New Balance Athletic Shoe Company: Situational Analysis

Situation analysis New Balance Athletic Shoe Company has been ranked the third in the US Athletic shoe industry. During the financial year 2007, it recorded revenues of $1,630 million, an increase of 5.2% over 2006 (www.businessweek.com). Since the athletic shoe market is highly competitive, New Balance is trying to figure out how to compete in this highly competitive market against such industry giant like Nike, Adidas/Reebok. Below is a SWOT analysis of New Balance. SWOT analysis Strengths | Weaknesses | * Brand name, quality product, and global recognition. * Strong distribution system * Brand loyal customer * Offer special product * Good reputation and relationship with distributors and retailers | * Too many types of product and performance. * Lack of celebrity endorsement. * High manufacturing cost | Opportunities | Threats | * Sales and profit growth * Line and brand extensions * Market penetration * Product development | * Competition * Condition of economy | New Balance’s strengths include its brand name, quality product, and global recognition. New Balance not only carries a name that has been world-renowned, it has prided itself on providing quality athletic shoes for the serious athlete. Also, it can be said that New Balance has strong global recognition as the company has marketed its products in more than 120 countries across the globe. Besides, strong distribution system which has allowed New Balance to gain efficiency in sales and distribution is its strength. Currently, New Balance has not only strong retailer network but also a good distribution system on the web. Customers can buy New Balance’s products through New Balance retailer stores or through some websites such as www.newbalance.com, www.onlineshoes.com, www.amazon.com, www.zappos.com etc…Brand loyal customer and offering a special product are also strength of New Balance. It is the only athletic shoe company that offers its