Case Analysis of Reebok International

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STEP 1

Strategic analysis:
Strategic communication: Reebok used strategic communications to communicate its strategic intent, mission, vision, and strategies. For example, Reebok communicated that it did not support apartheid and so it withdrew its operations from the Republic of South Africa. In addition, it established its HRD across the world with great fanfare to announce that it was addressing human rights issues. Moreover, sub-contractors in China were required to give in writing that they did not use child labor. In addition, the annual Reebok Human Rights Awards were established to distinguish those who protested against the violations of human rights. It also sponsored an Amnesty Concert called "Human Rights Now" to commemorate the adoption of the Universal Declaration of Human Rights. In other words Reebok was communicating its intent down to the functional and operational levels. In other works Reebok was positioning itself as a champion of human rights.

Competitive Strategies:
Reebok uses a sales promotion that involves each of its employees. Every year its employees are emailed discount coupons that they can e-mail to any friend or relative they want. The employee ID remains on the electronic discount coupon and the employee whose ID is shown on the largest sales wins a prize. The employees can generate an unlimited number of e-mails and the sales increase by 25% only through these coupons being generated.
However, the core competitive strategy of Reebok is that it looks to contractors in Asia to manufacture their shoes. This strategy offers the competitive advantage of price and flexibility; however, it detracts from its image of 'a champion of human rights'. Every scandal relating to the manufacture of products in Asian countries the reputation of Reebok suffers.

Competitive Stance:
With every contractor misbehaving with its employees, Reebok needs to reposition itself and launch a publicity campaign to repaint its tarnished image. The competitive stance of Reebok stems from its financial strength; its growth rate and its liquidity were phenomenal. Its EPS rose and revenues increased. In addition, the company had enjoyed first mover advantage in diversification and its brand Rockport dominating the walking shoe segment. Most importantly Reebok has tried to distinguish itself for its quality and being market oriented.

Competitive Intelligence:
Reebok intelligence in its apparel division failed where it was not able to maintain its quality and reputation. Its competitive intelligence also failed when there was conflict of interest in its top management. Its competitors engineered this, it is alleged. The competitive intelligence of Reebok has helped it to diversify and maintain its first mover advantage. In addition, Reebok has been using intelligence to increase and stretch the PLC of its products, often finding niches in foreign markets. Reebok is combining competitive intelligence with research and development to increase its market share. This is very helpful in the fast growing apparel industry. The company has often been let down by its competitive intelligence and this has resulted in slay suits engineered by Nike. The company needs intelligence to keep abreast and ahead of laws that might impose taxes on the company.

Marketing Capacity of Reebok:

To an extent Reebok has been responsive to the market forces. It applied concentrated growth strategy at the inception; there were only three types of shoes for men. The company ...