Athletic Shoes Ranked by Sales
Company 1997
Nike
3,585
Reebok
1,229
Fila
488
Adidas
468
Converse
285
New Balance 265
1996
3,261
1,192
555
385
194
200
Company
K-Swiss
LA Gear
Puma
1997
92
70
23
1996
76
136
35
Ryka
14
10.2
8
5
11
7
Kaepa
Ellesse
Nike is 250 times bigger than Ryka
Ryka vs.Nike Cost Comparisons
Ryka
Nike
COGS
MKT
R&D
Source of Competitive Advantage
Breadth of
Competitive
Scope
Cost
Uniqueness
Broad
Target
Market
Cost
Leadership
Different.
Narrow
Target
Market
Focused
Low Cost
Focused
Different.
Source of Competitive Advantage
Breadth of
Competitive
Scope
Cost
Uniqueness
Broad
Target
Market
Cost
Leadership
Different.
Narrow
Target
Market
Focused
Low Cost
Focused
Different.
Dimension Y
Strategic Group Map
Ryka
Reebok
Nike
Dimension X
Analysis of the Competitive Environment
Threat of
Threat of
New
New
Entrants
Entrants
Bargaining
Power of
Suppliers
Rivalry Among
Competing Firms
in Industry
Threat of
Substitute
Products
Bargaining
Power of
Buyers
Ryka …Key Issues
 Definition
of industry?
 Favorable environmental trends?
 Has Ryka developed intangible resources?
 How important is marketing?
 Is Ryka successful?
 What should Ryka do?
Ryka Recently...
Intros new cushioning technology in running
shoes -- Consumer Reports “Best” rating
 Award employees one share stock per pair shoes
sold @ $0.92/share (Feb. 96)
 Alliance with Lady Footlocker (mid-96)
 Karl Malone gets seat on Ryka’s board (Jan. 97)
 Ryka and KPR Sports reorganized into Global
Sports, Inc. (GSPT) (Dec. 97); new CEO & TMT
 Sole worldwide sponsor, Jazzercise
 Ryka posted 2.7% loss for 1997
