New Balance SWOT analysis – SWOT analysis of New Balance: New Balance is a brand of athletic footwear which is located in Boston, USA. The company makes various footwear and other related products that are suitable for any activity pattern that is related to sports. The brand that is a leader throughout the US in running sneakers and shoes is a preferred choice for children.
The brand has several styles of shoes for women, men, and children and also attempts to stand out by utilizing a variety of characteristics that the company is able to provide an experienced research team. With a remarkably strong client service group, the business also has a high level of customer satisfaction.
The company is a well-known brand of walking shoes, running yoga shoes, and other shoes. Some of them can be tailored to meet specific customers’ requirements. The business that is privately owned was founded in 1909, and it has been around for over 100 years now. The company has an annual turnover of $4 billion and employs over 5000 employees in the world at the time in the year 2017.
New Balance fun facts: The name “New Balance” actually comes from founder William Riley observing chickens in his backyard, and how a three-toed foot best supported a body.
About New Balance – SWOT analysis of New Balance
Company: New Balance Athletics, Inc.
CEO: Joe Preston
Founder: William J. Riley
Year founded: 1906, Boston, Massachusetts, United States
Headquarters: Boston, Massachusetts, United States
Annual Revenue: USD$4.5 Billion
Profit | Net income: USD$560 Million
Number of employees: 5,600
Products & Services: Athletic shoes | Apparel | Sportswear | Sports equipment
New Balance Competitors
SWOT analysis of New Balance – New Balance SWOT analysis
SWOT Analysis Of New Balance is brand-based. SWOT Analysis of New Balance evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing New Balance’s SWOT Analysis. Below is the detailed SWOT Analysis of New Balance.
Let’s talk about New Balance’s SWOT assessment.
Strengths of New Balance – New Balance SWOT analysis
- US brand: Quite unlike other firms that are competitors to New Balance like Nike and Adidas the brand makes its shoes in America. The majority of competitors manufacture sneakers in Europe which means it is less expensive than the prices that the US can provide.
- Customization: New Balance is among the first companies to produce shoes that are custom-designed. The customer visits New Balance’s New Balance showrooms and custom-style shoes are sent to them or collected within a single day. This concept has proven to not only win new customers but also keep existing customers more content.
- Difference: New Balance shoes are a brand that is highly distinct and the cost customers have to pay for the shoes is due to a few important distinctions. Customers can choose the color of their sneakers and choose the designs they prefer. Certain models also provide an option to print the customer’s name on the shoes. Customers are also able to visit newbalance.com for custom-designed shoes.
- A strong relationship with the top players: Similar to other companies that manufacture athletic footwear, New Balance also has an established relationship with top athletes. The list of more than 400 Major League Baseball athletes, including Tampa Bay Ray’s third baseman, Evan Longoria; and Detroit Tigers first baseman, Miguel Cabrera who wears the brand during their games and public appearances. They also support a range of high-profile sporting occasions which makes their relationship with sports more energizing.
- Brand positioning: The main merchandise that New Balance sells is shoes that have become the norm in recent times. To increase their attractiveness, New Balance ensures that their sneakers are strategically placed in the most popular films. Examples of such films include Gone Girl, featuring Ben Affleck, and Ted 2 featuring Mark Wahlberg.
Weaknesses of New Balance – SWOT Analysis Of New Balance
- High costs: The customized shoe option and the high-end shoes made by New Balance, make it more expensive to produce than other brands. Additional costs are also involved including sponsorship for events, promotional costs along with advertising expenses.
- Costly: The cost of manufacturing in the USA is greater than the cost of manufacturing the product in Europe which results in it being more expensive than rival brands. Although the company tries to distinguish itself from rivals, the consumer does not have the need to shell out the same amount.
- Teens’ preference: With changes in pop culture and the impact of the internet, sneakers have evolved in style and design. Teenagers do not have a particular preference but are also beginning to shop for more European brands. This in turn impacts American brands such as New Balance.
Opportunities of New Balance – New Balance SWOT analysis
Changing habits: The preferences of customers around the globe are evolving and with the increasing willingness towards spending consumer is more willing to invest in shoes that are custom-designed. New Balance is one of the first companies to create custom-designed shoes, which is why it is among the pioneers of this trend.
Threats of New Balance – SWOT analysis of New Balance
- Contest: The main competitors of New Balance are Nike, Adidas Puma, and Nike. Puma.
- The loss to piracy: There are many fake imitations that are cheap of the top footwear brands that are offered for sale at a low cost. The majority of customers are only interested in style and not quality, hence they purchase fakes, which can result in brands losing out.
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Overview Template of New Balance SWOT analysis
By having a closer look over the matrices used for financial analysis, it is said that the financial statements hold notable importance because it evaluates the management performance, plans, and corporate strategy for the future.
In addition, financial analysis helps companies in making more informed decisions for the firm. The underlying objective of the financial analysis is organizing the financial statement as well as other accounting data of an organization enabling comparisons with other companies, also enabling accurately evaluating of raw data. In short, it provides the basis for the company’s executives, analysts, and managers of making the company profitable in the forthcoming years (Helfert, 2017).
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