Reebok

Reebok International
International Ltd…ltd…
Introduction:
 A subsidiary of German sportswear giant Adidas, is
a producer of athletic footwear, apparel, and
accessories.
 Started in 1890 with the name of J.W.Fooster and
sons.
 In 1960, two of the founder's grandsons Joe and
Jeff Foster renamed the company Reebok in
England.
 In 1979, Paul Fireman, a US sporting goods
distributor, saw a pair of Reeboks at an
international trade show and negotiated to sell
them in North America.
Logos Of Reebok:
Supplier information, according to the
Reebok website as of May 2007:

 Footwear factories in 14 countries;

most are based in Asia.
 China (Accounting for 51% of
production).
 Indonesia (21%), Vietnam (17%),
Thailand (7%).
 Over 75,000 workers.
Apparel…
 Factories in 45 countries.
 Most (52%) of Reebok's apparel sold
in the United States is produced in
Asia, with the rest coming from
countries in the Caribbean, North
America, Africa and the Middle East.
Athletic Shoe Market Shares (in
2000):
M ark et S hare

45.00%
40.00%
35.00%
30.00%
25.00%
M ark et S hare
20.00%
15.00%
10.00%
5.00%
0.00%
Nik e A didas Reebok New B alanc e
Celebrate Individuality in Sport
and Life:
 Reebok understands that people are,
above all, unique. Reebok’s
positioning reflects this; celebrating
the distinct qualities that make
people who they are - their unique
points of view, their individual style
and their remarkable talents and
accomplishments.
To Empower Global Youth to Fulfill
their Potential:
 Commitment to Corporate Responsibility is
an important legacy and hallmark of the
Reebok brand. For two decades, Human
Rights, through the Reebok Human Rights
program, were the primary focus of this
effort. Reebok has expanded on what had
been built and created a Global Corporate
Citizenship platform with a purpose for the
brand that will help underprivileged,
underserved youth around the world fulfill
their potential and live healthy, active lives.
IFE (Internal Factor Evaluation) Matrix:
Weaknesses:
EFE (External Factor Evaluation) Matrix:
CPM (Competitive Profile Matrix):
Porter’s Five Forces:
BCG Matrix:
TOWS:
SPACE:
SPACE Matrix; Strategies:
 X-Axis= CA+IS = -5+2 = -3
 Y-Axis= FS+ES = 4-1 = +3
 It lies in second quadrant so
the strategies should be;
Market Development, Product
Development, Market
Penetration, Related
diversification.
IE (Internal-External) Matrix:

It falls in the 4th quadrant so the strategy is;

Grow and Build (Market Penetration, Market
Development, Product Development). For
1st, 2nd and 4th.
Recommendations:
 They should improve their relations with
their largest distributors.
 The firm’s ROI has decreased and that need
to manage their new assets better.
 They should collect their accounts
receivable sooner to increase the profits.
 They should divest their unprofitable
divisions that don’t follow their marketing
strategies like health and fitness clubs.
QSPM:
 List down key external factors
(opportunities & threats).
 Then list down key internal factors
(strengths & weaknesses).
 Give them weights according to their
treatment and average score.
 Find the total.
Alternative Strategies:
 Keep expanding into current and foreign
markets by being aggressive and the world
wide leader of footwear industry.
 Focus on improving working conditions and
human rights at international manufactures
centers and at the same time improve the
productivity.
 Implement product diversification with
company’s newest technologies so resulting
increased earnings could be reinvested to
the R&D.
Why this strategy:
 U.S women prefer fashion not footwear,
they prefer clothing; we must create a new
shopping style.
 U.S kids influence by design and
innovation, not only comforts or sports.
 Reebok need to consolidate US sales
compare to foreign sales and international
competitors.
 Difficult to expand towards other sports and
population segments.
Any Question??? OR
Comments???