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 .

while Nike Inc.5 billion pairs of athletic shoes. Reebok international Ltd. American consumers spent $300 billion on 7. with 12 factories closing since 1995. By 1996 the number of establishments had dropped to about 52. and Adidas became $ 3. and company profits in mind. Keeping in mind fair labor practices in all our suppliers’ factories.92 $ 2.“continue to bring inspiration to present and future athletes.12 $ $ 3. Over a span of more than 25 years.5 Billion companies.641 M $ 135.08M 1999 $ • • Net sales decrease(1997 to 1999)= Net Income decrease (1997 to 1999)= Industry Overview • • • Athletic footwear manufactures captured nearly one-third of the total footwear market in the early 1970s.04 $743M $124. while maintaining the company's standard of quality for its products. Our mission has always been to provide a competitive edge by developing the most technological products. became the first ever $ 9.5 Billion company. with the shareholders interests. We also believe our employees are one of our most important assets.” Proposed Mission Statement “To continue to offer quality products with increasing growth in the industry and expanding globally.897 M 11.223 M 23. while maintaining a competitive advantage. • . 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 1998 $ 3.

5 million pairs.5 million pairs . Vietnam's share jumped 91. Bussiness structure – – – – US Europe. Brazil's share increased 2.5 million.6 million to $106.S.26 billion pairs . the value of industry shipments declined from $ 219.9 percent to 23. The US markets continue to be dominated by imports from countries with low-cost labor.• • • • • • China's imports increase by 6 percent to 1. From 1997 to 2001. Middle East and Africa (EMEA) Asia Pacific america Operating Segments: – – – Footwear Apparel Equipment Manufacturing: Nationality of Contract Suppliers Competitive Profile Matrix (CPM) .3 percent to 83. shoe manufacturing plants declined by 775 between 1967 and 2001. U.

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 +3 Coordinate X-Axis Advantage Competitive -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: – – – – • 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 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 . www.y www. David. 10th Ed.businessweek.• Research in international market to find out what are the new trends related with women and kids products (Long-term) References • • • • • • • • • Reebok Annual Reports Reebok Quarterly Reports Annual ranking of America's largest corporations Strategic Management Concepts and Cases. Fred R.

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