Operations Management and Management Science Case Study Capacity Planning New Balance Athletic Shoes Summary James Davis is the president and general manager of New Balance Athletic Shoes. The Boston‚ Massachusetts based company began producing corrective shoes and arch supports in 1906. New Balance garnered a reputation for quality specialty footwear when in the 1950’s it began producing running shoes for men. It is the beginning of 1978 and Mr. Davis has a number of important decisions
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CASE STUDY #1: NEW BALANCE Introduction New Balance was founded by William J. Riley in 1906 in the city of Boston. Riley started by making arch supports for customers who had to spend all day on their feet. Over time the building of arch supports led to the creation of his first running shoe in 1925. As part of a local running club‚ Riley capitalized on an opportunity to improve running shoes of the time and his designs became widely popular. His new running shoes became so popular
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Problems In reviewing the case of New Balance Athletic Shoe‚ Inc. it is clear that there are a few major problems that the company is facing. First of all‚ New Balance falls behind its other major competitors‚ Nike‚ Adidas and Reebok‚ in the area of marketing. Unlike its competitors‚ New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it
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New Balance Athletic Shoes | Case Study | | | 1. How important is continued product innovation to New Balance’s ability to compete in the marketplace? What timing and seasonal factors come into play? Who are the New Balance’s key suppliers and partners in the innovation ecosystem? What role do competitors play? Discuss the interdependencies and risks inherent in this marketplace in the context of Adner’s article? 1. Continued product innovation is a key to competitive success due to
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New Balance is the big five sneaker companies in the world. Comparing to other big five‚ including Nike‚ Adidas‚ and Reebok‚ it has its specific operations strategy. In fact‚ the idea of ‘Keeping unique’ is what they insist from the day one of its business. New balance emphasize on values of fit‚ performance‚ and manufacturing. It builds a distinct culture in its network internally and externally. The owners of New Balance would like to differentiate from their competitors. It includes the following
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Athletic Shoes Industry Strategy Comparison Report of Nike‚ Inc. and Adidas AG wei 4/30/2010 ABSTRACT This report is an analysis of the athletic shoes industry on both a global and U.S. market. This report is to analyze the external and internal issues facing this athletic shoes industry‚ and the companies that operate within it. This analysis includes a comparison of Nike‚ Inc. and Adidas AG who are footwear manufacturers in the world. However‚ Nike spent thirty years developing from the
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Riley in 1906 as the New Balance Arch Company‚ in Belmont‚ MA‚ New Balance manufactured arch supports and orthopedic shoes. During the fifties and sixties‚ athletes turned to the company for customized running shoes due to New Balance’s unique expertise in handcrafting specialized footwear. Paul Kidd bought the company in 1956 and increased the shoe-making sector as demand grew. Production of running shoes soon became the company’s primary source of business. The New Balance "Trackster"‚ one of the
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Identifying the Business Requirements New Balance had a problem. Nike owned the lion’s share of the athletic shoe market and no one could touch them. New Balance was also behind Adidas and Reebok‚ but something happened in the last two years that changed everything. Nike also had a problem. They had gotten so big that customer relations became a low priority. Nike controlled the market and dictated supply and demand to even their biggest customers. Consumer input was ignored and requests
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New Balance Developing an integrated CSR strategy 1. For each of the Corporate Citizenship Management Framework (CCMMF) dimensions‚ identify key strengths and weaknesses for New Balance. CCMF Dimension Key Strengths • An accepted and understood corporate culture of “doing good” throughout all vertical aspects of the company • History of attempting CSR activities throughout the company Key Weaknesses • No formal CSR strategy that guides the companies initiatives • No centralized method or metrics
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Problem statement New balance is 100 years old privately owned company specialized in the design‚ manufacturing and retailing of athletic footwear. The company is among the top five producers in the athletic shoe industry. It manufactures and sells its products internationally and operates factories in northern United States. Recent announcement of an Adidas-Reebok transaction would bring together two (2) of the most important rivals‚ therefore changing the global shape of the athletic shoe industry
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