A Case Study of Reebok International, Ltd

...

c. Market Share and Competition

Exhibit 9: Market Share of the U.S. Athletic Footwear Market

Source: Sports Trend Info, Business Wire, April 7, 2000

Manufacturer

Share in 2000

Manufacturer

Share in 1999

Nike

39.20%

Nike

48.90%

Adidas

15.10%

Adidas

16.90%

Reebok

10.90%

Reebok

10.90%

New Balance

9.40%

New Balance

3.70%

K-Swiss

3.60%

K-Swiss

3.10%

Timberland

2.90%

Timberland

2.10%

Asics

2.10%

Asics

1.50%

Saucony

1.40%

Lugz

1.40%

Skechers

1.40%

And 1

0.90%

And1

1.20%

Saucony

0.90%

Source: Sports Trend Info, Business Wire, April 7, 2000.

Exhibit 9 shows the market share for the first quarter of 2000 versus the first quarter of 1999. The major shift was in the sales of Nike, which had its market share decrease from 48.9% in 1999 to 39.2% in 2000. New Balance, which was in 4th place, had its market share increase from 3.7% in 1999 to 9.4% in 2000.

B. STRATEGIC POSTURE

1. OBJECTIVE

- To establish a result-oriented culture

- To strengthen management team

- To contemporize products

- To create relevant advertising and effective retail & consumer marketing campaigns

- To grow market share

2. MISSION/VISION

“To grow quality market share for all our brands and to generate long-term improvement in the value we create for our shareholders; to continue to bring inspiration to present and future athletes, while maintaining the company's standard of quality for its products.”

3. BUSINESS POLICIES & PRACTICES

“We believe that the incorporation of internationally recognized human rights standards into our business practice improves worker morale and results in higher quality products”

– Reebok Human Rights Production Standards

- Safe and Healthy Work Environment

- No to Forced or Compulsory Labor

- No Working hours/ Overtime

- Freedom of Association

- Nondiscrimination

- Child Labor

- Fair Wages

4. STRATEGIES

- Advertisements

- Sports Ventures

- Endorsements

- Sponsorship

- Retail stores

- E-commerce

- Marketing Mix

- Acquisitions/ Merging

- STRATEGIC MANAGERS

Reebok International’s strategic managers consist of the Board of Directors and top management. The Board of Directors is obligated to approve all decisions that affect the long-run performance of the corporation while the Top management is responsible for the implementation of corporate goals and objectives.

- BOARD OF DIRECTORS

The Board of Directors of Reebok International, Ltd, as of December 31, 2001:

Name Company

Paul B. Fireman Chairman, President, Chief Operating Officer & CEO

Reebok International, Ltd.

Norman Axelrod Chairman of the Board and CEO

Linen & Things, Inc.

Paul R. Duncan Retired Executive Vice President

Reebok International, Ltd.

Mannie L. Jackson Chairman of the Board & CEO

Harlem Globetrotters International, Inc

Richard G. Lesser Senior Corporate Advisor and Director

TJX Companies, Inc.

Joy Margolis President & CEO, Reebok International, Ltd.

Geoffrey Nune Retired Senior VP & General Counsel

Millipore Corporation

David L. Patrick Executive VP & General

...