Athletic Shoes Ranked by Sales Company19971996 Nike3,5853,261 Reebok1,2291,192 Fila 488 555 Adidas 468 385 Converse 285 194 New Balance 265 200 Company1997.

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Presentation transcript:

Athletic Shoes Ranked by Sales Company Nike3,5853,261 Reebok1,2291,192 Fila Adidas Converse New Balance Company K-Swiss LA Gear Puma Ryka Kaepa 8 11 Ellesse 5 7 Nike is 250 times bigger than Ryka

Ryka vs.Nike Cost Comparisons

Breadth of Competitive Scope Source of Competitive Advantage BroadTargetMarket NarrowTargetMarket Cost CostLeadershipCostLeadership Different.Different. Focused Different. Focused Low Cost Uniqueness

Breadth of Competitive Scope Source of Competitive Advantage BroadTargetMarket NarrowTargetMarket Cost CostLeadershipCostLeadership Different. Focused Different. Focused Low Cost Uniqueness

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

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

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

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