Reebok and its future growth: what strategies are needed for Reebok's success.

Essay by NosherwanUniversity, Master'sB-, October 2006

download word file, 51 pages 3.8

Executive Summary

Paul Fireman, Chairman, President, and Chief Executive Officer (CEO) of Reebok, spelled out the company's situation in his letter to the shareholders in the 1997 Annual Report. I am not going to spend a lot of time telling you what went up, down or sideways in 1997. Despite difficult market conditions, we improve our earning per share but fell short of our financial goals for the year. I'd like to talk with you about shifting consumer preferences. I'd like to share with you our multiple-brand strategy for achieving growth across a variety of market segments. Every ten years or so, consumers get bored with the status quo. People change, fashions change, sports trends change. Without much warning, a fundamental market shift occurs. Throughout the past decade basketball shoes and big-name sports stars have dominated the industry. Reebok has built a diversified portfolio of footwear, apparel, and lifestyle brands that we think will allow us to capitalize on the opportunity.

Nike has increased its market share while Reebok has decreased market share in previous half decade. Thus it was the first company to market an athletic shoe just for women. Reebok fifty percent revenue generate through international business. Pervious one year company increases its revenues three percent. Company financial positions are very strong as his current ratio is more than double its current liabilities. Change in net income not constant because of currency fluctuation and many other factors. Company per share income increase (earning per share), that show company net profit increased every year. One problem that company administration and selling expenses are very high and increase in previous years but decrease in that year. Because of many trade Policies Company's all products lines affected. Change in dollar also adversely affects the company profits. Company needs new suppliers and...