In 1924, Rudolf and Adolf Dassler opened a factory by the name of Gebrüder Dassler Schuhfabrik aka Dassler Brothers Shoe Factory, or GeDa for short.

Adolf Dassler (Adi) was a handyman who liked designing and working on the shoes himself as well as developing the design. On the other hand, Rudolf Dassler was the salesman.

As time went by, GeDa became almost the only shoe factory in Germany, or at least the most successful thanks to the brothers' perfect combination.

The Breakup

24 years after starting GeDa, the brothers called off the partnership in 1948 with each of them starting their own company.

Adolf took his nickname (Ad) and the first part of his last name to make the company name (Adidas).

Rudolf had a similar idea and decided to combine the first part of his name with the last part of his parents' names and the last part of his last name. Thankfully, he decided against that and started a company called "Puma" instead.

The Split

Each of the pair started their own factory, kept a percentage of the workforce, and had control over a certain part of the country and more importantly, the world.

Two companies, run by two brothers, became the leading companies in the world when it comes to sportswear.

What Does That Have To Do With Nike?

The rivalry between Nike and Adidas is a famous one now. However, during those days, Nike wasn't even a thing. And before we get to this point in history we have started from a time when Nike wasn't more than merely an idea in the brain of a Japanese man.

Kihachiro Onitsuka

Halfway across the world from Germany, Japan was recovering from the aftermath of the Second World War in what is known as the Japanese Economic Miracle, a recovery stage that lasted 8 years (1946- 1954).

The allies, under the control of the USA, have taken control of Japan, dismantling the Japanese Empire and opening the country to the outside world.

Japan's Fascination With American Sports

Kihachiro Onitsuka saw the country's fascination with American sports and decided to start manufacturing sports shoes. However, he wasn't able to design a good one.

All of that changed when Onitsuka was having octopus soup, as he was inspired by the movement the octopus made to make basketball shoes. Taking into consideration how fluid the octopus movement is.

Onitsuka Tiger

That was the first line of shoes Onitsuka designed and created. It was wildly successful, especially among high school and college students who play basketball.

It later became the brand name for Onitsuka's shoes. Especially after he poked little holes into running to help runners avoid foot burns and infections. He did that when he was inspired in the shower while watching his feet wrinkle.

Onitsuka Tiger became a big company in Japan. It still operates today under the same. Onitsuka saw his idea become a household name with operators, a company board, and a successful business model. That's why he decided to break into other sports.

In The Early 1960s

Onitsuka Tiger was visited by an American in his early 20s named Philip Hampson Knight (Nicknamed Buck) to discuss business with the company. Before we talk about that meeting we have to take a detour into who that American is

Philip Hampson Knight (Buck)

Phil was an aspiring runner from Oregon. He was actually competing during his time in college while training under the legendary Bill Bowerman who led the U.S. team in the Olympics.

Unfortunately, Buck wasn't the best among his teammates so he gave up on his dream of running professionally. He received his bachelor's degree from Oregon university before getting a Master's in business from Stanford.

Buck Wanted More

While his dream of being a professional runner ended, he still had an interest in entering the sports world as that's where his passion is. Buck's master's paper was about how importing Japanese shoes could help end the domination German companies have in the U.S. sports scene. Namely, two companies, you probably guessed them already; Adidas and Puma.

The Meeting

Buck introduced himself as the CEO of an imaginary company called "Blue Ribbon". He talked about the golden opportunity awaiting Onitsuka Tiger in the United States through "his company", especially in the Tennis field as it was quite the big market in the U.S.A, potentially ending the German domination if it enters the market at a cheaper price.

Buck offered to represent the company in the United States and the Onitsuka Tiger liked the offer to start a partnership that kickstarted a series of events that ended with a company worth $116.25 billion as of 2019. But, more on that in part 2.