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  • April 2006 (Revised June 2008)
  • Case
  • HBS Case Collection

New Balance Athletic Shoe, Inc.

By: H. Kent Bowen, Robert S. Huckman and Carin-Isabel Knoop
  • Format:Print
  • | Pages:18
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Abstract

Considers whether New Balance, one of the world's five largest manufacturers of athletic footwear, should respond to Adidas' planned acquisition of Reebok--a transaction that would join the second- and third-largest companies in the industry. Highlights the unique aspects of New Balance's strategy--focusing on fit and performance by offering long-lived shoes in a wide variety of widths and eschewing celebrity endorsement of its products--and discusses New Balance's operations decisions to support that strategy. These include significant use of domestic manufacturing at a time when nearly all other competitors sourced finished shoes from Asian suppliers and an emphasis on improving inventory management for its network of small and large retailers. Set just after the announcement of the Adidas-Reebok transaction in 2005, with New Balance having recently initiated a companywide effort to improve operational performance through the application of concepts from lean manufacturing and the Toyota Production System. Asks students to consider whether New Balance should change aspects of its operations strategy in light of the consolidation among its competitors or whether the Adidas-Reebok transaction represents an opportunity for New Balance to emphasize the importance of moving forward with its current approach.

Keywords

Mergers and Acquisitions; Production; Supply Chain Management; Performance Improvement; Competition; Consolidation; Apparel and Accessories Industry

Citation

Bowen, H. Kent, Robert S. Huckman, and Carin-Isabel Knoop. "New Balance Athletic Shoe, Inc." Harvard Business School Case 606-094, April 2006. (Revised June 2008.)
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About The Authors

H. Kent Bowen

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Robert S. Huckman

Technology and Operations Management
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Related Work

    • November 2012
    • Faculty Research

    New Balance Athletic Shoe, Inc. (Abridged)

    By: H. Kent Bowen, Robert S. Huckman, Carin-Isabel Knoop and Matthew Preble
Related Work
  • New Balance Athletic Shoe, Inc. (Abridged) By: H. Kent Bowen, Robert S. Huckman, Carin-Isabel Knoop and Matthew Preble
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