Preview

New Balance

Satisfactory Essays
Open Document
Open Document
276 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
New Balance
SWOT ANALYSIS ON New Balance Athletic Shoe
New Balance Athletic Shoe, Inc. (NBAS), best known as simply New Balance, is a footwear manufacturer based in Boston, Massachusetts. It was founded in 1906 as the New Balance Arch Support Company. Eschewing expensive advertising campaigns, it has nevertheless grown to be one of the largest makers of sports footwear in the world.

New Balance is notable in that it has continued to maintain a manufacturing presence in the United States as well as in the United Kingdom for the European market—in contrast to its competitors in the same market space, such as Nike and Adidas, who design products in the US and Europe, but purchase the majority of their Footwear and Apparel from manufacturers in China, Vietnam, and other developing nations. The result of this corporate decision is that the shoes tend to be more expensive than New Balance's competitors. To offset this pricing discrepancy, New Balance differentiates their products with technical innovations , such as a blend of gel inserts, heel counters, and a greater selection of sizes, particularly for very narrow and/or very wide widths.

Strengths

* Cost advantage
* Asset leverage
* Effective communication
* High R&D
* Innovation
* Online growth
* Loyal customers
* Market share leadership
* Strong management team
* Strong brand equity

Weaknesses

* Bad communication
* Diseconomies to scale
* Over leveraged fiancial position
* Low R&D
* Low market share
* No online presence
* Not innovative
* Not diversified
* Poor supply chain
* Weak management team

Opportunities

* Acquisitions
* Asset leverage
* Financial markets (raise money through debt, etc)
* Emerging markets and expansion abroad
* Innovation
* Online
* Product and services expansion
* Takeovers

Threats

* Competition
* Cheaper technology
* Economic slowdown
* External changes (government, politics, taxes, etc)
* Exchange rate fluctuations
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    New Balance Case Study
    • 518 Words
    • 3 Pages

    New Balance Case Study

    The New Balance company is one of the few American footwear retailers who still manufactures its product domestically. Additionally, they are the very last major corporation in this industry that builds the majority of its product in America: an impressive 80%. The other 20% is manufactured in New England. We hoped you liked our list of the seven facts you need to know about the New Balance…

    • 518 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Big Foot Consulting
    • 525 Words
    • 3 Pages

    Big Foot Consulting

    Suggested Strategies: Some ideas for New Balance’s ad campaigns could include billboards, newspaper coupons, and email coupons. New Balance could also throw in some free trials, promotional events (similar to CollegeFest), sales campaigns, booths at outdoor competitions & athletic events, and TV commercial themes (like the cavemen or gecko for Geico). New Balance could also get involved with sponsorships for things relative to New Balance products such as professional teams, athletes, club teams, and schools teams (New Balance…The Official Shoe of ________ ). The company could also try a “New Balance Triathlon or Marathon,” as a company sponsored event that offers products as rewards.…

    • 525 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Nike and Under Armour (Accounting Paper)
    • 5144 Words
    • 21 Pages

    Nike and Under Armour (Accounting Paper)

    Nike was incorporated in 1968 and has become arguably synonymous with elite footwear/apparel amongst the world population (Nike 10K, 2009). Nike’s primary business “is the design and development and worldwide marketing of high quality footwear and apparel” (2009, pg.1). In addition, Nike also designs/markets sports equipment and accessory products. Nike puts a heavy emphasis on investing in the innovation and design of their products to give their customers a high-quality product. Nike is the largest seller of athletic footwear and apparel in the world (2009). Nike sets the bar for other companies in the sports apparel/footwear industry, like Under Armour.…

    • 5144 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Nike and What It Does to Third World Countrys
    • 1737 Words
    • 7 Pages

    Nike and What It Does to Third World Countrys

    The current manufacturing practices of the sneaker industry, in particular companies such as Nike, Reebok, Adidas, Converse, and New Balance, takes place throughout the globe. With the industry experiencing severe competition, and the product requiring intensive labour, firms are facing extreme pressure to increase their profit margins through their sourcing practices. The following paper will analyse the sneaker industry, while examining the multitude of viable manufacturing options, and critiquing their current manufacturing structure.…

    • 1737 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    The Manufacturing Practices of the Footwear Industry: Nike vs. the Competition
    • 1744 Words
    • 7 Pages

    The Manufacturing Practices of the Footwear Industry: Nike vs. the Competition

    To properly review the manufacturing in the footwear industry, it is necessary to first gain an understanding of the dominant leaders in the marketplace. The industry is currently experiencing hypercompetition, led by six main firms – Nike, Reebok, Adidas, Fila, Converse, and New Balance (see exhibit 1), with nearly $7 billion in revenues domestically. Nike is the industry leader, with a 47% market share, followed by Reebok, a distant second at 16%, and Adidas at 6% (see exhibit 2). This category is facing decreasing demand and the rising popularity of alternative footwear, resulting in more pressure than ever before to achieve high gross margins through effective global sourcing practices.…

    • 1744 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Nike Financial Ratio Executive Summary
    • 1453 Words
    • 6 Pages

    Nike Financial Ratio Executive Summary

    With 2010 annual revenue of $19,014,000,000, Nike’s revenue was substantially greater than the identified competitors. Due to the revenue difference and the lack of athletic footwear company in the list, I expanded the analysis to include the German company Adidas. Adidas is listed under SIC 5139 – Footwear. Despite the SIC differences, Adidas and Nike are the most direct competition for the athletic market. In addition, Adidas’ 2010 revenue converted to USD is $ 16,047,083,997.…

    • 1453 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Phil Knight bio
    • 1604 Words
    • 7 Pages

    Phil Knight bio

    As mentioned earlier, the global sportswear market is considered to be highly competitive. The behemoths of the sports apparel and equipment industry are; Nike, Adidas, Reebok and Puma. Adidas emerged in the industry before Nike and now the Adidas Group owns both Reebok and Adidas. Adidas is the largest sportswear manufacturer in Europe and second largest in the world (“Adidas Group History”). On the other hand, Puma is well known for its soccer shoes and formula one and NASCAR clothing. Presently, they distribute products in more than 120 countries (“PUMAs new archive 2007”). Both Adidas Group and Puma originated in Germany. Product innovation remains a focal point in gaining market share in this industry and to accomplish this, these companies are making technological advancements in order to keep up with changing trends in fitness. Product innovation is the creation and introduction of a good or service that is either new or improved on previous goods or services (Wise,…

    • 1604 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    Giant Leap Executive Summary Essay Example
    • 550 Words
    • 3 Pages

    Giant Leap Executive Summary Essay Example

    After analysis of the four major markets, we came to the conclusion that there was ample business opportunity for a high-end (8-9 Star) quality athletic shoe since none of the other companies were pursuing that portion of the market. We also wanted to restrain our model availability to 200-250 to position our products firmly in the high quality differentiation niche market, and in order to play on our strength of low reject rates that can be realized with smaller model availability. By year 16 positive gains were shown in every category. Net Revenues increased by $92 million, Earnings Per Share…

    • 550 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Air Jordan Marketing Strategy
    • 1554 Words
    • 7 Pages

    Air Jordan Marketing Strategy

    As you can see, Nike is a large brand when it comes to shoes, apparel and its various other sources of…

    • 1554 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Best Essays

    New Balance: Developing And Integrated Csr Strategy
    • 1903 Words
    • 8 Pages

    New Balance: Developing And Integrated Csr Strategy

    New Balance is an American athletic shoe and apparel company founded in 1906. Initially, New Balance started out peddling arch supports to law enforcement officers and waitpersons/servers in restaurants. Now the company boasts a collection of men and women sport shoes – running, cross training, basketball, tennis, hiking, and golf. Additionally, New Balance has an impressive men/women apparel and accessories division, along with a kid’s section as well. What I found interesting and unique, New Balance offers a custom made option for customers to…

    • 1903 Words
    • 8 Pages
    Best Essays
    Read More
  • Good Essays

    New Balance Essay
    • 379 Words
    • 2 Pages

    New Balance Essay

    New Balance has been in business for 103 years. The company started in Boston manufacturing shoes of police officers, waiters and any other occupations that kept people on their feet all day. In the 1970’s New Balance switched its focus and decided to make athletic shoes for all athletes.…

    • 379 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Marketing Report for New Balance Company
    • 1471 Words
    • 6 Pages

    Marketing Report for New Balance Company

    New Balance Company offer similar products in different versions according to the age and life-cycle segmentation. Under the same style shoes, New Balance may offer small size shoes for children, and offer bigger sizes shoes to adult men and women. Also, marketers will offer some shoes designed particularly for one specific segment of the age cycle, such as most mature clients look for comfortable; fairly price, classic styles, good quality shoes, so New Balance offer the classic style shoes to those kind of people. (Rooyen, 2009)…

    • 1471 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    New Balance: Early 20th Century Origins

    • 1458 Words
    • 6 Pages

    New Balance: Early 20th Century Origins

    New Balance was founded in 1906 in Belmont, Massachusetts, where the company began operations as The New Balance Arch Company. Initially, the company manufactured arch supports and orthopedic shoes and, in fact, for much of the 20th century it continued to focus on this narrow, niche-oriented business line, rarely expanding and never moving beyond the boundaries of its native state. Like its physical growth, The New Balance Arch Company's financial growth occurred at a crawling pace as well, inching nearly imperceptibly forward as the decades passed. About the only notable achievement during the company's first half-century of existence was the establishment of a solid reputation, a renown forged by the quality of its specialty shoes and buttressed by decades of consistent high-quality craftsmanship. Though the work of the company was held in high regard, there was only a small circle of customers who could profess to the quality of New Balance's footwear. Beyond this tight circle, the company was unknown; it was a small, Northeastern enterprise blanketed in anonymity…

    • 1458 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Marketing plan for shoes company -New Balance
    • 7842 Words
    • 31 Pages

    Marketing plan for shoes company -New Balance

    New Balance Athletic shoe, INC. is the second-largest maker of running shoes in the America and has wide range of athletic footwear for males and females, athletic apparel and accessories. New Balance Athletic Shoe, Inc is an American private owned company, who has more than 2500 associates in the world and distributes the products in over 120 countries. The company has been running for over 30 years and has 12 wholly-owned subsidiaries and numerous licensees, joint ventures and distributors all over the globe, for instance, Australia, New Zealand, UK, Canada, Japan and South Africa. Its U.S. market share rose from 2% in 1997 to 12% in 2003.…

    • 7842 Words
    • 31 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    New Balance: Issues and Recommendations
    • 562 Words
    • 3 Pages

    New Balance: Issues and Recommendations

    Since China is selling the low-price “fashion” shoes that are indistinguishable from the originals, brand value of New Balance can be damaged.…

    • 562 Words
    • 3 Pages
    Satisfactory Essays
    Read More

Related Topics