Reebok's Strategic Management Models in Business Strategy Game Report

This report provides a comprehensive analysis of Reebok's business strategy game, focusing on the strategic decisions made and the application of various strategic management models. The report outlines the group decisions made within the game, detailing the roles and responsibilities of different...Read More

BUSINESS STRATEGY
GAME

Table of Contents
BUSINESS STRATEGY GAME....................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
OUTLINE AND EVALUATE THE GROUP DECISION MADE IN PLAYING THE
BUSINESS STRATEGY GAME...............................................................................................4
ROUNDS OF BUSINESS STRATEGIES GAMES IN REEBOK............................................5
APPLY AND EVALUATE AT LEAST SIX SUPPORTING STRATEGIC MANAGEMENT
MODELS, CONCEPTS AND IDEAS THAT UNDERPIN YOUR STRATEGIC
APPROACH...............................................................................................................................6
Mission, Vision and Corporate Objectives of the Reebok.....................................................6
Pestle analysis of Reebok.......................................................................................................7
Porter Five Model of Reebok.................................................................................................8
Mc Kinsey of Reebok.............................................................................................................9
SWOT Analysis Reebok.......................................................................................................10
7 P's of Reebok.....................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy game is a game in which the players are uncoerced and they have very
strong decision making skills which brings the best business for the players playing business
strategy game. The player who are playing this business strategy game must be aware about the
market situation and they have to build their own internal decision tree by which they make
strategies regarding the changes and unstable market scenario. The decision tree will consist of
all the strategies, decisions, rules and policy made by the player to achieve success in the
organization.
Reebok is a company which is operating in the 4 geographical areas such as Asia,
Europe, Russia and North America. The company was established in the year 1958 with
headquarter in Boston, Massachusetts, United States. The company is an textile industry which
produces products like sports clothing and foot wares. Joe and Jeff foster were the founder's of
Reebok.

MAIN BODY
OUTLINE AND EVALUATE THE GROUP DECISION MADE IN PLAYING THE
BUSINESS STRATEGY GAME
The group decision made in playing business strategies game by the Reebok are as
follows:
 The company decided to make the perfect production plants which included the decision
which were made by employees of the organization. These employee's working in
Reebok were divided into group of 10-15 members.
 Each group was provided with a task which they have to complete in a specific amount of
time. Each group of the company was working for a particular department. These
department of Reebok were the production department, marketing department, HR
department, finance department, retailing department and those who are charged with
governance of the company(Weijs, and et.al., 2016).
 The decision regarding the cost of plantation of machines in the production department
was taken by the employees working in the production department of the organization.
 The proper use of the machines by which the expected output will be produced by
keeping the minimum cost of production is taken care by employees who handles the
business simulation of the Reebok.
 The decisions taken for the expanding the business will require more updated machines
and latest technologies to increase the production in the department. Which techniques
will be used in the markets and what changes should be made in the production process
are discussed by the production team.
 The group decision leads to sharing of more and more ideas and the skills and knowledge
of every individuals develops a lot while working in a group. This is what the marketing
strategies of Reebok required from their group of employees.
 The marketing strategies cannot be made by any individual or group of few employees.
The opinion and suggestions of each and every employee of the organization is
important. The final marketing strategy of Reebok was made by analyzing the market
scenario and the creating strategies to do marketing in such a way that the product's of
Reebok gets highlighted in the market(Onu, and et.al., 2019.).

 The strategies made by the marketing group employees were making the portfolio of the
products and innovative campaigns in which the difference between products of Reebok
and products of other competing organization were differentiated.
ROUNDS OF BUSINESS STRATEGIES GAMES IN REEBOK
The rounds in Reebok's business strategies games were made on the promotion strategies
by which the business can be grown in the market. The rounds of business strategies Reebok did
in the market were as follows:
 Round I – Fight for keeping the ladies first
The fight for keeping the ladies fist was to produce sports wear products for the ladies so that
they also get motivated towards sports and other activities. In the early years of 1980's, the first
women sports wear were launched by the Reebok. This business strategy got hit in the market
and after the of women's wear in the market and just after the launching of women sportswear by
Reebok in the market, Jane Fonda launched her first workout session for the women which
included the aerobics, gymnastics and other workouts which increased demand for women sports
wear in the market(El-Nasr, and et.al., 2016).
 Round II – Again and faster
The Reebok was bought up in the market by Adidas in the year 2005. The company was known
as sister branch of the Adidas and the employees of Reebok were trying their best to make the
Reebok products famous in then market so that the company can make their own well defined
identity in the market. The organizations made such innovative products which created a huge
demand in the marketer within the time period of 3 years. As the time passed the products of
Reebok came more into demand as compared with the products of Adidas.
 Round III – Focus
The focus was on opening more and more retailing outlets in the Boston. There was time when
the retailing outlets of Reebok were closing in the Boston and the home offices were relocating
from the country. The company focused more on the fitness of their customers rather than cross
fits and running practices. The major focus of the Reebok was to make the people of the country
fit and healthy. The company focused on motivated the people to take some time out of their
busy schedule and do exercise which will keep them healthy and fit.

APPLY AND EVALUATE AT LEAST SIX SUPPORTING STRATEGIC
MANAGEMENT MODELS, CONCEPTS AND IDEAS THAT UNDERPIN YOUR
STRATEGIC APPROACH
The six supporting strategic management models, concepts and ideas that underpinned
the strategic approaches were as follows:
Mission, Vision and Corporate Objectives of the Reebok
Mission of Reebok
The mission of the Reebok was to face market challenges every day and lead in the market
because of creative and innovative products made by the company. The marketing programs of
the company reflected the potential of the company in doing creativity in the products of the
organization. The company wanted their products to have an different image as compared with
the other brands products. The company sees the worlds with a different perception in which
company's products which will leave a positive mark on their customers(König, J.A. and Wolf,
M.R., 2016).
Vision Of Reebok
The vision of the Reebok was to make the every single person of the world whether they are the
kids, women, men, boys, girls, old women and old men to use the products of Reebok. The
company was producing in all the sectors by keeping all the age groups in the mind. The Reebok
gave opportunities to their customers in which they were having the right to touch those
opportunities about which they had dreamed in their life. The company was helping those
customers who were good in sports but due to financial issues they were not able to afford the
tournament fees and expenses made in playing the sports. According to the business's simulation
it was an business strategies to expand their business by doing such CSR activities in the
organization.
Objectives of Reebok
The objectives of the Reebok were to establish result oriented culture, strengthen the
management team of the Reebok, Con temporize our products, Creating relevant advertising and
effective retailing consumers market campaign and to grow quality market shares. These were
the objectives which the Reebok has made. The company tried their best to complete all these

objectives. Many business strategy games were played for the achievement of all these
objectives.
The Reebok has made success in the market because of the businesses strategies which they used
to create the mission, vision an objectives of the company.
Pestle analysis of Reebok
The pestle analysis of Reebok are as follows:
Political Factors
The political factors which effected the business strategies of the Reebok were the support the
international business of the company. The government has played a major role in reforming the
business strategies made by the employees of the Reebok. The company has made many policies
which will reformed by the government. This reformation involved the taxes applied by the
governments, rules regard the export of the products of Reebok. The taxes on the import of the
raw material used for the manufacturing of the products of the Reebok are also determined by the
government of their country. There were many strategics made by the both employees and
government regarding the expansion of business in various countries. As the demand of the
products of Reebok were increasing at very rate, the employees made the strategy to open the
outlets of Reebok on those countries who's people have created highest demand in the
organization. The organization will recruit the employees of those countries so that the rate of
employment will increase in those country and their economic condition will also
develop(Lovell, N., 2018.).
Economic Factors
The economic factors which lead to the changes in business strategies of the Reebok were the
production of the products which were mid ranged as well as premium for the customers of the
country. The customers with lower income were also able to purchase the products of the
Reebok. As the company was producing many differentiated products in the market by keeping
their prices very low, the demand of the products increased and the high sales of the products
made the growth in the economy. The company has given the attention on the changing fashion
and needs of their customers(Eliashberg,and et.al., 2016.).
Social Factors

The business strategies of the Reebok in influencing the social factors were the making the good
tie ups with the sports academies and sports events which will help them a lot in making profits
for the business. These sports academy and sports events will provide the shoes, t-shirts, shorts
and trousers of Reebok to the players and by this the company will be highlighted in the eyes of
the customers. The brand developed their own website by which they can easily reach to their
customers. In this the customers were having a facility by which they can order their favorite
products online. The selling of products online was the best strategy made by the employees of
the Reebok. By this strategy they were covering those countries also where there was no scope of
opening the outlet(Arora, P. and Tedeschi, G.A., 2019).
Legal Factors
The legal factors which effected the business of the Reebok were the different taxes paid
according the taxation policies of the different countries. Every country have their own tax
policies so the Reebok was paying taxes according to the each country according to their
taxation policy. The rates of the products of Reebok were different in every country and
according to changes in tax rates, the prices of the products varies in different countries. The
business strategies for doing business operations in each country was varying due to different tax
policies in the countries.
Environmental Factors
The environmental factors which effected the business of the organization was the strict use of
the good quality raw material which will not harm the environment of the country. The Reebok
was following all the rules and regulations made by the government for the industrial act so that
the company never makes any waste during the production process which will harm the
environment.
Porter Five Model of Reebok
The porter five model for Reebok is as follows:
 Competitive Rivalry – High
The competitive rivalry for Reebok is very high because there are many other brands who are
producing the same products which the Reebok is producing in the market. After the launch of
women sports wear in the market by Reebok, Nike also launched the women wears in the
market. This created a high competition in the market by the organization. The business

strategies used by Reebok for keeping the existence of their products in the market, the company
kept the prices very low so that the people having very low income can also afford those
products(Mayer, I., Warmelink, H. and Zhou, Q., 2016).
 Threat of New Entrant – Low
The Reebok was having its own design and logo written on each product of the company which
cannot be copied by any other organization who wants to produce in the same sector.
 Bargaining Power of Suppliers – Low
The raw materials supplied by the suppliers were having the fixed cost which cannot be changed
frequently. The chances of bargaining done by the suppliers were very less because the if the
suppliers will do the bargaining, then the company will move to some other supplier who can
provide the same material in low cost.
 Bargaining Power Of Customer – Low
The bargaining power of the customers of Reebok is very low as compared with other brands.
The Reebok is already offering the products which lowest in cost as compared with other brands
products. So the chances of customers bargaining were very less(Durkota, and et.al., 2015).
 Threat of Substitute – Medium
The threat of substitute product of the organization was high because the other companies such
as Nike, Adidas, Puma, Columbia etc were manufacturing the same products in the same
segments in which the Reebok was products.
Mc Kinsey of Reebok
The Mc Kinsey Model for Reebok is as follows:
 Strategy
The business strategies used by the Reebok in doing the business in the market was to keep the
price of their products very low so that the customers of every segment can afford it. The
company was not only keeping the prices of the products low, but they were also offering the
best quality in the lowest cost possible(Caiazza, R. and Audretsch, D., 2015).
 Structure
The business strategies used in making the good organizational culture was the making the
groups and team which were operating in the different sectors of the company. These employees

were divided according to their specialties, skills and knowledge which will be useful for the
growth of the organization.
 Style
The styles by which the business managers can achieve the goal of the organization an also the
employees satisfaction from the work given top them. The resources will be allocated in such a
way that the Reebok remains on first position in the market and the company fulfills all the
demands of their customers(Burns, P., 2016).
 Staff
The staff of the Reebok was divided into groups which were provided with some specific task
which they have to complete on time.
 Skill
The skills of the business strategies makers were according to the changing situation of the
market. They were improving their skills according to the market changes and needs of the
customers.
 System
The system of the Reebok was that the employees have to follow all the rule and regulations
made by the company. These rules were made by keeping the market strategies in mind so that
the output produced by the employees will be fruitful.
 Shared Values
The shared values of Reebok were kept as the first priority because the company knows that if
they will loose the shared values of the company the the employees will not work in efficient
way(Akter,and et.al., 2016).
SWOT Analysis Reebok
The SWOT analysis of the organization can be done as follows:
 Strengths
The strengths of the Reebok business strategies were the products range, multiple channels of
distribution, prices of the products and decision making by the employees of the business.
 Weakness
The weakness of the Reebok business strategies were the excessive commercialization and poor
awareness about the competitors in the market.

 Opportunities
The opportunities of the Reebok business strategies were that they were looking for the new
market in which they can produce products other than sportswear.
 Threats
The threats in the Reebok business strategies were the increasing competition in the market. The
competitors of the Reebok were the Puma, Nike and Adidas(Lubberink, and et,al., 2017).
7 P's of Reebok
The 7 p's which effected the business strategies of Reebok were as follows:
 Product
The products of the Reebok have made by making using technology which named shoes of the
company as the “moving air”. The reason behind this was that the shoes made for the the
customers who daily go for the running and jogging. The strategies for giving the name to the
products has increased their sales in the market.
 Price
The prices of the products were skimmed at the time of launch so that they will create high
demand in the market.
 Place
The place where the retailing sectors of the Reebok where they were earning the highest profit
are Amsterdam, Mexico City, Montreal and Hong Kong.
 Promotions
The promotional strategies used by the Reebok was to provide their products free of cost to the
cricketers of the different countries. This will be the best marketing strategy for the company
because maximum population of the world watches cricket(Sousa, and et.al., 2018,).
 Packaging
The packaging of the products of Reebok was totally different. There was no use of plastic in any
packaging process.
 Positioning
The position of the Reebok products were on number one because the company was giving the
best quality in the minimum price to their customers.
 People

The people who were purchasing the products of Reebok were the both high incomer and low
income employees of the market.
CONCLUSION
The report can be concluded by the mentioning all the business strategies used by the
employees of the Reebok in making it number one brand in the world. The company kept the
prices of their products low so that they can achieve the maximum sale during the initial time of
the product launch. As the demand of the products will increase in the market, the company will
start increasing the prices of their products. This strategy will bring high amount of profit in the
organization. As the quality of the products of the Reebok were excellent, the demand of the
products never decreased in the market.
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