Reebok Swot Analysis

NIKE Inc. has been the worldwide leader of athletic shoe sales for many years now. The company’s successful brand image combined competition and enablement for the competitive, athletic user. Nike has to modify their brand to a focus of excitement and freedom and not just competitiveness. By collecting and studying an assortment of material we could be able to understand where NIKE is currently placed in the athletic shoe industry compared to their competition, and how they will be able to adjust their brand focus so it can be more effective in the future. These adjustments can help NIKE reach the more casual group of urban runners and ultimately increase the sales forecasts, while still controlling a percentage of the market for athletic shoes.

Sportsman Shoes has been a leader in the shoe industry for more than thirty years. Sportsman manufactures and sells athletic shoes for all types of sports. The company has pursued a low-cost strategy in order to sustain their success. They sell a limited number of shoe designs and have held costs low through manufacturing efficiency and standardized operations. However, the past five years have been a struggle at Sportsman. The shoe market has seen a rise in the availability of low-cost imported shoes that has threatened Sportsman’s competitive position. As a result, company executives have decided it is time for a strategy shift.

- to be able to understand the market potential of LFL shoes in partnership of Reebok

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

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.

The industry that Lululemen operates in is the Women`s Apparel industry which is a mature, large and fragmented market that has highly sensitive to the economic conditions and trends.

Lululemon operates in an era in which the world has become much more intertwined due to 2.4 billion having access to the internet. People are more connected to not only others but also the world around them. This has to lead to a natural hunger for connectivity in our daily lives. Lululemon is piloting in-store technology and RFID programming (Radio Frequency Identification Device) to give customers better access to the item they are looking for in real-time, including online inventories while they shop.“The system has increased the company's inventory accuracy to 98 percent”, says Jonathan Aitken, Lululemon's RFID program director. “The company's ability to get access to RFID-based inventory data and choose to sell goods online or in store

1. Evidence from case: Other companies selling similar athletic wear such as, Adidas, Reebok, nike Etc.

Currently, Nike stand as a leading figure in producing high quality sports and fitness equipment and apparels. Bearing just a simple start of selling Japanese imported shoes from a station wagon has transformed

As one of the leading companies in the athletic shoe industry, Debel has experienced success in many areas. Debel has thus far successfully differentiated themselves from other competitors. Many players in the industry seemingly began with a strategy of differentiation but suffered from tunnel vision and focused mainly on the quality of shoes being produced. To combat other differentiation focused companies in the market place, Debel has invested in not only producing high quality shoes, but also a wide range of model for consumers to choose from (488), two celebrity endorsements (Oprah Letterman and LaBron Game), and traditional marketing and retailer support. The financial outcomes of Debel’s decisions will be discussed in the following text.

Nike supports recycling efforts with its Reuse-A-Shoe program. Started in 1993, it collects old shoes, processes them into sports surfaces, basketball courts, playgrounds and running tracks, and donates them to needy communities (Ferrell, et al,. 1998).

One of Nike’s main opportunities is product development. Developing their product range makes them more competitive and because products tend to go out of fashion quickly, Nike must introduce new products relatively fast because consumer demand the newest and latest products. Increase in internet shopping will no doubt reduce the cost and improve prices making them even more competitive.

Under Armour shoes are in the monopolistic competitive market. It has some differentiation from other competitors for example design, materials used and comfort of carrying the bag. The price also varies for each different model of bags. Advertising to promote and differentiate the product from other firm’s product is also the key factor of success. We have decided to set the price of our new under armour smart bag at SGD799. We have calculated SGD350 as the total cost and SGD449 as the profit of each bag. There are a few pricing strategies that we are going to use for our new product.

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