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Reebok presentation for in context to International Business subject...
 

Reebok presentation for in context to International Business subject...

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Its useful to MBA student who study International Business as subject.

Its useful to MBA student who study International Business as subject.

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    Reebok presentation for in context to International Business subject... Reebok presentation for in context to International Business subject... Presentation Transcript

    • REEBOK Ruchi Dalal MBA Sem – III
    • Company profile • Founded in England in 1895 as J.W. Foster and Sons, a manufacturer of track shoes • Renamed Reebok in 1958. • North American distribution rights purchased by Paul Fireman in 1979. • Fireman and a few investors bought the parent company in 1984.
    • PRODUCT LINE • The product line of a Reebok retail outlet generally consists of sports accessories. The product line is divided into four sections: 1) 2) 3) 4) 5) Shoes Apparels Sports equipment Exercising / health products Personal grooming.
    • PRODUCT MIX
    • Major competitors At Global level • Nike • Woodland • Liberty • Lancer • Lotto • Puma • Red chief In India • Bata • Lakhani • Action
    • Reebok in India • It entered the Indian market in the year 1995. When Reebok entered India, fitness was a primitive industry in India. • People used to buy branded shoes only for fashion and image. • Reebok started educating people about the fitness and by the time Reebok established itself in the Indian market, a significant portion of consumers started buying sports shoes for fitness activities. • In year 2006, Adidas acquired Reebok for USD 3.8 billion. • In India, Adidas and Reebok have integrated in the year 2011. Reebok India strategy is different from Adidas strategy.
    • PEST Analysis Political Factors • In India, government allows foreign companies to establish their business, this is favorable situation. • In Q1 2012, the central government approved 100% FDI in single brand retail (with 30% goods sourced from Indian SMEs) which means foreign sports shoe retailers can now set shop more easily in India.
    • Economic Factors • GDP growth rate is estimated at 7.3% for the FY 2012-13, up from 6.8% for the previous year. • Inflation rate has fallen to 6.8% as compared to 8.0% last year. • The rupee has depreciated to record lows and the country’s high trade and fiscal deficits are pressurizing financial markets. • The middle class is rapidly emerging with increase in the no. of DINK households accompanied by an increase in disposable income; this is acting as a driver for the increasing demand for new goods like branded sport shoes.
    • Socio-Cultural Factors • In 2010, approximately 39% of the Indian population was in the age group of 20-44. • This growing young population drives up demand for branded sports shoes. • The country is steadily moving towards a more urbanized setup with a forecasted 32% of population attributed to urban India by 2015. • The urban Indian middle class as a whole is slowly moving away from its unhealthy Dalda consuming habits, and is adopting a healthier lifestyle which includes exercising and playing sports.
    • Technological Factors • The online retail market is growing at an annual rate of 35% helped by increased internet access; and easy returns by e-tailing websites like Myntra.com make it easier for the consumer to buy online. • India is poised to have the third largest no. of internet users in the world by 2013.
    • SWOT Analysis Strengths • First foreign player to change its existing shoe designs to fit the Indian foot better. • 1000+ stores across India – highest no. of single brand sports shoe retail stores in the country Weakness' • “Factory outlets” offering discounts all year round lead to brand dilution • Franchisees currently work on the Minimum Guarantee model which has led to high losses for the company in wake of dipping sales.
    • Opportunities • Adidas is planning to reposition the Reebok brand in India in 2013. • Change to the Cash and Carry model from the Minimum guarantee model will drastically reduce losses in the near future. Threats • Reebok was booked for Foreign exchange management act (FEMA) violations in July 2012. • Plan to switch to Cash and Carry model could result in the closing of more than 300 stores.
    • Related Facts • • • • 40 Main Footwear Factories in 8 Countries 600 Apparel Factories in 29 Countries 450 Raw Material Suppliers 27 Freight Forwarders • Transportation modes include Ship, Truck, Rail and Air • 34 Custom Brokers • Over 5,000 purchase orders placed each month