ERICA HUFFMAN M AY L E E DAUCHENBAUGH

VISION AND MISSION STATEMENTS

Vision Statement:

To enhance social and environmental performance in the company and the supply chain, thereby improving the lives of the people making our products.
Corporate Mission Statement:

The adidas Group strives to be the global leader in the sporting goods industry with sports brands built on a passion for sports and a sporting lifestyle

HISTORY
1992: Repositioning of Reebok away from fitness/fashion toward an emphasis on highend performance sneakers 2004: Reebok gained exclusive rights to make all onice jerseys for all the NHL teams

1958: Fosters Grandsons started company

1982: Debut of Aerobic Exercise Shoes

1997: Shoes featuring 3D Ultralite technology,

1980: Discovered by Paul Fireman at trade show and bought rights to sell in U.S.

1985: Introduced sports apparel and accessorie s

1996: Debuted Shaqnosis basketball shoe

2000: Reebok partnered with the NFL

2005: Acquired by Adidas

Stems from J.W. Foster and Sons : UK company developed in the 1920s Handmade running shoes for elite runners at the time

DECISION MAKERS
Herbert Haner CEO of Adidas

Adidas Executive Board

We took the role as outside consultants

SWOT ANALYSIS
Strengths
Partnered with NFL Well Known Endorsers Zig and Flex lines

Weaknesses
Decreasing market share in sports market No longer their own company so concentration may be directed towards other Adidas brands Not doing well in fashion market

Opportunities
Fitness and training centered Capability to start a signature line that is fashion forward Affiliate with major league organizations that are not currently affiliated with their main competitors

Threats
Decreasing shoe market share Competitors getting new shoes to the market quicker

PROBLEM STATEMENT Two Major Problems

1. Differentiating Themselves
Going head to head against companies such as Nike and Adidas is what caused the company to fall Find a market where Nike and Under Armor are not directly competing

2. Lacks Prominence in Womens Market

Return to what the company is best at

IDENTIFY ALTERNATIVES
1st Major Problem: Differentiating Themselves Affiliate themselves with UFC as a short term way of increasing presence in the training market.

Produce fitness equipment

Open a Reebok gym that has a Reebok retail store in it (Blue Ocean Strategy)

2nd Major Problem: Lacks prominence in womens market Make a fashion forward signature line that is made by Reebok, but carries a different name. Create contests for design students to create shoe designs for Reebok Develop Reebok brand that targets the niche market of Yogis. (Rbk Yoga)

ANALYSIS OF ALTERNATIVES: DIFFERENTIATION

Affiliate themselves with UFC as a short term way of increasing presence in the training market.

PROS Competitors are not involved with UFC

CONS UFC produces apparel under their name

Fitness and Training focused

Increase brand awareness

Negative opinions about UFC

UFC is primarily targeted to men

ANALYSIS OF ALTERNATIVES: DIFFERENTIATION

Produce fitness equipment

PROS
Concentrate on fitness and training Main competitors are not currently doing Utilize current brand awareness Vertical Integration if open their own gym

CONS Costly to produce Increase in safety liability Lack experience in market

ANALYSIS OF ALTERNATIVES: DIFFERENTIATION

Open a Reebok gym which has a Reebok retail store in it (Blue Ocean Strategy).

PROS
Main competitors are not currently doing Platform to promote their products Further solidify their niche in fitness and training Already have brand loyalty Capable of hiring big name trainers

CONS Financial risk Inexperience in the market

ANALYSIS OF ALTERNATIVES: TARGETING WOMEN

Make a signature product line of fashion shoes that are made by Reebok, but carries a different name.

PROS Different Focus on fashion, not fitness. Attract women accessories with different outfits Build customer loyalty

CONS Not enough profit Consumers may not recognize they are made by Reebok Already have Alicia Keys line which is similar

ANALYSIS OF ALTERNATIVES: TARGETING WOMEN

Create contests for design students to create shoe designs for their company

PROS Gives opportunities for design students

CONS Lose some control in the design process

Increases community ties and brand loyalty

Generates more ideas and creativity

May do more harm than good

ANALYSIS OF ALTERNATIVES: TARGETING WOMEN

Develop Reebok brand that targets the niche market of Yogis. (Rbk Yoga)

PROS Yoga is increasing in popularity

CONS Must compete with brand existing Yoga apparel companies May not be able to gain enough recognition in the market

Will attract more women

Align with fitness focused strategy

Enter Yoga community

ACTION
Gym and Fitness Equipment Manufacturing Industry Gym, Health, and Fitness Club Industry Yoga Apparel Industry (RBK Yoga)

PORTERS FIVE:
GYM AND FITNESS EQUIPMENT MANUFACTURING INDUSTRY Rivalry Among Competing Sellers LOW-MODERATE

Threat of New Entrants LOW

Threat of Substitute Products HIGH Bargaining Power of Suppliers MODERATE Bargaining Power of Buyers - MODERATE

PORTERS FIVE:
GYM, HEALTH, AND FITNESS CLUB INDUSTRY (BLUE OCEAN STRATEGY) Rivalry Among Competing Sellers HIGH

Threat of New Entrants MODERATE-HIGH

Threat of Substitute Products HIGH Bargaining Power of Suppliers LOW Bargaining Power of Buyers - LOW

PORTERS FIVE:
YOGA APPAREL INDUSTRY INDUSTRY Rivalry Among Competing Sellers HIGH

Threat of New Entrants LOW

Threat of Substitute Products MODERATE Bargaining Power of Suppliers LOW Bargaining Power of Buyers - MODERATE

IMPLEMENTATION
3 Key Actions to Making Them Capable Brand Extensions:
1. Staffing the Brand Extensions 2. Acquiring, Developing, and Strengthening Key Resources and Capabilities 3. Structuring the Brand Extensions and Work Effort

 Constantly be looking at financials Feedback from anyone in the value chain Hold meetings with managers often to reevaluate current strategic plan and make any changes necessary Make sure to remain motivated and innovative

CONCLUSION

The results of this report show that by restaging the brand, Reebok has more than enough resources and capabilities to not only be a successful organization now, but also into the future!