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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

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athletic shoes ranked by sales
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

slide3

Source of Competitive Advantage

Cost

Uniqueness

Cost

Leadership

Broad

Target

Market

Different.

Breadth of Competitive Scope

Focused Different.

Focused Low Cost

Narrow

Target

Market

slide4

Source of Competitive Advantage

Cost

Uniqueness

Cost

Leadership

Broad

Target

Market

Different.

Breadth of Competitive Scope

Focused Different.

Focused Low Cost

Narrow

Target

Market

strategic group map
Strategic Group Map

Ryka

Dimension Y

Reebok

Nike

Dimension Z

Dimension X

slide6

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

ryka key issues
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?
ryka recently
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