Athletic Shoes Ranked by Sales - PowerPoint PPT Presentation

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Athletic Shoes Ranked by Sales

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  1. Company 1997 1996 Nike 3,585 3,261 Reebok 1,229 1,192 Fila 488 555 Adidas 468 385 Converse 285 194 New Balance 265 200 Company 1997 1996 K-Swiss 92 76 LA Gear 70 136 Puma 23 35 Ryka 14 10.2 Kaepa 8 11 Ellesse 5 7 Athletic Shoes Ranked by Sales Nike is 250 times bigger than Ryka

  2. Ryka vs.Nike Cost Comparisons

  3. Source of Competitive Advantage Cost Uniqueness Cost Leadership Broad Target Market Different. Breadth of Competitive Scope Focused Different. Focused Low Cost Narrow Target Market

  4. Source of Competitive Advantage Cost Uniqueness Cost Leadership Broad Target Market Different. Breadth of Competitive Scope Focused Different. Focused Low Cost Narrow Target Market

  5. Strategic Group Map Ryka Dimension Y Reebok Nike Dimension Z Dimension X

  6. Analysis of the Competitive Environment Threat of New Entrants Threat of New Entrants Rivalry Among Competing Firms in Industry Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products

  7. Ryka …Key Issues • Definition of industry? • Favorable environmental trends? • Has Ryka developed intangible resources? • How important is marketing? • Is Ryka successful? • What should Ryka do?

  8. Ryka Recently... • Intros new cushioning technology in running shoes -- Consumer Reports “Best” rating • Award employees one share stock per pair shoes sold @ $0.92/share (Feb. 96) • Alliance with Lady Footlocker (mid-96) • Karl Malone gets seat on Ryka’s board (Jan. 97) • Ryka and KPR Sports reorganized into Global Sports, Inc. (GSPT) (Dec. 97); new CEO & TMT • Sole worldwide sponsor, Jazzercise • Ryka posted 2.7% loss for 1997