Competitive Strategy & Reasons for New Balance

Competitive Strategy & Reasons why for New Balance

Founded in 1906 by William J. Riley, New Balance Arch Company had its origin as an orthopedic shoe manufacturer designed to improve shoe fit for Women, men and children. In 1930, New Balance Arch. developed the first handmade running spike. In 1934, Riley took on as a partner his top salesperson, Arthur Hall, who had found his niche by marketing his products to police officers and other people whose jobs required them to spend a lot of time standing. The company has several licensees such as Moretz Sports, Eyewear Designs, Fitness Quest, Franco Apparel Group, Packworks, Hickory Brands and the Levy Group. The company is now running by a California native Rob DeMartini. New Balance Athletic shoe markets its products in 120 countries in six continents. The company has wholly- owned subsidiaries in France, UK, Singapore, Australia, Germany, Sweden, Mexico, Canada, Hong Kong, New Zealand, Japan and South Africa. The company footwear is designed for running, walking, cross training, baseball, tennis and adventure sports. The company sells hiking boots, work boots, sandals, and boat shoes. The company also includes some after care products such as gel cleaner, spray cleaner, whitener, and odor eliminator. The company has three factories located in Maine and two are in Massachusetts.

Despite New Balance is a company well known in the international market, the company still facing major problems with competitors. New Balance falls behind its major competitors, Nike, Adidas, as Reebok in marketing. While its competitors have different celebrity for any occasion such as basketball, football, tennis, New Balance has none. This puts the company at a disadvantage when it comes to brand building. Most global brand names generate strong brand