Problems When analyzing the case of New Balance Athletic Shoe, Inc. it is clear that there are some major problems that the company is facing. First of all, in the marketing sector New Balance remains behind other major competitors Nike, Adidas and Reebok. Unlike its competitors, New Balance does not accept celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This causes the company to lose some visibility on a global scale as it lacks sponsorships in major sporting events. Most global brands generate strong brand recognition through celebrity endorsements in sporting events which would give them the impetus to further take their brand into the global market. A second problem New Balance faces is its limited product line. New Balance prides itself on providing quality athletic shoes for the serious athlete. However, the market has shifted to not only include serious athletes, but now also caters to the more fashion-oriented audience. This crowd tends to belong to the younger generation, the part of the population that New Balance has not focused on thus far. New Balance has been geared toward older audiences, which has severely limited the company in its ability to expand into new product areas and remain competitive in the changing marketplace. Another problem that New Balance has faced is production costs. With its competitors outsourcing most of their manufacturing to other countries such as China, Nike, Adidas, and Reebok have been able to significantly reduce manufacturing costs. New Balance, on the other hand, outsources only 75% of its volume to the United States, while retaining the remaining 25% for final assembly at one of its five factories. Strategies In addressing New Balance's weakness in the area of marketing, it would be beneficial for the company to find a celebrity to endorse their product line. New Balance has always been against celebrity endorsements that emphasize fashion trends and influence potential customers more based on popular personalities than performance and functionality. This has severely limited the company's ability to achieve the same kind of global awareness as its competitors. New Balance should find a serious but well-known athlete who adheres to the same ideals as the company, to support their brand. This will create the kind of brand recognition they need to stay competitive.
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