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Reebok Company Analysis

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Reebok Company Analysis

Innovation and creativity are necessary to remain outstanding and adaptive in the ever-

changing society composed of competition. Most brands have remained relevant and competitive

through innovation and creativity, serving numerous generations. Reebok has been one of the

leading brands in producing athletics footwear and apparel since 1958. However, the company

was acquired by the Adidas Group in 2005, resulting in numerous changes aimed at restructuring

its business model and products. Despite the venture and focus by Reebok to provide athletic

footwear and apparel, other brands like Nike have appeared to venture into the industry, creating

healthy competition. Due to the growing competition in the capitalistic global market, Reebok as

a brand has to focus on embracing diversity, focusing on sustainability and improving its

customer engagements to ensure customer retention. Therefore, Reebok needs to analyze the

strategies that can be used and help ensure that the brand remains relevant and competitive in this

dynamic market.

Corporate Change and Development

Technological advancement has played a critical role in ensuring that there is a

restructuring of the process through which businesses are conducted through the enhancement of

communication. Through the use of online platforms and in-store shopping experiences, Reebok

can restructure and ensure they embrace diversity by offering personalized products, which will

help meet the customers' specifications (Yin, 2022). Thus, the company is likely to endure some

increment in the rates of returning clients and an improvement in reputation and profitability due

to positivity in word of mouth.

Technological advancement is inevitable, and there is a need for each company to

reconsider understanding the impacts of technology on the customer's choices and preferences.
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Reebok, as a brand, should consider investing in technology, which will help ensure that there is

value addition through leveraging technology to ensure that there is enhancement of the products

and services they provide (Yin, 2022). Thus, data analytics and artificial intelligence should be

considered instrumental in ensuring an understanding of the needs and preferences of the

customers. Additionally, Reebok can embrace a diverse and inclusivity culture that is useful in

promoting creativity and innovation (Hartoko et al., 2021). Thus, Reebok will be able to enhance

attraction to high-level clients across the globe, which will help ensure an improvement in the

profitability and the workforce within the company.

SWOT Analysis

Strengths

In a capitalistic market, competition is one of the major concerns that has been useful in

ensuring there is creativity and innovation to serve the interests and needs of the customers. The

athletic apparel industry is very competitive (Väyrynen, 2019). Reebok, as a brand, has played a

crucial role in ensuring that it can maximize its strengths and remain relevant in the market.

Reebok has remained outstanding in the market due to the enhancement of innovation and

emphasis on the use of technology which aids in the design and development of products. Thus,

the company has prioritized the customers' needs and ensured that all the products are improved

to meet the customers' desires and expectations. Additionally, Reebok has created an emphasis

and invested more in the distribution network. Thus, the athletic apparel by Reebok is distributed

across 170 countries, which has given global brand recognition for its role towards

revolutionizing sports (Väyrynen, 2019). It is worth noting that the acquisition of Reebok by

Adidas is one of the key strengths that has boosted its global recognition by providing all the

resources and support needed to gain global recognition.

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Weaknesses

Smaller sportswear brands are facing the challenge of limitations on production, making

it hard for them to compete with larger and more popular brands with greater financial muscles.

Reebok is one of the smaller companies in the production of athletic apparel, making it hard for

the brand to compete in the market with other larger companies like Nike due to its inability to

establish a broad customer base (Väyrynen, 2019). Therefore, smaller companies must rely on

influencers, especially sportsmen and women, to market their products and apparel. Despite the

high cost of investments in influencers, the profit margins are not assured, and this has greatly

affected the performance of most small companies that rely on celebrities to promote their

products.

Opportunities

The dynamism of the business environment has necessitated the need for companies to

consider evaluating their strategies and establishing emerging trends that can help to outshine the

competitors and promote healthy competition. Thus, Reebok is popularly known for its

production of athletic apparel, diversification of its products and focus on other categories, such

as the production of lifestyle products and fashion appears to be a very useful niche that can help

boost its growth (Dali, 2021). Through diversification, Reebok will be able to gain popularity

due to the great demand for eco-friendly products to enhance social responsibility. Lastly,

Reebok should consider its popularity within the upcoming markets of Africa and Asia. Initially,

Africa and Asia were considered to be developing, and their priorities were on food production,

but recently there have been some changes, and there is untapped demand for athletic apparel

and fashion (Dali, 2021). Nevertheless, Rebook needs to develop some proper planning and
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research before entering into the Asian and African markets due to cultural variations and beliefs

that are very much rampant in these two regions.

Threats

There is constant evolution in the production of fashion and athletic apparel, which has

resulted in the establishment of competition, which tends to disadvantage large-scale and small-

scale producers. However, healthy competition is very useful in boosting creativity and

innovation to remain relevant in production and develop a broader customer base (Dali, 2021). It

is worth noting that competition tends to affect small-scale producers such as Reebok due to their

inability to have sufficient resources; hence, Reebok cannot conduct better marketing strategies.

With poor marketing, the products are likely to have low levels of popularity, which gives larger

companies an advantage in ensuring that their goods can gain popularity globally (Dali, 2021).

Thus, Reebok is forced to exercise high levels of creativity and ensure that it can establish a

niche to ensure that they remain unique in the market.

Demographic and Market Factors

Change is inevitable, and Reebok is not immune to embracing changes due to its impacts

in ensuring that the brand can endure some growth and increase profit margins. Consumer

interests are very instrumental in the process of ensuring that there is sustainability and

enhancement in the production of eco-friendly products that meet market demands (Wright,

2019). In the recent past, embracing consumer interests has become very popular. Most

consumers are considering supporting brands that are conscious about the environment in their

entire process of production. Thus, Reebok can consider capitalizing on the production process

where they can consider the use of eco-friendly methods that can yield towards supporting the

increasing competition. Additionally, there is a notable increase in the youth's demand for
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athleisure and lifestyle products (Wright, 2019). Capitalizing on the youths can be very useful

due to the trend where they tend to value comfort and style to remain outstanding.

Impact and interest

The markets for athletics apparel are slowly increasing, with Asia and Africa becoming

hubs that have not been exploited. Venturing into the emerging markets will be instrumental for

Reebok due to the presence of growing middle-class society who have ahigh levels of purchasing

power to ensure that they remain outstanding and fashionable (Wright, 2019). Therefore, Reebok

will be able to tap the latest revenue streams, boosting the customer base. Additionally, Reebok

can consider embracing technology and establishing an e-commerce platform (Koziello, 2020).

Through e-commerce, Reebok will be able to have all its apparel supplied across the globe,

making it easier for customers to order all their products in different parts of the globe and have

them delivered to their preferred locations.

The uniqueness of products is very useful towards ensuring that the brand remains

relevant and it becomes easy for the customers to differentiate the different brands. Due to the

rising competition in the production of athletic apparel, Reebok should consider using high levels

of innovation and creativity that will help enable them to get some differentiation from the other

competing brands (Koziello, 2020). Through innovation and creativity, Reebok's apparel will

remain outstanding, and this will help in popularizing the products. Therefore, Reebok will have

to leverage its expertise in technology and innovation, which will be useful in ensuring products

are produced that meet the customers' evolving needs.

Product pricing is critical in the process of popularizing goods in the market. Thus,

pricing tends to affect the company's competitive nature with the other brands in the market

(Koziello, 2020). To ensure that Reebok remains relevant in the market, it is necessary to
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consider restructuring the pricing and ensure that all their products are of relatively low prices

that are competitive and favorable in the market with proportionality on the quality of the

product. Therefore, there should be consideration of all the pricing to ensure that high-end

customers can receive flexible rates, which will help develop a broader base for the customers.

Employees are very critical in the process of enhancing the success of the company.

Reebok should consider establishing a supportive working environment where employee efforts

are recognized and rewarded. Through the rewards, employees will remain motivated, which will

help ensure that creativity and innovation are enhanced (So, 2022). Thus, Reebok should fund

the training and workshop of the employees, which will help ensure that employees can receive

skills and knowledge. Additionally, motivated employees will be able to ensure proper marketing

strategies where they act as brand ambassadors for Reebok (So, 2022). Through social media, the

employees can help boost their reach by providing reviews and increasing their social media

reach.

In conclusion, capitalism in the dynamic business world has created competition for

small-scale companies such as Reebok, making it difficult for them to endure growth. The

growing competition has created changes in the preferences and choices of the customer.

However, through the use of a customer-centric approach, Reebok can remain relevant in the

production of athletic apparel, and this can help in ensuring that the company's popularity and

profit margins increase.

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References

Dali, I. Z. (2021). Technology Entrepreneurship Project (ENT 600): Reebok.

Hartoko, G., Noviyanti, E. S., Saleh, M., Fatari, F., Hidayat, A., & Bahits, A. (2021). Analysis of

Work Discipline and Work Competence on Employee Performance at PT. Parkland World

Indonesia. BINA BANGSA INTERNATIONAL JOURNAL OF BUSINESS AND

MANAGEMENT, 1(2), 137-143.

Koziello, W. (2020). A Study of Key Success Factors for Enterprises. Analysis of selected

companies. IOSR Journal of Business and Management (IOSR-JBM), 22(3), 55-59.

So, H. Y. (2022). Potential Analysis of International Development for Chinese Sportwear

Companies. In 2022 7th International Conference on Social Sciences and Economic

Development (ICSSED 2022) (pp. 2089-2094). Atlantis Press.

Väyrynen, I. (2019). What are the different approaches that global companies have towards local

marketing in the Nordic region and their driving forces? Case study of Reebok and

Beiersdorf.

Wright, M. (2019). Strategic audit of Adidas.

Yin, J. (2022). Research on Problems and Optimization Strategies in Reebok’s Development

Model. Highlights in Business, Economics and Management, 4, 547-551.