New Balance: Strategic Management
– STRATEGIC MANAGEMENT
NEWS DISCUSSION- NEW BALANCE
1
1. Company Profile:
Ranked 3rd in the US Athletic shoe industry, New Balance Arch Company as it was known in 1906 begun manufacturing arch support, orthopaedic shoes supports and prescription footwear for people with problem feet. In 1954, the company changed its name to New Balance Athletic Shoe Inc. with a focus on running shoes, but gradually entered the other segments such as walking, cross training, basketball, tennis and adventure sports. (Bhat, 2005)
New Balance started with a niche in developing accommodative foot orthotics and insoles to accommodate all kinds of foot issue and therefore when New Balance went into shoe manufacturing, they decided to take advantage of their expertise and cater to all foot-types by providing five different shoe widths in an industry where three was the standard.
New Balance’s expertise was in manufacturing custom-made footwear for sportsmen and that soon became the primary business of the company, they were also known for their innovative designs with multiple widths selection providing both men and women more comfortably fitted shoes.
New Balance’s humanitarian stance toward labour has won favour among shoe consumers especially following boycotts of Nike and Adidas when these two brands came under fire for paying workers in third world countries sub-minimal wages, encouraging child labour, and its sweatshop working conditions. New Balance aims to adhere to minimum living wage guidelines and retains the manufacturing of several shoes within the US, such that several products bore a ”Made in USA” label, versus “Made in China”.
A favourite amongst consumers aged 30 and above, whose preference were performance and functionality over fashion appeal and celebrity endorsements. However, due to its focus on the middle-aged group, New Balance has neglected the consumers below 30 years of age.
(Bhat, 2005)
2
2. LOVE/hate- This is the New Balance.
NEWS DISCUSSION- NEW BALANCE
1
1. Company Profile:
Ranked 3rd in the US Athletic shoe industry, New Balance Arch Company as it was known in 1906 begun manufacturing arch support, orthopaedic shoes supports and prescription footwear for people with problem feet. In 1954, the company changed its name to New Balance Athletic Shoe Inc. with a focus on running shoes, but gradually entered the other segments such as walking, cross training, basketball, tennis and adventure sports. (Bhat, 2005)
New Balance started with a niche in developing accommodative foot orthotics and insoles to accommodate all kinds of foot issue and therefore when New Balance went into shoe manufacturing, they decided to take advantage of their expertise and cater to all foot-types by providing five different shoe widths in an industry where three was the standard.
New Balance’s expertise was in manufacturing custom-made footwear for sportsmen and that soon became the primary business of the company, they were also known for their innovative designs with multiple widths selection providing both men and women more comfortably fitted shoes.
New Balance’s humanitarian stance toward labour has won favour among shoe consumers especially following boycotts of Nike and Adidas when these two brands came under fire for paying workers in third world countries sub-minimal wages, encouraging child labour, and its sweatshop working conditions. New Balance aims to adhere to minimum living wage guidelines and retains the manufacturing of several shoes within the US, such that several products bore a ”Made in USA” label, versus “Made in China”.
A favourite amongst consumers aged 30 and above, whose preference were performance and functionality over fashion appeal and celebrity endorsements. However, due to its focus on the middle-aged group, New Balance has neglected the consumers below 30 years of age.
(Bhat, 2005)
2
2. LOVE/hate- This is the New Balance.
References: 1. Bhat, U.S, (2005), New Balance: Striking Balance With Comfort, ICFAI Business School Research Centre, Bangalore, India 2. Fabric 2 Fashion, (2008), New Balance Introduces “Love/hate”, http://www.fibre2fashion.com 3 4. Market-interactive.com, (2008), New Balances Paints Orchard MRT Red, http://marketinginteractive. 9. The Boston Globe, (2008), New Balance Triples Ad Spending, Launches New Campaign, http://www.boston.com