Reebok project case study

Reebok is a shoe maker specialized in sneakers. The company is an online and internationally based brand. To help support sales, the company hired Gigi Hadid and other celebrities to be the models for their product. Reebok also worked with JJ Watt to produce a new line of sport shoes.

Some Products: Reebok Cross Nana $189.99, Reebok Transition $89.9

STRENGTHS

  • utilize the acquisitions of other firms to diversify its shoe line
  • can predict shoe market -produce a lot of diversity
  • the produces shoes are stylish and comfortable
  • the new technology developed by the firm allow it to produce better shoes

WEAKNESSES

  • not a strong position in the shoe industry
  • go for too many segments and can't handle all of them
  • no price elasticity
  • get oversea may be a risk

OPPORTUNITIES

  • increasing demand
  • production oversea would cutdown its cost in labor and generate more margins
  • newer technology development
  • extend its distribution network via its own subsudaries or individual distributors

THREATS

  • Reebok is controlled bt unpredictable fads
  • it has strong competitors
  • risk of doing business abroad
  • product must be unique

NIKE

Nike is the main competitor of Reebok. The company's speciality is also sport clothing and sneakers and also use celebrities to model the products. They are international and online.

Products: Nike Air $140, Nike Hyperdunk $200

STRENGTH

  • Nike is the world's number one shoemaker
  • produces shoes for variety of sports (basketball, cheerleading, volleyball, golf, basketball etc..)
  • fast service
  • located in the US and in more than 180 countries
  • strong skills of research and diversity

WEAKNESSES

  • the income of business depends upon its share of the footwear market
  • its retail sector is very price sensitive

OPPORTUNITIES

  • Became a fashion brand for the youth
  • produce sport wear, sunglasses and jewellery
  • the World Cup and Olympics support the brand

THREATS

  • exposed to international nature of trade
  • costs and margins are not stable
  • a lot of competitions

RECOMMENDATION FOR REEBOK

Reebok is a well developed company with a lot of diversity and potential. However Nike is too strong as a competitor and Reebok could never have the opportunity to have a stronger position.

I suggest Reebok to produce abroad despite the risks because it would expend the company. Also, Reebok should try to have new and unique products.

Credits:

Created with images by Jennie Robinson Faber - "Reebok" • ariesa66 - "sneakers depend sports shoes" • durham_friedman - "Reebok" • Miranda Gabbard Photography - "Reebok" • portfolio - "shoes reebok night" • renaissancechambara - "Reebok Pump boots" • ~ezs - "NIKE" • Pexels - "countryside field footwear" • stux - "shoe sport training" • tiloe - "Nike" • Pexels - "feet footwear nike"

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