Athletic Shoes Ranked by Sales

1
Athletic Shoes Ranked by Sales

• Company 1997 1996
• Nike 3,585 3,261
• Reebok 1,229 1,192
• Fila 488 555
• Adidas 468 385
• Converse 285 194
• New Balance 265 200

• Company 1997 1996
• K-Swiss 92 76
• LA Gear 70 136
• Puma 23 35
• Ryka 14 10.2
• Kaepa 8 11
• Ellesse 5 7

Nike is 250 times bigger than Ryka
2
Ryka vs.Nike Cost Comparisons
3
Source of Competitive Advantage
Cost
Uniqueness
Cost Leadership
Broad Target Market
Different.
Breadth of Competitive Scope
Focused Different.
Focused Low Cost
Narrow Target Market
4
Source of Competitive Advantage
Cost
Uniqueness
Cost Leadership
Broad Target Market
Different.
Breadth of Competitive Scope
Focused Different.
Focused Low Cost
Narrow Target Market
5
Strategic Group Map
Ryka
Dimension Y
Reebok
Nike
Dimension Z
Dimension X
6
Analysis of the Competitive Environment
Threat of New Entrants
Threat of New Entrants
Rivalry Among Competing Firms in Industry
Bargaining Power of Buyers
Bargaining Power of Suppliers
Threat of Substitute Products
7
Ryka Key Issues

• Definition of industry?
• Favorable environmental trends?
• Has Ryka developed intangible resources?
• How important is marketing?
• Is Ryka successful?
• What should Ryka do?

8
Ryka Recently...

• Intros new cushioning technology in running shoes
  -- Consumer Reports Best rating
• Award employees one share stock per pair shoes
  sold _at_ 0.92/share (Feb. 96)
• Alliance with Lady Footlocker (mid-96)
• Karl Malone gets seat on Rykas board (Jan. 97)
• Ryka and KPR Sports reorganized into Global
  Sports, Inc. (GSPT) (Dec. 97) new CEO TMT
• Sole worldwide sponsor, Jazzercise
• Ryka posted 2.7 loss for 1997