VILLA COLLEGE Faculty of Computing and Business Management

BS401 ESSENTIALS OF BUSINESS

Name: Abdulla Sajid Student ID Number: S11422856

Tutor Name: Mohamed Thoriq / Fathimath Mohamed

SEPTEMBER 2011 TRIMESTER

CONTENT
No C D Name Executive Summary The Industry Analysis E F G H Company Analysis Problems Recommendation Reference Page 3 Page 6 Page 6 Page 7 Page 6 Page 6 Page 6 Page 7 From Page 1 Page 2 To Page 1 Page 3

Executive Summary
The clothes and footwear manufacturing industry is one of the most competitive industries around the world. Suppliers powers and access to shelf space.

Industry Details

The company I have selected is working in sports clothing and footwear manufacturing industry. In this industry the companies compete to give out the best products and make a high profit. This is a very competitive industry where many companies compete. This is because the competition is very high that there should be very innovative products to stay alive at the industry. The industry is a vast industry and with so many competitors. The innovation rate is very low. There are some new innovations lately. The customers are not sure what the best product is. The industry requires so much advertising to sell their products. The companies need to work for the local and fulfill their responsibility to social work for their promotions. So to research more about the industry we should know specific things about the industry. So the customer of this industry is mainly the sport athletes and the teens. The professional athletes sometime are being sponsored by the different companys of this particular industry. The people of the age 15 to 40 mainly consume the products of this industry. The companies often sponsor the teams and the athletes because the people who support them would buy the products of their favorite athletes. This is to market the companys products. The sports clothing and footwear manufacturing industry is a very vast industry which is very popular all over the world. The industry is a very professional industry. The industry got many companies to compete. So the competition leads to have professional products on the market. The fiercest rivals of this industry are Puma, Adidas, Nike and Reebok. These companies try very hard to be the first of all. The competition is so mean that the companies cant be on the top for so many days. The products of this industry are related to the sports and teenagers. The products here are some shoes and costumes used at the sports. Some of the companies make some sport instruments. The companies always try to make the better product than the other companies. The products are done to the best way it is to be used at the works. The products are made for different weathers and different timings. The products are made from the best material they get. The products are being fitted to the work they have done for making the products. They are sometimes expensive but the products are so perfect that they deserve the price. The industry is so popular because of the professional products.

The Porters five forces Analysis is very much different because of the leading companies in this industry. First of all the threats of new entrants is very low. The entrance barrier strip is
high in that the capital requirements are high due to up-front advertising and research and development. Economies of scale in production will be difficult to reach due to the difficulties of piercing the market which is dominated by the large five companies. It will be impossible to make a differentiation in products in the industry because of the trends of the competitors. The bargaining power of consumers is low. The purchases of the buyers are not focused in huge volumes and

the products that the buyer purchases are not valuated. Furthermore, the industry determines what is "hot". The bargaining power of suppliers is high since it is dominated by relatively few companies. The product is unique, and the switching costs are high. It is also possible for the suppliers to come forward into the industry's business and become a rival to the industry. The threat of substitute products is low. The industry is upgrading the products frequently to cope with the "hottest" fashion. Rivalry among existing competitors is extremely high. Competitors are numerous and are roughly equal in size and in power. Many of the product lines lack differentiation. The product life cycles are extremely short. Each one of the major players is identified with a certain marketing approach. (n.a, n.d) The apparel industry was once a political hot potato for the UK and other major manufacturing countries due to the number of jobs that the sector used to be capable of supporting. A closer analysis shows that certain elements of the economy have supported the GDP growth, biased towards service industries, retailing and the financial sector and some sunrise industries. Dress codes have reflected social change since the Industrial revolution. However the way that people dress is integral to how they regard themselves and is entirely dictated by the clothing and footwear industry. Allied to the boom in sportswear and the general demand for clothing and footwear for an active leisure lifestyle have been technological advances.

The sports clothing and footwear industry is one of the most popular industries going on now. It is a very professional industry with so many achievements. The products have been the best of all. The competition of the industry is very high and the market is very good. The best part is that the customers are very happy about the products and day by day the industry gets some achievement. Company Analysis

Reebok's United Kingdom-based ancestor company was founded for one of the best reasons possible: athletes wanted to run faster. So, in the 1890s, Joseph William Foster made some of the first known running shoes with spikes in them. By 1895, he was in business making shoes by hand for top runners; and before long his fledgling company, J.W. Foster and Sons, developed an international clientele of distinguished athletes. It is now one of the best companys in this industry. It had got high profits and supports. Reeboks vision is to dedicate to provide each and every athlete from professional athletes to recreational runners to kids on the playground with the opportunity, the products, and the inspiration to achieve what they are capable of. We all have the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought unreachable. At Reebok, we see the world a little differently and throughout our history have made our mark when weve had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brands unlimited creative 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. (n.a, n.d) The strength of the Reebok Company is their financial position. Reeboks financial growth is unstoppable. Secondly their brand image stands s for quality the latest technology and prestige. Reeboks top management is highly marketing oriented and most of the key personnel come from a marketing background. Weakness of the Reebok Company is that the competition is very high that it is difficult to differentiate the products from other companies. The financial strength of the company makes it possible for Reebok to continue to ensure market leadership with effective research and development strategies. It is very important in this industry t make sure that you are on top-of-the-line in all products. The harsh competition from the main competitors in the industry is significant. To keep-up with the competition's penetrating efforts will cost a lot of money and put a lot of pressure on marketing and research and development. Also, the short product life cycles play an important role in the

return on investment in a particular product line. Furthermore, weakening markets may be a serious threat to Reebok. The best product sold from Reebok at the year 2011 is the sneaker. It is the product named as Kamikaze. It is sold many areas of the world. It is very much advertised and the company is trying to develop the product to use at different weathers. It had got the biggest market from all the products of Reebok. The dog product is the caps Reebok produces. It had not been so popular to all over the world. If it is produced more it could bring a loss to the company. The kamikaze shoe is an existing product at the market and the company is trying to develop the product to make the product be the boom. It had to be developed because the competitors are developing products and if the product is not developed it may have no popularity. The cap of the company is to drop and the product and brings out a new product to be competitive on the market. The four Ps are the Products, Price, Promotion and Place. The products offered by the company are very professional and the best they could be. The products are very popular to the people. The products are made by the best materials they could get from suppliers. The prices of the products are made by doing many researches. They do get the competitors pricing strategy and looks the amount spent for doing the product and gives the price the least they can. The promotion at the Reebok Company is very great policy. They sponsor some popular athletes so the people will buy the product their favorite athletes uses. They also promote by media and billboards. The places means the places the products are available. The products of the company are available all around the world. They distribute the product to all the franchises and sell their product. Reebok offers free returns for all products excluding Your Reebok. You may return your purchase within 30 days from receipt for a full refund, excluding shipping and handling charges. If the return falls outside of this period, or the item is worn, damaged, or not in its original packaging, Reebok cannot guarantee that the product refund request will be honored. This is a system and structure used by the company internally. Commitment to Corporate Responsibility is an important legacy and hallmark of the Reebok brand. Our history of innovation and conscientiousness guides us when creating policies, programs and partnerships. Grounded in our brand values, we believe that we have the

opportunity to achieve our full potential as a corporate citizen while striving to meet the expectations of our employees, stakeholders and consumers. Standing up for human rights is a Reebok hallmark as much a part of their corporate culture and identity as their products. They believe that they all have a responsibility to Understand human resource, to expose injustice, and to support efforts that ensure dignity and rights for all human beings. The Business practices they have developed and implemented around the world and their history are a reflection of our commitment. Grants provided by the Reebok Human Rights Foundation help support human rights initiatives around the globe. IT of the Reebok is very much managed. The supplies to the franchises are managed and the suppliers supply s also managed very carefully. The share holders amount of shares and amount for them are managed. The yearly profits and money spent are also managed carefully. At the year 2010s end the share of the company was 209,216,186. The amount of share holders was increasing day by day for the Reebok Company. The share was Registered-nopar-value share type. They have been very popular for their shares now. Problems and issues The problem of the company s that the best quality s not available to all areas of the world. In Asia it is difficult to find the best products which are available at the European countries. The Asian also want good products. Recommendation Please try to provide all the countries with the best products. We also would like to have a franchise shop at the Middle Asia.

REFERENCE
NO AUTHOR, NO DATE, http://www.reocities.com/TimesSquare/1848/reebok.html retrieved at 17th October 2011. NO AUTHOR, NO DATE, http://corporate.reebok.com/en/about_reebok/default.asp

retrieved at 17th October 2011.