Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 15 pages
Data source: Published sources
Abstract
In 2004, New Balance Athletic Shoe Inc was the third-largest athletic shoe manufacturer in the US. With its unique set of philosophies that included an 'endorsed by no one' stand, retention of 25% manufacturing in the US, and a middle-aged customer segment as its primary target customers, the company was the only company to grow during the stagnated shoe industry in the mid- 1990s. Despite huge advertising expenses and celebrity endorsements from the major players such as Nike, Reebok and Adidas, the company grew and gained market share in the highly competitive athletic shoe industry. This case discusses: (1) the survival and growth strategies adopted by New Balance; (2) the state of the US athletic shoe industry; and (3) the future outlook of New Balance.
About
Abstract
In 2004, New Balance Athletic Shoe Inc was the third-largest athletic shoe manufacturer in the US. With its unique set of philosophies that included an 'endorsed by no one' stand, retention of 25% manufacturing in the US, and a middle-aged customer segment as its primary target customers, the company was the only company to grow during the stagnated shoe industry in the mid- 1990s. Despite huge advertising expenses and celebrity endorsements from the major players such as Nike, Reebok and Adidas, the company grew and gained market share in the highly competitive athletic shoe industry. This case discusses: (1) the survival and growth strategies adopted by New Balance; (2) the state of the US athletic shoe industry; and (3) the future outlook of New Balance.