Reebok's Business Strategy: Achieving Long-Term Success

This report provides an in-depth analysis of Reebok's business strategies aimed at achieving long-term success. It includes a situational analysis using PESTLE to scan the macroeconomic environment and Porter's Five Forces to assess the industry. The internal analysis covers organizational culture, marketing strategy implementation using the 7Ps, TQM, and celebrity endorsements. The report also evaluates financial performance through EPS growth, ROAE, credit rating, image rating, stock price, and the balanced scorecard. Furthermore, it addresses corporate social responsibility and offers recommendations for future strategies, including developing new plants and machinery, targeting middle-class markets in various regions, and maintaining product quality. The global athletic footwear market's potential growth to over $114.8 billion by 2022 underscores the importance of these strategic considerations. The report concludes by highlighting the need for continuous innovation, effective marketing, and adherence to legal and environmental standards to sustain Reebok's competitive advantage.

Running head: BUSINESS STRATEGY
Business strategy
Name of student
Name of University
Author note
Table of Contents

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BUSINESS STRATEGY
Introduction......................................................................................................................................3
Vision and Mission Statements plus Corporate Objectives.............................................................4
Situational Analysis.........................................................................................................................5
Macroeconomic Analysis – environmental scanning..................................................................5
Industry and Sector Analysis.......................................................................................................8
Internal Analysis..............................................................................................................................9
Task Culture...........................................................................................................................10
Person Culture........................................................................................................................10
Role culture............................................................................................................................10
Implementation of the Marketing Strategy....................................................................................13
7Ps strategy of Rebook..............................................................................................................14
TQM...........................................................................................................................................16
Celebrity endorsements..............................................................................................................16
Performance analysis: financing of company operations..............................................................16
EPS Growth Rate:......................................................................................................................16
ROAE:........................................................................................................................................16
Credit rating:..............................................................................................................................17
Image rating:..............................................................................................................................17
Stock price:................................................................................................................................17
Balance scorecard:.....................................................................................................................17

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Corporate Social Responsibility and Citizenship..........................................................................17
Recommendations for Future Strategy..........................................................................................18

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Introduction
The individual reflective strategy report is presented to focus on the business strategies
that are implemented by Rebook to gain long-term success in business. To do so, I recommend
development of new plants and machineries with the availability of enough budget for keeping
the good quality of products consistent and at the same time, target the middle class market
segments in areas of North America, Asia Pacific regions, Africa and Latin America regions too.
It is important to check the various strategies that can be implemented for conducting the
situational analysis and even analyse the internal business operations and other aspects of the
company in United Kingdom (Crane and Matten 2016). It is also important to check the
feasibility of various strategic decisions made and ensure that the best results are obtained within
no time. The performance analysis will be done by assessing the financial measures undertaken
to manage the business operations and processes while the corporate social responsibility
techniques allowed for remaining socially responsible and committed to the benefits of the
community (reebok.com 2018).
The global athletics foot ware market should grow and achieve the target of more than
$114.8 billion within the year 2022. The footwear market is quite attractive and covers a huge
percent of the market share. The products of Nike are designed for people who are mainly
engaged with sports and other outdoor activities. The volume of consumption of foot ware
products shows significant trend within the industry and people of different ages from all over
UK have considered this fashion and casual foot ware effective for the fulfillment of their needs
and requirements (Pagani 2013). This market is quite competitive and so to enhance the brand
name and image, Rebook has made huge investments in marketing channels to enhance the

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brand’s market presence and attract consumers. There are competitors as well along with
environmental issue that may be generated due to the utilization of synthetic rubber and raw
materials, which can be major challenges for the global foot ware market too (Iacob, Quartel and
Jonkers 2012).
Vision and Mission Statements plus Corporate Objectives
The vision of Rebook is to provide the professional sports persons and young individuals
who are engaged in sports activities with good quality shoes and accessories. The vision also
stands for delivering them what they need to perform to their potential in sports. It is also the
responsibility of the company to make the consumers achieve greatest heights by using the shoes
delivered to them, which they previously thought were difficult to achieve (Wang and Verma
2012).
The mission is to challenge and lead through innovation and creativity. It is the
company’s mission to develop good quality products and implement effective marketing
techniques for improving the potential of the brand and challenge conventions by making people
reach their potential to perform (Eva et al. 2014).
The major corporate aims and objectives are:
 Most important corporate objective is to dominate the various foot ware market segments
present in North America, Asia Pacific and Latin America.
 To predict the outcomes and establish a proper culture for strengthening the management
team efficiency
 To enhance visibility of the products and services delivered through effective
advertisements and consumer retail market campaigns

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 The company’s major objective is also to enhance the quality market share and contribute
to the growth in economy of UK
Situational Analysis
Macroeconomic Analysis – environmental scanning
The macro environmental analysis means scanning the external environment by using the
PESTLE analysis, analyzing the business cycle processes and evaluating the rates of exchange
and locations preferred for managing the processes of manufacturing and production (Subic et al.
2012).
PESTLE
Political
The consumption of products is good, because of which, Rebook has introduced its
products in UK and also in India and China for business expansion globally. Various laws, rules
and regulations are implemented for improving the business processes’ efficiency and ensure that
the level of unemployment is reduced and at the same time, revenue is generated through
collection of tax put on the products and services or during the import and export activities
(Cheah et al. 2013). The rules and regulations were followed by the company and it also
managed good relations with the political bodies for improving the financial performance and
create a sustainable position in the market.
Economic
Rebook is one of the most popular brands known for its wide range of good quality
footwear products and sports products. The products are both premium and mid ranged products

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that have been categorized for the different market segments. Rebook showed a GDP growth rate
of 8 %, though with the fiscal deficiency and falling down of currency prices, the financial
markets have experienced a lot of pressure (Tanwar 2013). Rebook has delivered footwear
products of international brands targeted towards the middle class market segment for fulfilling
their needs and requirements.
Social
The brand products are promoted through sports events and the young generation
customers are attracted as well. Due to this, the sports foot wear brand has enhanced its brand
image and name and made the customers maintain a healthy lifestyle. Employment opportunities
are provided along with good quality sports shoes that can made them carry out their sports
activities with ease (Mahdi et al. 2015).
Technological
With the technological improvements, the quality of products has improved and online
marketing techniques have allowed Rebook to grow consistently by achieving growth rate of
nearly 40 percent. The brand awareness among people has increased and the new technologies
implemented have also resulted in continuous innovation. The new and unique products have
fulfilled their demands and enabled them to remain passionate for their most favorite sports
(Geurin and Burch 2016).
Legal
Based on the Government and local policies, Rebook has paid taxes and fulfilled the
requirements for labor wages act too, based on the rules and regulations implemented by the UK

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Government. Abiding by the laws, rules and regulations has also helped in managing the supply
of products and ensure generation of good amounts of revenue. The legal policies should be
maintained for ensuring that the brand products were sold globally too (Snipes and Pitts2015).
Environmental
To maintain the environmental standards, Rebook has developed environment friendly
product for creating lesser harmful effects on the environment. To contribute to the environment,
the brand has managed safety and health standards for keeping the workplace safe and also the
environment clean and healthy where people are staying (Singh 2013).
Business lifecycle
The business lifecycle starts from the process of manufacturing and production until the
delivery of products and services to its customers. It is represented in a graph that shows the
consumption level compared with the revenue generated. During the economic recession, the
consumption tends to decline, which can affect the production, profit level and level of
investment made. With time, the spending by consumers increase, furthermore increases the
level of investment and generates high level of revenue, though there is shortage of labor. There
would be more employment with the growing business opportunities, which could improve the
expenditures and enhance the rate of production too (Ojo 2012).
The locations where the products are manufactured include USA, UK and most the raw
materials and resources are supplied locally. This has helped in maintaining athletic life styles
and kept the individuals more inclined towards sports activities (Nongo and Ikyanyon 2012).

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Industry and Sector Analysis
The industry and sector analysis, on the other hand, could be done with the use of Porter’s five
forces strategy, generic strategy and evaluating the different strategic groups too.
Porter’s Five Forces
The five forces are threats of new entrants, threats of substitute products, bargaining
power of consumers and suppliers and competitive rivalry (Buble 2012).
The threat of new entrants is low because of the high cost incurred while developing the
brand name and image. It has helped the company to stay ahead of the competitors and remain
unaffected from the new products delivered by some other companies. Due to the higher
economic scale, the company has a competitive edge over its competitors and it has created more
scopes for distributing the sports footwear products properly (Choi and Rifon 2012).
The threat of substitute products is medium because the customers who are involved with
sports activities have lesser alternatives when compared to the products offered by Rebook. The
prices of products are kept lower, because of which this force has created medium effects on the
organisation (Sola 2012).
The bargaining power of consumers is high because with the rise in prices of footwear
iems, customers might look for alternatives. The switching costs are low and the availability of
substitute products have further contributed to the high bargaining power of theirs.
The suppliers’ bargaining power is low, because they have been kept satisfied by
fulfilling their needs and requirements and this has facilitated the processes of manufacturing and
production largely (Kim, Lee and Prideaux 2014).

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The force that affects the business functioning most is the presence of competitive
rivalries. There are competitors like Nike, Adidas, etc. that have given stiff competition to the
market. The force is influenced by lower growth market, aggressiveness of competitors to enter
new market segments and this has prevented the organisation to gain competitive advantage and
higher profit level too (Tuan 2017). The generic strategies of Porter’s are cost focus, cost
leadership, differentiation focus and differentiation. The model was followed to ensure that the
products and services delivered could be differentiated and the buying behaviours of consumers
could be influenced.
Internal Analysis
As a marketing analyst, I recommend utilizing McKinsey’s 7, Johnson’s cultural web
strategy, Value chain analysis, Kaplan and Norton’s Balanced Scorecard, etc. With the use of
SWOT framework, I could determine the strengths, weaknesses, opportunities and threats and
integrate those with the strategic matrix present in the Telescopic Observation model. To remain
competitive within the diversified and changing business environment and based on the various
market conditions, SWOT analysis framework is used. It has not only allowed for identifying the
business strengths, weaknesses, opportunities and threats but also has resulted in developing
various management techniques for facilitating the process of decision making with ease and
effectiveness (Brammer, Jackson and Matten 2012). The Telescopic observation, on the other
hand, can help to focus more on the structure and ensure that relevant amount of information and
knowledge are obtained to formulate strategies and make decisions.
Handy’s Organisational Culture
The culture, according to the Handy’s organizational culture model, is categorized into
power, task culture, person culture and role culture. Rebook has followed the role culture to

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make the employees contribute to the organisation largely and generate more revenue in
business.
Power culture
For the power culture, the most important persons within the workplace are assigned with
the roles and responsibilities to make decisions and the subordinates need to follow their
judgments and instructions provided by the superior management individual at Rebook (Gorin et
al. 2012). The staffs are not allowed to make decisions without following the rules and orders of
the manager or leader of the organisation.
Task Culture
I n case of task culture, teams is formed for accomplishing the business goals and
objectives and work in coordination, as a team. Because of the presence of multiple members
within the team, they must contribute equally for brining innovativeness and accuracy in the
business outcomes derived.
Person Culture
The person culture allows the employees to make decisions properly and at the same time
understand their own roles and responsibilities to move in the right direction for business
success. This is not an effective culture because the employees work for their own benefits
without much focus on the organisation’s successful management of business operations
(reebok.com 2018).
Role culture
Rebook follows this kind of culture because the roles and responsibilities are assigned to
the employees based on their skills, knowledge and expertise level. This is done for providing
them convenience to do work and gain ownership of the tasks that have been assigned to them.

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Mckinsey’s 7s strategy
The various elements of Mckinsey’s 7s are strategy, structure, systems, shared values,
skills, style and staffs.
Strategy: The marketing strategies implemented are aligned with the telescopic observation
strategic framework for utilizing the strengths of the company and gain competitive advantage in
business.
Structure: The hierarchical structure of the organisation is suitable for managing the various
departments and ensures that all the staffs and employees perform to their potential to bring out
the best from each of the departments (Wang and Verma 2012).
Systems: The systems mean various activities managed by the organisation.
Shared Values: The shared values and beliefs mean maintaining a good corporate culture and
maintain ethics and values within the workplace, which is present at Rebook.
Style: The democratic leadership style is followed to make the manager or leader obtain the
opinions and responses of the employees prior to making decisions in business.
Staff: Rebook manages its human resources properly by providing them enough skills through
training for making them contribute to the organisation’s welfare.
Skills: The skills and knowledge are improved by providing them training and developmental
sessions and this allowed them to work harder (Iacob, Quartel and Jonkers 2012).
SWOT analysis