Mis Assignment
Assignment 1
Building IT systems at Reebok
Company History The athletic shoe industry in the United States was an $8.25 billion market in 2003. By 2010, industry revenue had hit $21.9 billion with sales of over 362 million shoes a year. The four largest companies (Nike, New Balance, and Adidas-Reebok) controlled 70 percent of that market. Reebok can trace its history back to Joseph William Foster, who made some of the first spiked running shoes by hand in London in 1895. In 1958, two grandsons started a companion company known as Reebok. But, the modern version was born in 1979 when Paul Fireman saw the shoes at an international trade show and negotiated for North American distribution rights. At $60 a pair, the shoes were the most expensive running shoes in America.
In 1982, Reebok helped launch the aerobic dance industry with a shoe specifically targeted to women. With explosive growth, the company went public in 1985. Growth continued and Reebok’s 1993 sales of $2.9 billion placed it second behind $4.4-billion Nike. The nearly $1 billion increase in sales from 1989 to 1993 indicates Reebok’s success in gaining market share. IT Head Tom Trainer joined Reebok in 1991 as the chief information officer (CIO). He noted that his role “is to enable the kid in Reebok to stay fresh and creative while also allowing the grown- up corporation to compete in global markets”. To accomplish these objectives, Trainer implemented videoconferencing, computer-aided design, the Internet, and laptops for the sales force. The goal was to improve communications among employees, faster development of products, and more effective sales presentations.
Before Trainer joined Reebok, the information systems area was less than up-to-date, with no global information system or way to look at data. Communications, primarily by telephone and fax, between the manufacturing partners and worldwide distribution network were slow. Turnaround on new products was equally
Building IT systems at Reebok
Company History The athletic shoe industry in the United States was an $8.25 billion market in 2003. By 2010, industry revenue had hit $21.9 billion with sales of over 362 million shoes a year. The four largest companies (Nike, New Balance, and Adidas-Reebok) controlled 70 percent of that market. Reebok can trace its history back to Joseph William Foster, who made some of the first spiked running shoes by hand in London in 1895. In 1958, two grandsons started a companion company known as Reebok. But, the modern version was born in 1979 when Paul Fireman saw the shoes at an international trade show and negotiated for North American distribution rights. At $60 a pair, the shoes were the most expensive running shoes in America.
In 1982, Reebok helped launch the aerobic dance industry with a shoe specifically targeted to women. With explosive growth, the company went public in 1985. Growth continued and Reebok’s 1993 sales of $2.9 billion placed it second behind $4.4-billion Nike. The nearly $1 billion increase in sales from 1989 to 1993 indicates Reebok’s success in gaining market share. IT Head Tom Trainer joined Reebok in 1991 as the chief information officer (CIO). He noted that his role “is to enable the kid in Reebok to stay fresh and creative while also allowing the grown- up corporation to compete in global markets”. To accomplish these objectives, Trainer implemented videoconferencing, computer-aided design, the Internet, and laptops for the sales force. The goal was to improve communications among employees, faster development of products, and more effective sales presentations.
Before Trainer joined Reebok, the information systems area was less than up-to-date, with no global information system or way to look at data. Communications, primarily by telephone and fax, between the manufacturing partners and worldwide distribution network were slow. Turnaround on new products was equally