Factors Affecting Competition & Success in the Athletic Footwear of the Footwear Industry in the United States (2007)

The footwear industry has been growing, and it will continue to grow. The footwear industry had sales revenue of 159.6 billion in 2005. In the footwear industry, there are three major players: Nike, Adidas, and New Balance. Nike is the number one leader; Adidas is in a second position in the market, and New Balance is just behind Adidas. Nike and New Balance are the U.S. manufacturers. On the other hand, Adidas is a German company. Recently, Adidas bought Reebok for 3.8 billion dollars and it is going to compete with Nike. It wants to snatch the market shares away from Nike by making the decision to acquire Reebok, so Adidas would have more sales in the US.

The history of the athletic footwear industry dates back in the 18^th century when people wore lightweight canvas shoes with rubber soles called plimsolls. Back then, the plimsolls were not comfortable, and there were no differentiation between the right and the left foot. Not until the modern Olympics came into view in 1896, U.S. Rubber Company produced Ked in 1917 that were more comfortable rubber sneakers. The name “sneakers” was named because they were so quiet that a person could sneak up to someone without making a noise when wearing them. Keds were the first sneakers made. Today, many people wear sneakers, even when they are not playing sports because athletic shoes are comfortable.

Based on the market shares globally from 1998 to 2003, Nike market shares were decreasing. Even though Nike has the highest sales, Adidas and Reebok combined would have as much sales as Nike. Surprisingly, New Balance revenue has been growing substantially over the past several years. In 1998, the company sales were 630 million, and they climbed up to 1.54 billion worldwide in 20 The footwear industry is ruthlessly competing. In order for the athletic footwear companies to be successful and stay competitive, they need to have effective strategies to stay ahead of the game. Some strategies include marketing, sales, technology innovation, and product differentiation. There are some factors that could affect the companies such as their weaknesses and threats. The athletic footwear companies need to be technologically innovative since consumers today demand more new high-tech products and lean more towards fashionable trends.

16,000 words – 90 pages in length
Excellent use of literature
Excellent in depth analysis
Ideal for marketing students
Outstanding piece of work

INTRODUCTION
Background
Purpose of the study
Significance of the study
Assumptions
Limitations
Delimitations

LITERATURE REVIEW
History of Sneakers
Nike History
Adidas History
New Balance History
Footwear Industry Growth
Nike Product Lines
Adidas product lines
New Balance Product Lines
Current State
Competitive landscape
Nike looking for acquisition
Adidas AG acquired Reebok
New Balance current state
Nike Opportunities
Adidas Opportunities
New Balance Opportunities
Nike Threats
Adidas Threats
New Balance Threats

METHODOLOGY
Data Analysis
Global Footwear Market Segmentation
Sales of Athletic Footwear
Nike
Adidas
New Balance
Nike Strengths
Nike Weaknesses
Adidas Strengths
Adidas Weaknesses
New Balance Strengths
New Balance Weaknesses
Nike Strategies
Nike outsourcing strategy
Marketing strategies
Sales strategy
Technology innovative strategies
Adidas Strategies
Industry leader strategy
Acquisition and partnership strategies
Marketing strategies
Technology innovative strategies
New Balance Strategies
Product differentiations
Outsourcing strategy
Marketing strategies
Acquisition strategies
New Balance technology strategies
Health & Fitness Trends
Fashions for Growth

CONCLUSION AND RECOMMENDATIONS
Conclusion
Recommended Solutions/Predictions

REFERENCES

APPENDICES

LISTS OF TABLES
Table 1: Global Athletic Footwear Market Shares
Table 2: Global Athletic Footwear Sales
Table 3: Nike Key Financial
Table 4: Nike Sales in Different Geography
Table 5: Nike Five Years Overview
Table 6: Adidas Key Financial
Table 7: Percentage of Sales in Different Segments
Table 8: Adidas Five Years Overview
Table 9: Adidas Net Sales: 2005-2006
Table 10: New Balance Key Financial
Table 11: New Balance Annual Sales
Table 12: Nike Income Statement
Table 13: Nike Balance Sheet
Table 14: Nike Cash Flow
Table 15: Adidas Consolidated Income Statement
Table 16: Adidas Consolidated Balance Sheet
Table 17: Adidas Financial Highlights: Five-Year Overview
Table 18: New Balance Fit-form System

LIST OF ILLUSTRATIONS
Figure 1: Total Revenues in Footwear Industry
Figure 2: Market Segmentation of Footwear Industry, 2005
Figure 3: U.S. Athletic Shoe Market in 2003
Figure 4: Global Footwear Market Share
Figure 5: Athletic Footwear Market Sales: 1998-2003
Figure 6: Celebrity Endorsements
Figure 7: How Nike+ iPod Sport Kit Works
Figure 8: Customized Nike Shox Shoe
Figure 9: Personalized the Nike Shox
Figure 10: System Components & Benefits

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