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Innovation and New Product Development Case Study
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
OR
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
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