REEBOK CASE STUDY

University Degree Business and Administrative studies

REEBOK CASE STUDY

Summary

Reebok started out not with a running shoe but with an athletic shoe that designed for women which was called “the freestyle” aerobics shoe. Between 1987 and 1989, Reebok was the world’s #1 athletic footwear brand. Over the Nike regained the #1 share of the U.S. athletic footwear market. This made Reebok enter into many complications because their economic market began to drop. Since Reebok’s main emphasis was on women’s athletic shoes and Nike was dealing with men athletic shoes, it was giving Reebok major competition. Many people would buy men shoes basically because they see that all sports teams have them on and they want what they have. My main recommendation for Reebok is to find a way to get more male athletes to endorse their products so they can catch the interest of younger children between the ages of 12-17.

Overview

The main thing dealing with Reebok shoes is, you have to go over the Strengths, Weaknesses, Opportunities, and Threats.

Strengths- they remained #2 to Nike, which would not give them too much trouble passing over Nike. They contained World Wide distribution, which gave them a chance to try to win over customers in different countries. The best thing that they have is that they have good financial strengths. As long as they are maintaining a good financial status, they would be able to purchase more products and stay in competition with their competitors.

Weakness- the weaknesses that Reebok has are; their main product is based on women’s shoes, which are not a massive marketing product. Women’s shoes are ...

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Weakness- the weaknesses that Reebok has are; their main product is based on women’s shoes, which are not a massive marketing product. Women’s shoes are starting to sale because of the growth of women’s sports but they will never be able to top the market of men’s shoes. The major weakness of Reebok is that they are trying to reach the wrong age group of consumers. Since Reebok has like a walking or running shoe they are basically catching the interest of people in the age groups of 25-45 to buy their product. As soon as those consumers stop purchasing their product, they do not have any younger people that are interested in their product.

Opportunities- Reebok is provided with many new opportunities that can help them market a new style of shoes. They are provided with new technologies, which can help them produce a new modern style of shoe or a shoe for an athlete that no one has seen before. Another opportunity that Reebok can have is the chance to get more athletes to endorse their product. If Reebok gets more athletes, that would give them a chance to get the athlete to get in commercials and get their product out to the public and catch the interest of young consumers.

Threats- Reebok’s major threat has to be its competitors. If Reebok is able to overcome its competitors by bringing out a new style and not just catching the attention of the mature market they would be able to beat out their competitors. Once Reebok comes up with a unique style and massive advertisement they would be able to over power their competitors.

Diagnosis

Reebok has to try to find solutions to 2 major problems, which are their short term, and long-term problems. The short-term problem that Reebok has is that, they have to find a way to reach consumers in the age range of 12-17 so they can sale more products. If they were able to develop a product that catches the interest of young people then they would sell more product. The long-term problem that they have to overcome is, they have to find a way to over power Nike and become the #1 selling shoe in the world. If Reebok would be able to come up with a catchy slogan and a shoe that catches the interest of young consumers, then they would not have much of a problem catching up with Nike. They do not have the power to overcome them just yet because Nike has more experience over them but over a period of time they would have a chance to become the #1 selling Shoe Company in the world.

Solutions- A few solutions that Reebok can use to solve their problem would be to go to more athletes and get them to endorse their product. If they can get them to endorse there product then the can get more commercial advertisements. By them getting more advertisements on television they would be able to get the word out to younger viewers. If they get the word out the can have both young and older people buying their product. Another solution could be for Reebok to increase their prices on their shoes. If they charged more for their product they would make a bigger profit. If Reebok makes a bigger profit that would open doors for more opportunities to purchase more products that they can put into stores. They can even get enough products to open their own store so they would not just have to sell their shoes out of a regular shoe store. There are so many things that Reebok can do but it is just up to their marketing and advertising team to come up with a good solution to sell more of their product.

Recommendation- My main recommendation for Reebok is to get the attention of younger consumers. If they are able to get the attention of younger consumers they are guaranteed to sell more of their product. If Reebok gets more children to buy their product and they have the ability to get more famous athletes to endorse their product, they will sell more products and make more money.