Products

Brands

• Reebok International

• DMX2000

• 3D Ultralite

• Ralph Lauren Apparel line

• Atheletic footwear

• Rock Port

• RBK CCM Hockey (World’s largest)

• Greg Norman Apparel

• Ralph Lauren Brand

• The Hockey Company

• Avia

• Onfield Apparel

Proposed Vision Statement

“continue to bring inspiration to present and future athletes, while maintaining
the
company's standard of quality for its products.”

Proposed Mission Statement

“To continue to offer quality products with increasing growth in the industry and
expanding globally. Our mission has always been to provide a competitive edge
by developing the most technological products. Keeping in mind fair labor
practices in all our suppliers’ factories, while maintaining a competitive
advantage, with the shareholders interests, and company profits in mind. We
also believe our employees are one of our most important assets. To increase
the responsibility towards the environment by evaluating the impact of day to
day operation and attempts to change operations that have a negative impact

) Economic Performance:
Sales by Regions (1997–1999

Net Sales** Net Income

1997 $ 3,641 M
$ 135.12

1998 $ 3,223 M
$ 23.92

1999 $ 2,897 M
$ 11.04

• Net sales decrease(1997 to 1999)= $743M

• Net Income decrease (1997 to 1999)= $124.08M

Industry Overview

• Athletic footwear manufactures captured nearly one-third of the

total footwear market in the early 1970s.

• Over a span of more than 25 years, American consumers spent

$300 billion on 7.5 billion pairs of athletic shoes.

• Reebok international Ltd. and Adidas became $ 3.5 Billion

companies, while Nike Inc. became the first ever $ 9.5 Billion
company.

• By 1996 the number of establishments had dropped to about 52,

with 12 factories closing since 1995.
 • China's imports increase by 6 percent to 1.26 billion pairs .

• Brazil's share increased 2.3 percent to 83.5 million pairs .

• Vietnam's share jumped 91.9 percent to 23.5 million pairs.

• The US markets continue to be dominated by imports from

countries with low-cost labor.

• From 1997 to 2001, the value of industry shipments declined from

$ 219.6 million to $106.5 million.

• U.S. shoe manufacturing plants declined by 775 between 1967

and 2001.

Bussiness structure

– US

– Europe, Middle East and Africa (EMEA)

– Asia Pacific

– america

Operating Segments:

– Footwear

– Apparel

– Equipment

Manufacturing:
Nationality of Contract Suppliers

Competitive Profile Matrix (CPM)

Grand Strategy Matrix

QUADRANT 2 (Proposed Strategies)

• Market development

• Market penetration

• Product Development

• Horizontal Integration

• Divestiture
SPACE Matrix

PACE Matrix

Y-ASxis

Financial Strength
+4

Environment Stability
-1==èY
Coordinate +3

X-Axis

Competitive
Advantage -5==èX Coordinate
-3

Industry Strength
+2

Conclusions

• weakness of Reebok is located in their top management

• Reebok changed advertising agencies eight times and they earned a
reputation as a difficult client

• Never listen the foot lockers

• Decisions

• Primary: Focus on finding the most promising customers (kids and

women) and introduce more products or improve current ones to satisfy
potential increase in demand

• Alternative:

• Keep expanding into current and future foreign markets by being

aggressive and the worldwide leader of the footwear industry

• Accelerate funding for numerous marketing campaigns in order to

get to specific markets or customer groups

• Focus on improving working conditions and human rights at

international manufacturer centers and at the same time increasing
their productivity

• Implement product diversification with company’s newest

technologies so resulting increased earnings could be reinvested
into R&D plans

Implementation

Actions:

• Women:

– Open specific stores specialized only for women

– Increase R&D expenses in women products

– Increase Marketing expenses by designing a specific

campaign for women using female endorsements

– Create a new logo for women market which would be

associated with fashion trends and introduce new products

• Kids:

– Increase R&D expenses in kids products

– Increase Marketing expenses by designing a specific

campaign for kids

– Introduce more soccer and basketball products targeting

potential youth market
• Research in international market to find out what are the new
trends related with women and kids products (Long-term)

References

• http://finance.y ahoo.com

• Reebok Annual Reports

• Reebok Quarterly Reports

• Annual ranking of America's largest corporations

• www.reebok.com

• www.bigcharts.com

• www.businessweek.com

• www.wikkipedia.org

• Strategic Management Concepts and Cases; Fred R. David, 10th

Ed.

www.lakahani.com

www.indianshoes.com