What is the business-level strategy (competitive strategy) New Balance Athletic Shoe

Inc. following to compete in the sports shoe market?

The New balance is more focus on Product and Design rather than Marketing unlike their bigger
rivals.

- Multiple Width Shoes for same size to ensure better Fitting

-Focus on Performance and not on Fashion

- Continuous spend on R&D Innovation (Absorb- EX and ZIP cushioning Technologies)

- Focus on operations and efficiency - New NB2E Initiative

- Make in America Policy – Hybrid Manufacturing for faster supply to retailers

- Enough Inventory to support associates instead of loading the retailers with high inventory

- Giving Direct Access to retailers for ordering and see the inventory status through new Automation
Process

- No Endorse Policy

- Having Independent Agents with Entrepreneur mindsets rather than having too many people on
payroll

How well has functional level strategies (Operations, HR, sourcing etc.) been aligned to business-
level strategy? Explain.

The operations, HR and Sourcing strategies are aligned with the Current Business Level strategies.

- The new NB2E for more operational efficiency and lean manufacturing.
- The New sales Automation process for convenient ordering and faster supply to retailers
- Pair by Pair flow instead of Batch Production for faster supply
- Stringent Selection process (Focus on team players and sports lovers)
- Shadow by senior buddy (6-8) weeks
- Empowering employees through training, continuous improvement and leadership
- Hybrid Sourcing helps to lower the cost and faster the production
- Smaller orders and proper communication to suppliers helps in reducing inventory cost and
smaller supply cycle (as mentioned a reduction on 3 weeks i.e. from 12 weeks to 9 weeks)

Can you identify characteristics of structure and processes in New Balance Shoe that helps it to
achieve its strategy based on 'manufacturing' with the help of NB2E?

NB2E will help NBAS in many ways as it is aligned with the strategy NBAS is heading for.

- NBAS’s main USP is multiple widths and fittings which means they have Many SKUs for the
same size. NB2E helps them to realign with pair by pair flow manufacturing for faster
finishing goods inventory
- NBA’s is aiming for 24 hours supply from the time of request and NB2E processes will help
them to identify the for which customer they are manufacturing and in which container it
should go right from beginning of manufacturing like cutting of shoes
 - NB2E process will also help in reduction of manufacturing time which in turn reduced the
supply time to suppliers and also help suppliers to reduce their inventory cost through
smaller orders. This is one of the main characteristics of NBAS which keeps them alive and
competitive.

Will the strategies and their implementation at New Balance help to compete after the merger of
Adidas-Reebok? How?

We believe that Current Strategies, new quality initiatives and their implementation will be helping
NBAS to compete with their competitors.

NBAS has been successful so far in differentiating themselves from the competitors on Quality,
Relations with customers and faster supplies and these characteristics will keep them helping in
competing in new scenario of competition.

Multiple widths for comfort fit, on a selective target customer base, reducing cost with Independent
sales force, No middleman and direct supply to retailers through new Automation process, Brand
Image of high quality and innovative firm helps them making, building their Loyal customer base
which will help them to compete in the industry.