Reebok Strategic Audit
...to increase the long-distance track runner's performance. In 1979, Paul Fireman bought the rights to market and distribute the products in the US and Reebok USA was formed. Reebok USA eventually merged with Reebok International and today Reebok International is a very diversified operation with distribution worldwide. Through the acquisition of several footwear and apparel makers, the company now consists of four strategic business units: Reebok Division, Rockport Company, Ralph Lauren Footwear, and the Greg Norman Division.
Today, the Reebok focus on developing and strengthening their brands. The aim is to maximize consumer impact and enhance brand profitability through five strategic approaches: matching structure to the consumer; extending design and innovation leadership; developing leading positions in all major markets; achieving excellence in execution; and focusing on financial performance (Adidas Group Strategy, 2007).
There are many factors that affect the manufacturing and financial performance of Reebok. Either separately or combined in one way or another could cause a shift in market share thus impacting the corporation, its shareholders, and its stakeholders.
The biggest external factor plaguing Reebok is the economy. Any increase or decrease of variables such as interest rates, money supply, inflation, unemployment, production levels, or import levels all serve to determine the amount of disposable income available for buying sports footwear or apparel. When interest rates are high or there is an unusually high unemployment rate, there is generally less disposable income for the consumer to spend, thus sales and profits could be lower than expected. Since Reebok products are marketed worldwide, it may be possible for one part of the world where the economy is good to make up for the losses in another part of world where there is...
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