Nike Reebok - 4026 Words

Company Overviews Nike In 1964 in Oregon, Phil Knight and Bill Bowerman join together to make a new enterprise; each contributed about $500 to the partnership. The company started bringing low priced and high tech athletic shoes from Japan to replace the German domination of athletic shoes in the industry. In 1971, a graphic design student created the Swoosh trademark for a $35 fee. In the same year Jeff Johnson, Blue Ribbon Sports first employee, made his most durable contribution to the company in coming up with a new name, Nike, after the Greek goddess of victory. NIKE is the world s #1 shoemaker and controls over 20% of the US athletic shoe market. Reebok Reebok s ancestor-based company came from the United Kingdom and it†¦show more content†¦Consumers The bargaining power of consumers is medium to high. The power of purchases made by the individual buyers group is not concentrated in large volumes and the products that the consumer purchases are not standardized. With low switching costs in process and with so many buyers, the shoes industry has to be updated very often. Furthermore, the industry sets and creates the fads and determines what is hot. On the other hand, the buyers, like corporate retailers and sports teams, have very high bargaining powers. Because, the shoes they wear have to be changed often and also sports teams can become great advertisers for any given company. Potential Entrants The threat of new entrants into the industry is low. The start-up costs are somewhat high, consumer loyalty within the market is moderate and the learning curve is pretty short. The entrance barriers are high in that the capital requirements are high due to up-front advertising and research and development. Also, economies of scale in production will be difficult to reach due to the difficulties of penetrating the market that is dominated by the large five: Nike, Reebok, Coverse, LA Gear, and Stride-Rite. Furthermore, it will be almost impossible to achieve product differentiation in terms of brand identification and product difference, since the big five set the trends. Also,Show MoreRelatedNike vs. Reebok1378 Words   |  6 PagesNike vs. Reebok Questions 1. The success of Nike was strictly fortuitous and had little to do with great decision making. Evaluate this statement. The important part of the success was due to the far-sight of Nikes management team. Nikes CEO, who was a marathoner and knew what runners wanted for their shoes, had made a very basic strategy work; make the products that fit their consumers needs. Examples of great decision making are: • Diversifying products (into sports wears and others)Read More Company Overviews of Nike and Reebok Essay3983 Words   |  16 PagesCompany Overviews of Nike and Reebok In 1964 in Oregon, Phil Knight and Bill Bowerman join together to make a new enterprise; each contributed about $500 to the partnership. The company started bringing low priced and high tech athletic shoes from Japan to replace the German domination of athletic shoes in the industry. In 1971, a graphic design student created the Swoosh trademark for a $35 fee. In the same year Jeff Johnson, Blue Ribbon Sports’ first employee, made his most durable contributionRead MoreCompetative Analysis: Puma, Reebok, Adidas and Nike.1192 Words   |  5 PagesReethink,Reesport,Reejoy.Always challenge and lead through creativity. | Price Analyzing the prices of Puma and comparing with its competitor prices was discovered, that all of them are more or less on the same price levels – medium to high. Although, Nike and Adidas products are mostly expensive, while Puma is providing products for affordable prices. Today’s Puma is not only sport clothing and equipment, but also accessories. Puma nail polish, deodorant, shower gels and perfume are easy to find notRead MoreNike vs. Reebok1362 Words   |  6 PagesNike vs. Reebok Questions 1. 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Adidas, Converse, Nike and Reebok have been outsourcing productionRead MoreNike : An American Inspired Fitness Brand That Relishes Global Success1685 Words   |  7 PagesCompany Mission Reebok is an American-inspired fitness brand that relishes global success. The innovation strategy within the company s roots is to create clothing and accessories allowing the athlete to train at their maximum potential. By using the technologies available as well as innovating to create new sport apparel, reebok can provide a material benefit to consumer’s fitness activities. The direct mission of the Reebok company is to â€Å"Challenge and lead the fitness world through creativityRead MoreReebok Ad Campaigns1739 Words   |  7 PagesREEBOK Introduction: Reebok is the oldest running shoe company, having been started by a cobbler in the UK in the 1890s. 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