Reebok's Goals Reebok's goal should be to maximize profits, while taking into account the production costs, the revenue it can get from a sale, inventory holding costs and salvage value of the excess jerseys. This is because although Reebok may want to minimize inventory, it needs to consider the impact such an action will have on the service level and its profitability. A low inventory may mean lower holding costs and lower risks of having excessive dressed jerseys after the end of season, which may become obsolete due to players switching teams or changes in jersey design. However, it could also mean a lower service level as it takes weeks for jerseys to arrive at their warehouse from the CM. By that time, the demand would have yet …show more content… Since we keeps safety stock of only the generic jerseys, customizing teams and numbers as demand is realized, we will be able to focus on aggregate demand levels and, therefore, aggregate demand has a much smaller standard deviation than individual demand, requiring less safety stock than the currently existing system. In this scenario, Reebok would therefore enjoy a reduction in production cost as it produces dressed jerseys at a higher volume.
Stage 1 — Idea Generation This stage deals with innovational activities like coming up with new product lines,changes in the marketing strategy,new business plans etc. For india several efforts can be taken to guage the anticipated response from the customers with the help of different public surveys ,hiring research companies ,SWOT analysis etc. Stage 2-idea screening It is vital to have all the information before launching any product in a price sensitive market like India. When it comes to fashion the multi international fashion enterprise Adidas , which is one of the most booming and advertised brands there is right now. Adidas is based all over the world and is a the third biggest sports gear manufacturing company ; behind Nike and espn.
Nike vs. Reebok Questions 1. The important part of the success was due to the far-sight of Nike's management team.