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Case Title:

New Balance: Striking Balance with Comfort

Publication Year : 2005

Authors: U. Shipra Bhat, Bindu Kannan

Industry: Sports and Sports Related

Region:USA

Case Code: IPD0043B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In 2004, New Balance Athletic Shoe Inc. was the third largest athletic shoe manufacturer in the US. With its unique set of philosophies that included an “endorsed by no one” stand, retention of 25% manufacturing in the US, and a middle-aged customer segment as its primary target customers, the company was the only company to grow during the stagnated shoe industry in the mid 1990s. Despite huge advertising expenses and celebrity endorsements from the major players such as NIKE, Reebok and Adidas, the company grew and gained market share in the highly competitive athletic shoe industry. This case discusses the survival and growth strategies adopted by New Balance.

Pedagogical Objectives:

  • New Balance’s growth strategies
  • State of the US Athletic Shoe Industry
  • Future outlook of New Balance.

Keywords : New Balance; US Athletic Shoe Industry; Innovation Management Case Study; Athletic Shoes; Jim Davis; Nike; Reebok; Adidas; New Balance Suspension System Jim Tompkins; Width-sizing; Celebrity endorsements

Contents:

  • Introduction
  • Athletic Shoe Industry in the US
  • The Major Players
  • New Balance: Origin and Genesis
  • Design and Manufacturing
    • Shoe Development Process

    • Shoe Manufacturing Process
  • Product Features
  • The Distribution Set-Up
  • Promotion
  • Future Outlook

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