American Home Product Analysis

618 Words3 Pages
Summarize critical issues. 1. In marketing area, New Balance sales are just third in the USA, and fall behind Nike and Adidas who bought Reebok that major competitors. New Balance does not undertake celebrity endorsement such as Nike and Adidas. So it is difficult to build its brand all over the world. 2. New Balance just has limited product line, but is provides more size to choose, such as different wide, so it has more SKUs for one product compare its major competitors. 3. In this industry, major competitors provide more fashion-oriented products for consumers. New Balance just prides on providing quality athletic shoes for the serious athlete. But the truth is the crowed tends to be from younger generation. New Balance is still the older crowed. 4. New Balance’s manufacturing cost is very high. Its major competitors outsource the most of their manufacturing to China. But New Balance on the other hand only outsources 75% of its U.S. volume while retaining the remaining 25% for final assembly in one of its five factories. Formulate new or modified strategic alternatives. 1. In marketing area, it needs to endorse by someone who younger consumers like or education consumers to follow the professional choice. New Balance will make endorse like a system, not just one or two stars, but also need a lot of stars to become a group. 2. It needs to provide more product lines for potential consumers. At the same time, New Balance will improve its SKUs management ability. A variety of product lines would attract different consumers, expand the company's sales, and catch up with the main competitors. If New Balance brand is not in the top, consumer will forget. 3. In design capabilities, New Balance needs to follow major competitors as soon as possible. Following the policy is an insurance policy. But New Balance needs to get out more R&D to design
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