Case 27: New Balance Athletic Shoe Inc.
Name: Fernandez, Carla Rose M.
Year: 5th Year
Date of Submission: August 7, 2013
* To be more competitive in the market
* To open all possible opportunities for the company
a. Expand and innovate their product lines
b. Increase market share and increase loyal customers II. Statement of the Problem
* Operational issues such as high labor cost, high inventory and longer lead times. * Acquisition of Reebok (third largest)by Adidas (second largest) * New Balance don’t use athletes to advertise their products III. SWOT
c. Strong brand name and quality product.
d. Loyal customers
e. The company’s culture was also very entrepreneurial, starting with the owners’ willingness to take risks and encourage others to do the same. f. They are focused on where they are good at.
g. Their employees are flexible enough to do other job. h. Their shoes come in various sizes and length for different type of feet. i. The company has been a part of several charitable deeds in the past years. * Weaknesses
j. Brand familiarity is low compared to its leading competitors like Nike and Reebok. k. New Balance is endorsed by no one.
l. Limited product line
m. Can easily establish partnership because they are smaller company than their leading competitors. n. Be known in other Asian and European countries.
o. Acquire the much smaller athletic shoe brand.
p. Product line extensions and innovations
q. Open manufacturing firms in countries that have low labor cost like China.
r. Threat from other leading competitors.
s. Competitors’ products are more stylish and less cost. IV. Alternative Courses of Action
* They could...
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