Case Study : New Balance Shoes Company

2533 WordsOct 30, 201411 Pages
1 Introduction New Balance shoes company was founded in 1906 by 33 year old British with aim to make customised shoes focusing people who face feet problems in finding right sizes. After 28 years, He partnered with his leading salesman named Arthur Hall. Arthur Hall sold the business to his daughter and son-in-law in 1956. New Balance business expanded with word of mouth. New Balance is among top five producers of Athletic footwear in the World. New Balance started focusing on New Balance Executional Excellence. The aim of this Lean tool is to enhance the quality and efficiency of the New Balance Operational Processes. In contrast to their competitors New Balance produces twenty five percent of their production in United States…show more content…
On the other hand, all other players in the industry shared more or less 8-12% market. Nike spent the highest amount on the marketing campaigns with Adidas come on 2nd in advertising expenditure and Reebok was the 3rd largest company in marketing of their products and most of the amount was spent in United States market. Market was categorised into different retail channels to target the customers according to their own requirements. Companies used big box chains and sports shoe stores to reach the buyers. Companies also started their own flagship stores with more recent models. 3 What are Operational Objectives These are objectives which companies set to achieve in short-term. Operational objectives are important for overall operations planning. These short-term objectives help companies in achieving their long-term objectives (WiseGEEK). 3.1 Quality and Dependability New Balance prioritise to make performance oriented products opposed to just fashion products. NB gives attention towards designing section as well. This strategy of New Balance Shoes make it unique and dependable in every aspect from its competitor companies in the United States athletic footwear market. New Balance rivals e.g. NIKE, Adidas and Reebok focus more on making fashion and design of shoes which demonstrates, they work more on fashion oriented products more than performance products. New Balance performance shoes make the company dependable
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