3. EXECUTIVE SUMMARY
• FOUND IN 1895, BOLTON
• SUBSIDIARY COMPANY (SINCE 2005)
• SPONSORS WITH CROSSFIT, UFC, SPARTAN RACE AND LES MILLS
• ‘’ I AM WHAT I AM ‘’ & ‘’STAND FOR YOUR FIGHTER’’
4. Strengths 1. Reebok is amongst the top 3 largest seller of athletic footwear and
athletic apparel in the world.
2. Reebok brings out the perfect combination of technology and
fitness each year in its products.
3. Products are made not only in the premium range but also in mid-
range.
4. The reebok value store targets lower income groups thus
categorizing its products for each class of society.
5. The brand has been endorsed by many sports stars and movie
celebs globally
6. Reebok operates through a network of Department stores,
Sporting goods, Specialty retailers, Company-owned stores, Licensees
thus having a better reach.
7. Reebok sponsors international teams, clubs, players from all sports
like football, cricket, basketball, motorsport, etc.
8. Reebok’s parent company is the sports giant Adidas, which brings
stability to the company and a worldwide access and easy
distribution.
Weaknesses 1.The brand faces tough problem from fake and duplicate sales
2. Being a popular brand means any controversy affects brand image
considerably
3. The UFC deal damaged the reputation and the earned media of
the company
4.Not engaging enough with the kids and younger generation
Opportunities 1. Reebok can expand its kids section.
2. Lifestyle section can be expanded and can be given more focus.
3. More tie-ups with sports academies and schools worldwide
4. Win back the earned media by improving the UFC deal and trying
to engage with the fighters.
Threats 1. Competition by Chinese market can be perceived as a threat.
2. Fluctuating international currencies can mean losses to the
company.
SWOT Analysis
5. PEST ANALYSIS
Political 1. In India government allows overseas companies to establish their
businesses, which is advantageous situation for Reebok
2. in Q1 2012, the central government permitted 100% FDI in single
brand retail (with 30% goods sourced from Indian SME’s) which
means foreign sports shoe retailers can establishes shop more easily
in India.
Economic 1. GDP growth rate is estimated at %7.3 for the Financial year
2012/2013, up from %6.8 from the previous year
2. Inflation rate is fallen to %6.8 compared to 2012 when it was %8
3. A debt problem with Student Loans – USA has over $1.2 trillion in
student loans that needs to be paid back
4. US unemployment rate fell to %4.9 in January 2016 – the lowest
ever
5. U.S. factory orders fell in December of 2015 by the most in a year,
according to the Commerce Department.
6. Real U.S. GDP growth is slowing.
7. U.S. export growth has been weakening.
8. Corporate profits are declining.
Socio-
Cultural
1.The population is trying to become more healthy by exercising and
doing some kind of sport
As for 2016 the population of the USA is 323, 148, 026, (the third most
populated country in the world) with %81 living in the cities and the
suburbs.
Technological The online Retail Market is growing annually by %35
11. MEASURE OF SUCCESS
• WITH FIGHTERS VISITING THE REEBOK STORES, PREDICTIONS OF
SALES GROWTH ARE HUGELY POSSIBLE. ALSO AFTER REEBOK
ANNOUNCE THE NEW PAYMENT METHOD AND DESCRIBING THE
FIGHTER AS THEIR MOST IMPORTANT ASSET IN THIS SPONSORSHIP,
WILL INCREASE THE CHANCE OF WINNING BACK THE TRUST OF THE
FIGHTERS AND THEIR FAN BASE. THEREFORE, REEBOK WILL RECOVER
ITS REPUTATION AND THE EARNED MEDIA, WILL STABILES THE
COMPANY AND EVEN THOUGH WILL INVEST MORE IN THAT
SPONSORSHIP, THE SALES WILL GROW AS WELL LEAVING A WIN-WIN
SITUATION FOR EVERYONE
