SWOT Analysis of Reebok
...rent points in its history. • Reebok has too many “technologies.” The frequency of the introduction of these new technologies has desensitized Reebok’s customers to their advantages. • Reebok’s short-lived ad campaigns do not paint a clear picture of what direction the company is headed. Consumers have no image with which to identify and become confused. Opportunities • Reebok can take advantage of the upward trend toward health consciousness in American society. This trend will expand Reebok’s market. • Reebok has room in the market to increase its prices. Its much lower prices than Nike have given the company a “cheap” image in the eyes of many consumers. • Reebok can exploit the rising alternative-sport market. The recent popularity explosion of snowboarding, rollerblading, etc. shows potential in the new market. • The portfolio of professional teams and athletes at Reebok is inferior to Nike’s collection of “proven winners.” Signing high-profile teams and athletes can elevate the brand image of Reebok. Threats • Nike is in command of the athletic shoe market. Reebok is a distant second in most athletic shoe segments. • Because much of Reebok’s production capabilities are overseas, the company is subject to foreign politics and trade practices that are out of its control. • The athletic shoe market is mature and saturated. Reebok will have to fight for every share of the market it can get. • The trend in athletic shoes is toward function and fashion. Reebok must work on both fronts to be successful in the new market. Positioning The primary problem Reebok faces is one of positioning. This is directly related to its target markets, which are misaligned with the focus targets of the athletic shoe market. Figure 1 shows that Reebok’s strengths in age segments lie where Nike, its largest competitor, is the weakest. While Nike dominates the 12- to 34-year old segments, Reebok is strongest in the 35+ segments. However, Figure 2 shows that the three segments controlled by Nike are the three highest-spending segments in the market (at averages of $53, $51, and $43 per pair), while the three in which Reebok is strongest spend the least, an average of $40.6...