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System Essential Presentation

Presented by Presented by

Rohit RayRohit Ray

NewsImportant Events:

1996: The push into performance sneakers also translated into large increases in expenses, resulting in decreasing net income, from $254.5 million in 1994 to $164.8 million in 1995 to $139 million in 1996.

1998: Reebok took a restructuring charge of $23.7 million in the first quarter of 1998 for costs related to eliminating management layers, combining business units, and cutting its workforce by 500, or 10 percent.

1999: Declining sales prompt Reebok to lay off 10% of its global workforce.

Substitute products and services 1) They are an attractive alternative product or service, which customers can easily shift to if there are low switching costs

OR

Substitute products and services

2) The availability of substitutes invites customers to make price, quality and performance comparisons

IS IT CHEAPER?

CAN I JUMP HIGHER? CAN I RUN

FASTER?

Substitute products and services

3) Competitively priced substitutes impose a maximum value on prices relevant industry can charge for its products or services

What is worth ?

Reebok’s Mission:◦ Always challenge and lead through creativity.

At the core of the Reebok brand is the affirmation of the uniqueness of all people.

Reebok Strategic Focus:◦ to become a consumer-driven brand that reflects the emphasis on

individuality.

Athletes Endorsed by Reebok:◦ Sidney Crosby◦ Alexander Ovechkin◦ Yao Ming◦ Thierry Henry

Reebok Partnerships:◦ NFL◦ NHL◦ MLB

Rivalry Among Participants

Market of Competitive Rivalry

CompetitionThe top 3 firms in this industry are Nike,

Adidas, and PumaThe industry is relatively old, so firms

must fight for market share rather than relying on market growth

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