay too long at any company."
Louis-Dreyfus believes that successful global enterprises must be decentralized. While Adidas's corporate headquarters maintains authority over the company's mission, vision, and overall brand image, it entrusts tactical, local decisions to its in-country executives. For country-specific products (such as baseball shoes in the United States), Adidas prefers using in-country designers rather than design teams working out of corporate headquarters.
"It's a European style of management," notes Louis-Dreyfus, "a bit more open than the American model that features directives from headquarters. Furthermore, at Adidas, an in-country head is a native of that country, whereas American companies often have Americans running their international divisions."
Louis-Dreyfus devotes about half of his time to new product development and ensuring that advertising and promotion are properly representing the Adidas "brand." The rest of his time is spent traveling to country units. In an age of videoconferencing, Louis-Dreyfus still prefers in-person visits. "I enjoy spending a day with colleagues, having dinner, and meeting their families," he says. "The personal contact is very rewarding for me."
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