Strategic Management Case Study on Reebok

Running head: STRATEGIC MANAGEMENT
Strategic management
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Table of contents
Part 1................................................................................................................................................2
Introduction and relevant details of case study................................................................................2
Part 2................................................................................................................................................7
Detail analysis of the case................................................................................................................7
Part 3..............................................................................................................................................16
Key learning and recommendations..............................................................................................16
Reference list and bibliography.....................................................................................................21

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Part 1
Introduction and relevant details of case study
Strategic management process can be considered as the important management technique
adopted by the organizations for ensuring the positive growth for the future (Ansoff et al., 2018).
Based on the creation of vision as well as developing the long term operational strategies in the
strategic management initiative of an organization can significantly drive the long turn benefit
through proper utilization of resources. Reebok is a popular international brand that has
established its strong image in the global market introducing sports and lifestyle products
(Reebok.com.au, 2019). In the middle of the 90th century, the company has started contributing
to the GDP of the Australian economy. As stated by Moutinho and Vargas-Sanchez (2018), in
the initial stage, fitness was the negligible topic for people. Only for the comfort and fashion, the
sports products have been introduced in the market. Following the decent market segment,
Reebok has established its strong image in the market. It cannot be denied that over the last few
years, Reebok has become a leading sports brand that has significantly supported the local
business groups.
As stated by Noe et al., (2017) Sports and Apparel industry is being considered as the
extremely diverse industry where the involvement of different segments of people, as well as
health fitness, intercollegiate athletes, professional sport and recreational sport management
related departments, are available. It is true that the Global Sports industry is currently facing
Rapid growth in different segments (Moutinho & Vargas-Sanchez, 2018). However, with the
increasing growth opportunities in the market management issue has become a major concern for
the companies. Analyzing the sudden fall in Reebok, it has been identified that the revenue of the

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company has suddenly got decreased by 26% in the global market. The Weak performance of the
company has misbalanced the ratio of return on investment. Due to commercial regulation as
well as restructuring charges, the company has dealt with various commercial challenges. In the
current business scenario, public relationship management is being considered as an important
strategic component that significantly influences the business profitability (Ginter, Duncan &
Swayne, 2018). Analyzing the changing consuming trends of the customers, it has been
identified that different media channels have significantly impacted on Australian sports sector.
In the case of Reebok, it has been identified that due to misleading as well as a false
representation of the production, Reebok Australia has paid the penalty of $350,000
(Accc.gov.au, 2019). The complaint against the company aroused for sharing the false benefits
information of the products. In the promotion of Reebok, it has been mentioned that the Reebok
shoes can help to increase the muscle tone and strength more compared to the traditional
working shoed. However, the actual product was different from the product, which has been
introduced through promotion. Consequently contravening the Australian Consumer Law, the
company has faced several complaints. Therefore, it can be said that improper public relation can
be considered as an important strategic failure faced by Reebok.
It has also been identified that in the market, increasing numbers of sports outlets, it has become
challenging for the customers to choose the right one. Analyzing the recent purchasing rights of
Reebok customers, it has been identified that it has been highly criticized by the people. It has
also been identified that increasing numbers of outlet can be considered as another issue that has
influenced the customer reaching process.
In the competitive business environment, establishing a strong position in the market, the
strategic direction of the company can play a significant role. However, in case of reebok it has

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been identified that rather than following the modern business approach, the company has
focused on following the traditional business approach, which has significantly impacted on the
strategic direction of the company. Analyzing the market, it has been identified that due to some
product characteristics, the performance quality of the company has got decreased. In between
the year 2011 to 2013, Reebok has refunded $35 against per pair of Easy Tone Shoes
(Accc.gov.au, 2019). On the other hand, it has also been identified that Reebok shoes have not
been appreciated by the customers due to their old model. It cannot be ignored that increasing
numbers of outlets as well as a competitive business environment in the sports sector, marketing
and promotion has brought the significant impact on the influencing the sales rate of the
company.
In some of the cases, it has been identified that due to availability of money in the
different field maintaining the integrity in sports and apparel sector has become an important
concern for the management authority of Reebok (Schmid et al., 2018). The Australian sports
industry is being considered as the extremely diverse industry where the involvement of different
segments of people, as well as health fitness, intercollegiate athletes, professional sport,
recreational sport management related departments, are available. It is true that the Australian
Sports and apparel industry is currently facing rapid growth in different segments. However,
with the increasing growth opportunities in the market management issue has become a major
concern for the Reebok.
In this situation, avoiding the negative reputation of the company in the Australian sports
sector, the company has developed various strategies for developing public relations. Reebok
Australia has introduced the 24hrs of the customer support team
(Economictimes.indiatimes.com, 2019). On the other hand, developing its strong image in the

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market, the company has decided to strengthen its brand image through the women
empowerment initiatives. It has also been identified that due to ignorance of the requirement of
the customer segment as well as a poor treatment towards the high valued customers have
increased the customer dissatisfaction in the industry. It can be said that improving the customer
relationship management system has become necessary for introducing an effective promotional
strategy through digital media platforms.
Introduction of sports news through television, as well as newspapers, had significantly
impacted on the customer relationship management process. However, in the current scenario,
due to the availability of digital platforms in the sports sector, it has dragged the consumers from
old platforms (Schmid et a., 2018). Due to the high digital presence in the market, the core
product adding system has got influenced in the sector. On the other hand, it is true that although
the availability of digital platforms has got increased in the sports sector, however, it is also true
that lack of understanding regarding the basic necessities of the consumers, the sports industry is
dealing with the trouble. On the other hand, using different mobile apps, the accessibility of the
customers has got increased, which is negatively impacting on the business revenue in the sports
industry (Schoombee & Bick, 2018). It has also been identified that in promotional areas, the
standard commercial model is being used, that reflects the offset future of the Australian sports
industry. Reckless customer demands, as well as decreasing interest towards the core product
offering process, has made the Australian sports industry is an unstable position.