Reebok Essay

This article is about Reebok hoping to take advantage of the Mixed Martial Arts (MMA) star, Ronda Rousey 's domination in the Ultimate Fighting Championship (UFC) to revive its struggling business by securing a partnership with her. The main issues that will be analysed are concentrated marketing and brand positioning.

Companies like Under Armour, Nike and Adidas/Reebok have high threats of substitute´s products. These companies share the sport apparel industry and are vulnerable to competitive pressure from the actions of buyers whenever they view that their products can be substituted for others. The availability of substitutes invites the costumer to compare performance, features, and ease of use as well as price. Under Armour’s major competitors are Nike and Adidas/Reebok because they have a similar or competing product offerings. The top sport apparel brands offer similar products and that is why each one of them needs to keep a high standard and produce good quality products in order for customers to keep buying their product.

The reason I say reebok is in a unified position is because reebok is a company which focuses on fashion and sports. Unlike many other business entities the face evolution on a much faster pace and higher level. Literally something as simple as a professional athlete switching teams can impact reebok 's bottom line. Reebok faces this both as a business and a sports business entity sometime separately sometime simultaneously. Reebok just as any other business has to face things like competition, culture, demographics, technology, vision, marketing goals, objectives, and strategy but they have to do it twice as both as a business and a sports business entity. Their goal was to basically ensure they were using their tools in the best possible ways to stay ahead of the competition.

As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,

Adidas is one of the most famous manufacturers of top-quality sporting goods. It is the market leader in sporting good alongside with its competitive rival Nike. It also consists of Reebok Sportswear Company.They produce different types and variety of products to all age categories such as bags, shoes, shirts and more. The Adidas group, headquartered in Herzogenaurach (Germany) started in 18th August 1920 by Adolf Dassler. Adidas witnessed its first international success in 1954 and that is when the German have won the soccer world championship. Adidas has 169 branches worldwide and total revenue of 11.9 M Euros. Adidas is well known of sponsoring many sports events such as world cup or Olympics in addition to the use of its products

In 1964, a company named “Blue Ribbon Sports” was founded by a track coach, Bill Bowerman, and one of his runners, Phil Knight. Bowerman wanted a lighter and more durable shoe for his runners. So one day, Bowerman created a waffle-like pattern on the sole of trainers to help athletes grip running tracks using his wife’s waffle iron. For a while, these new shoes were sold and distributed from Phil Knight’s car trunk. In 1971 In 1971, the company “Blue Ribbon Sports” was now named “Nike”. Nike was named by an employee and means “the goddess of victory”. The logo was created by Carolyn Davidson, also in 1971. Nike Swoosh introduced their first shoe in 1972. Throughout the 70s and early 80s, Nike revenue steadily arose going from $28.7 million in 1973 to $287 million in 1983. A special year in history for the company, in 1984, Nike was able to offer, convince, and sign rising basketball star Michael Jordan.

In 1996, Kevin Plank started it all off in Washington DC in his grandmother’s basement. Until finally in 1998, Under Armour moved to a new headquarters and warehouse in Baltimore. Plank began to conquer a share of the sports market by producing high quality sport shirts, which could adapt to sweat, climate, and other hush conditions. After achieving great results in two years, Under Armour introduced footwear and many other sports product goods in order to remain conquering market share from giants as Nike and Adidas. Through a focus based on product performance and a word of mouth endorsement, Under Armour was able to show substantial year to year revenues growth in the global apparel market.

However, there also have been other executives who have helped the organization to still leading the market. For many years, although Nike has had a lot of competitors, they have managed to control the market share in an excellent way. Under Armour for example, is a direct competitor of Nike and even though is newer company than Nike, they have shown to be a strong competitor. Also, Under Armour has been able to make presence in some of the biggest sports name, their brand has grown and their style clothing is distinct and unique. Apart from Under Armour, Reebok is another brand that is a direct competitor of Nike. Many brands actually struggle to be on top for Nike, but because of the efforts, talent and undeniable innovation, Nike will be ahead of them for years to

Under Armour is a company started by Kevin Plank in 1996 in a basement. The company went public in 2006 raising a total of $153 million as equity. From a small private company to a multi-billion generating organisation, Under Armour had to overcome numerous challenges including financial difficulties and sales growth. The founder started with premium quality sports clothes and today the company specialises in diverse sportswear and apparel. Through the development of new hi-tech gears, Under Armour, Inc. has been able to penetrate and establish itself in the sports apparel market. It is constantly coming up with new products and adopting innovative strategies to meet the growing needs of its customers as well as to stay ahead of its rivals. A brand which was hardly known a decade ago is today worn by elite athletes in virtually every sports – for instance, Michael Phelps, the Rio Olympic gold medallist, promotes the brand.

Stands firm for international expansion: UA’s growth strategy outside North America includes partnerships, local sports sponsorship's, and country-specific e-commerce websites of which Under Amour now has 26 total.

After all, it’s parent company, Adidas, is often considered as Nike’s major competitor (Grewal, Levy, Lichti, & Persaud, 2015). The important matter is the decline of its brand value, which directly relates to brand loyalty. The decline demonstrates the fact that Reebok is losing its market share and most importantly, customers. This negatively impacts all of its products, including the Reebok Crossfit Nano 7 and the Kids Essential Full-zip Fleece Hoodie. In other words, consumers are unpleased with its

The Cambridge Strategy Group has various qualities that will empower it to positively contend in this business. Its shortcomings are addressable and will be enhanced about whether.

Adidas is a German international company that designs and produces sportswear and footwear. Over the years Adidas has created a group called the Adidas Group it consists of Reebok, TaylorMade-Adidas company, Ashworth, and Rockport.

On a like-for-like basis, Reebok segment sales declined by 5% in 2007. At TaylorMade-Adidas Golf, currency-neutral revenues increased 1%, negatively impacted by the divestiture of the Greg Norman Collection wholesale business. On a like-for-like basis, TaylorMade-Adidas Golf sales increased 9%. Sales in the HQ/Consolidation segment decreased by 60% on a currency-neutral basis, mainly due to the expiration of the Salomon footwear sourcing cooperation agreement. Currency translation effects negatively impacted sales in all segments in euro terms. Adidas sales increased 7% to € 7.113 billion in 2007 from € 6.626 billion in 2006. Sales at Reebok decreased 6% to € 2.333 billion versus € 2.473 billion in the prior year. TaylorMade-Adidas Golf sales declined 6% to € 804 million in 2007 from € 856 million in 2006. HQ/Consolidation sales decreased 62% to € 48 million from € 129 million in the prior year. (Adidas-group factsheet 2007).The merger and acquisition has gone beyond expectation. Although there were reports of declining sales of Reebok in the North America in the early years of its acquisition but this was due to the currency-neutral sales in the Reebok which is now associated to the turnover. But in later years, beginning 2010 despite the economic turmoil in US and Europe the Adidas Group together with other subsidiary products continues to boost its sales.Such increases are

Adidas is the second largest sportswear and apparels manufacturer (Dogiamis & Vijayashanker, 2009). By far, Adidas holds a market share of 22% (Dogiamis & Vijayashanker, 2009). Adidas had also registered the infamous ‘3 stripes’ as its trademark (Berntson, Jarnemo & Philipson, 2006). The founders of Adidas, Adolf and Rudolf Dassler had the vision of providing athletes with the best suited pair of shoes for their respective sports (Dogiamis & Vijayashanker, 2009). In efforts of achieving that, Adidas is had used the strategy of collaborating with important athletes to gain their insights on the products offered (Berntson, Jarnemo & Philipson, 2006). This contributes to the fact that Adidas had earned