Key points:

1. The Davises had started a new initiative “New Balance Executional Excellence (NB2E)” which
focused on the increase the quality and efficiency of the company’s operational processes
through the application of lean manufacturing.
2. The US was the largest market for athletic shoes and apparels, accounting for roughly 50% of
the $32Bn spent globally each year.
3. The footwear market were expected to grow at 6.3% annually.
4. Nike maintained a lead with 43% of the total global market for athletic shoes and apparel.
5. Within US footwear market:
a. Nike: 36% share of market
b. Adidas, Reebok & New Balance: 8% - 12% share of market
6. The acquisition of Reebok by Adidas would create a firm that rivaled Nike in size and would
boost Adidas’s share to roughly 20% of the US footwear market.
7. The Adidas-Reebok transaction depicts Consolidation phase in athletic footwear industry.
8. Launched its New Balance Suspension System to shown the cutting edge R&D and its aim to
meet requirements of performance oriented runners.
9. The company maintained its multiple width commitment.
10. New Balance had Edge over competitors in terms of inventory and meeting needs in time.
11.