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INTERNATIONAL BUSINESS MANAGEMENT

PROJECT ON REEBOK

SUBMITTED BY:SUBMITTED TO
CHANDAN YADAV (317) VIKAS KUMAR (356) VED PRAKASH YADAV (355)

Proff. - Amit Kumar

Background & History of Reebok Shoes


Reebok began in 1895 in a part of the UK as Bolton and the founders were Joe and Jeff foster natives of UK. The companys original name was Mercury sports but was renamed Reebok in 1958. Reebok is a British producer of athletic footwear, apparel, and accessories. In January 2006, Reebok became a subsidiary of Adidas after the company acquired Reebok International Limited for $8 billion. The companys headquarters are in Boston, Massachusetts and the UK head office is located in Lancaster.

Company with their growth story


1982 marked the year that the first athletic shoe designed with women in mind was introduced to the market by Reebok. The shoe was called the Freestyle, and it was designed for the latest exercise craze, aerobic dance. Reebok's sales had already surpassed the $1.5 million point when the Freestyle caused the company to explode. In 1985 Reebok went public and then in 1986 they bought The Rockport Company, a leader in the development of comfortable casual and dress shoes. Reebok invaded the international market in the late 1980s and is currently sold in over 170 countries.

Partnering
Reebok shifted from a focusing solely on exercise to a company focused on exercise as well as sports in 1992, when they created new clothing and shoes designed for all different types of sports. The Greg Norman Collection was also birthed in 1992 when the golfer partnered with Reebok. Greg Norman was just the beginning though, as Reebok continued to partner with top athletes in the late 1990s.

Recently
In 2000 Reebok partnered up with the NFL. 2002 marked the year when Reebok designed clothing and shoes inspired by street fashion, these items were launched as the Reebok collection. In 2003 Jay-Z and Reebok partnered to create the S. Carter Collection by Reebok. In 2004 Reebok acquired The Hockey Company, snagging an agreement that gives them the exclusive rights to make all on-ice jerseys for all the NHL teams. The marketing campaign, "I Am What I Am," in 2005, which encouraged youth to appreciate their individuality, and featured many celebrities. Reebok was acquired by Adidas in 2006, and Paul Fireman, the CEO, left the company, allowing for Paul Harrington to become President and CEO of Reebok. The "Your Move" marketing campaign was

launched in 2008, and set Reebok apart from other sporting goods manufacturers as a company that celebrates individuality.

Drivers & Differentiation

(Distinguish with any one competitor)


Different drivers of globalization and they can basically be separated into five different groups. 1:-Technological drivers Technological shaped and set the foundation for modern globalization. Innovations new technology like online shopping & advertising which all play very important roll in selling of Reebok products. 2:-Cost drivers.. The cost factor like psychological pricing which is adopted by them like Rs 899.And also discount factors like flat discount of 25% on purchase of Rs1500+. And also a kind of discount like

Reebok Coupon Codes

Customers

rate Reebok positively for its comfortable, lightweight footwear and custommade. Products. 3:-Competitive drivers. With the industry experiencing such competition with Nike, Adidas, and the product requiring intensive labor, firms are facing extreme pressure to increase their profit margins through their sourcing practices.

Difference between Reebok and Nike


Reebok and Nike are two of the most recognizable sports equipment brands around, and you would be hard pressed to find anyone in the world who hasn't heard of one or both of these brands.

Reebok and Nike Fit, Support, Durability.


The winner in terms of ruggedness and durability Tend to fit a lot better Offers a snug fit that still provides adequate protection Nike Tends to fall apart fairly quickly under heavy use

Has a reputation for producing some of the most balanced athletic shoes on the market.

FOCUS ON VARIOUS ROUTES THEY ADOPTED FOR GLOBALIZATION

Reebok and Vulcabras Form Joint Venture in Brazil & Argentina

The adidas Group and Vulcabras S.A. today announced that they have agreed to form a joint venture company to conduct the distribution of Reebok footwear, apparel and accessories in Brazil and Paraguay. The joint venture company will commence operations on April 1, 2008. Financial results of the joint venture are planned to be fully consolidated within the adidas Group as of April 1, 2008. The joint venture agreement expires at the end of 2015.

Franchise Opportunities Category:-Retail


Area Req : - 1200-2000 (1 Sq Mtr = 10.76 Sq Ft.) No. of Fanchise Outlets : 700. Investment : Rs. 50 lac - Rs 1cr.

Clothing and footwear of the Reebok India franchise


This clothing and footwear business makes clothing in all sizes ranging from small to XL and above, wherein the women's size range from small to XL and the mens sizes range from small to XXL in certain styles. The footwear franchise provides a range of footwear such as for adventure, basketball, and casual and cross training.

Adidas-Reebok Merger: A Good Fit


Their merger could put the combined outfit on the fast track. Then again, Nike may still prove to agile to catch

It makes too much sense not to happen. A combination of Reebok International (RBK ) and AdidasSalomon AG (ADDYY ), announced Aug. 3 by the two companies, is one of those mergers with which it's difficult to find fault.

INTERNATIONAL PRODUCT LIFE CYCLE OF REEBOK


AS usual reebok is also use the three stage of iplc

1:- Introduction stage:-.. Reebok has been providing athletes with quality goods
since 1895, when it began with running shoes. Since that time Reebok has changed owners, expanded their brand and made some key partnerships, all while still providing athletes with quality products.

In that stage they firstly start their production and selling only in their parent country us. And after that . In 1985 Reebok went public and then in 1986 they bought The Rockport Company, a leader in the development of comfortable casual and dress shoes. Reebok invaded the international market in the late 1980s and is currently sold in over 170 countries.

2:- Maturity stage:-. When they created new clothing and shoes designed for all
different types of sports. The Greg Norman Collection was also birthed in 1992 when the golfer partnered with Reebok. Greg Norman was just the beginning though, as Reebok continued to partner with top athletes in the late 1990s. Reebok are start giving franchise , joint venture & merging with other company.

3:- Standardizing stage:-.For standardize their product they start adding some new innovation in reebok production like reezig,.,.,.

ReeZig reduces a lot of the wear and tear on your legs which sounds like it could helpful . In this stage reebok start opening their manufacturing units in new country (host)

Reebok Economic/ Political/ Technological Issues in IB


This will consider environmental influences on the organization, both in the past and with future strategic plans.

Political
Political unrest in the production countries Terrorism in the home country

Economic
Slow down in the economy Reduction in consumer confidence Contract manufacturing

Socio-cultural
Brand conscious consumers Change in buying habits in younger people Corporate social responsibility

Technological
Speed of change of product Design Ability Speed of News reporting

Environmental
Re use a shoe Sustainability philosophy Climate impact

COMPANY'S FDI HISTORY AND NEW TRENDS/ PROJECTS OVERSEAS


In a season of economic reforms, the government has yet again brought about a major policy change; now in the retail sector. It has allowed for 100% Foreign Direct Investment (FDI) in single brand retail, and allowed for 51% FDI in multi-brand retail. Before, only 51% FDI in single brand retail had been allowed meaning the individual companies like Reebok, Levis were allowed to open up their stores in India. However, no FDI in multi-brand retail was allowed, except in the cash and carry segment.

NEW TRENDS/ PROJECTS OVERSEAS


Reebok is basically internally strong organization. It develop a more detailed plan grow sales. Reebok Suffering foreign markets. Find market that is not in economic decline. Strong goals and plan to grow the sales & global reputation. By changing advertising agencies frequently, Reebok has dug themselves in a marketing hole.

PROJECTS OVERSEAS
Customization of product like reezig. Focus on finding the most promising customers (kids and woman) and introduce more products or improve current ones to satisfy potential increase in demand. Improve product diversification with companys newest technologies so resulting increased earning could be reinvested in to R&D plans. Keep expanding in to current and future foreign markets by being aggressive and the worldwide leader of the footwear industry. Come up with new strategy to expand towards other sports or population segments.

EMPHASIS ON CROSS-CULTURAL ISSUES IN MANAGING


Culture is part of the external impact that influence the customer. That is culture represents effect that are put on the consumer by other individuals.

OPERATIONS

The Reebok brands, which have started as a local brand are now well accepted as a world brand. These brand are well attached to the culture of the country. The problems comes when to spread and extend the same culture to other countries. The purchasing action assessment will be essential to know for marketers.

The Reebok brand are communicated to the consumers according to in the

culture of the country. How can be a consumer across the culture different from each other. Can there be and extension of consumer behavior along with a product or services of one country to another country.

The marketers introduce the new product and services to the market and they try to exploit the exposure gained by the new culture.

The most important situation is the consumer presents their attitude about the foreign products and how much consumers are influenced with their won culture. The various dimension of culture which affect the buying decision of company The age group and culture will affect each other. culture. The country and society is also have influencing situation towards the Subculture also place and important role in deciding the culture dimension of customer.

PRODUCT-LINES
Strategic management is a set of managerial decision and action that determines the long run performance of a firm.
Reebok made some adjustments in its marketing strategy in India, Reebok was life style products. very cautious while entering the Indian market. Reebok positioned them self as

Subhinder Singh, managing director, Reebok India, creating a motivating and

relevant brand position in India would increase the sell volume. However, the

parent country had issued a mandated that its Indian subsidiary should stick to time stay focused on maintaining its leadership position in India.
R

the companys vision of instilling fitness consciousness among people, at the same

Product Extension
Create a new product that builds off your established brand image. For example, Reebok is known for athletic footwear. Reebok extended this image and created Reebok Fitness Water to diversify its product line and build off the success of its shoe line.

Product Modifications
Product modifications such as color or different features can help diversify your product offers. For example, Heinz expanded its ketchup offerings to include colored ketchup in purple and green. These products targeted consumers with children to capture additional market share. Consider a product modification strategy if you have budgetary constraints, or if slight modifications could lead to expanded market share or reinvigorate your existing product's image.

BENEFITS/MOTIVES BEHIND INTERNATIONAL BUSINESS

Following are some main benefits & motive behind international business.

BENEFITS / MOTIVES..............
As we know that reebok is internationally excepted product. When reebok product is introduce in united state in 1895. After some time REEBOK start doing their business in other nation also with help of joint venture with Vulcabras & adidas due to demand factor which they received from other nation. following.

The main Benefits / Motives of reebok to do their business in deferent country is

Enhances the domestic competitiveness Takes advantage of international trade technology Increase sales and profits Extend sales potential of the existing products Maintain cost competitiveness in your domestic market Enhance potential for expansion of your business Gains a global market share Reduce dependence on existing markets Stabilize seasonal market fluctuations

CONCLUSION OF OVERALL COMPANY PERFORMANCE AND FUTURE INITIATIVES IN INTERNATIONAL BUSINESS

Reebok is dedicated to providing each and every athletes from professional athletes to recreational runners to kids on the playground. As a brand, reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach height s they may have thought un-reachable.

Continue to bring inspiration to present athletes, while maintaining the companys standard of quality for its product
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 share holders interests, and company profits in mind. To increase the responsibility towards the environment by evaluating the impact of day to day operation and attempts to change operation that have a negative impact.