Did you know?
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.
New Balance was founded as New Balance Arch Support Company in 1906 by William J. Riley. An Irish immigrant, Riley resided in Boston, Massachusetts. It is believed that Riley was inspired to produce his first product after watching chickens strut around his backyard.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by New Balance.
New Balance At A Glance – New Balance SWOT Analysis
Company: New Balance Athletics, Inc.
Founders: William J. Riley
Year of establishment: 1906, Boston, Massachusetts, United States
CEO: Joe Preston
Headquarters: Boston, Massachusetts, United States
Employees (Dec 2020): 5,600
Ticker Symbol: NB
Annual Revenue (Dec 2020): US$4.5 Billion
Profit net income (Dec 2020): US$560 Million
Products & Services: Athletic shoes | Apparel | Sportswear | Sports equipment
Company Website: www.newbalance.com
Top New Balance Competitors
Competitors: Nike | Under Armour | Adidas | Reebok | PUMA | ASICS | Converse | FILA | Bata | Liberty Shoes
New Balance SWOT Analysis – SWOT Analysis Of New Balance
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New Balance Strengths – New Balance SWOT Analysis
1. US logo: Quite unlike other firms that are competitors to New Balance like Nike and Adidas The brand makes its shoes in America. Many competitors make their sneakers in Europe which means it is less expensive than the prices that the US can offer.
2. Personalization: New Balance is among the first companies to produce shoes that can be 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 strategy has proved successful to win over customers but also make current customers more happy.
3. The difference: New Balance shoes is a distinct brand and the cost the buyer has to pay for the shoes is due to a few important variations. The customer can pick the color of their sneakers and choose the designs they prefer. Certain models also provide options to put customer’s name on the shoes. Customers can also go to newbalance.com for custom designed shoes.
4. Strong connection with the top players: Like most manufacturers of athletic shoes, New Balance also has an established relationship with top athletes. The list of more than 400 Major League Baseball athletes, including Tampa Bay Rays third baseman, Evan Longoria; and Detroit Tigers first baseman, Miguel Cabrera all of who wear the brand at their games and public appearances. They also sponsor a variety of highly regarded sporting occasions which makes their relationship with sports more energizing.
5. Brand positioning: The main merchandise from New Balance is shoes that have become an everyday item. In order to enhance their appeal, New Balance ensure that their sneakers are strategically placed in the most popular films. Examples of such films include Gone Girl , featuring Ben Affleck, and Ted 2 which features Mark Wahlberg.
New Balance Weaknesses – New Balance SWOT Analysis
1. Costs that are exorbitant: The customized shoe option along with the high-end shoes made by New Balance, make it more expensive to produce than other brands. Additionally, there are additional costs like sponsorship of events, promotion costs, as well as advertising expenses.
2. Costly: The cost of manufacturing in the USA is greater than the cost of manufacturing the product in Europe and that means that it is more expensive than other brands. Although the company tries to stand out from counterparts, customers do not need to shell out the same amount.
3. Teens’ preference: With changes in pop culture and the impact of the internet, sneakers have changed in terms of design, and teens don’t just have the particular preference, but are beginning to buy more European brands, which then can affect American brands such as New Balance.
New Balance Opportunities – New Balance SWOT Analysis
1. Changing preference: The preferences of customers around the globe are evolving and, with an increasing tendency for spending, the buyer will be willing to invest more in shoes that are custom-designed. New Balance is one of the first companies to design customized shoes, and this is why it is among the first companies to take advantage of this trend.
New Balance Threats – New Balance SWOT Analysis
1. Contest: The main competitors of New Balance are Nike, Adidas and Puma.
2. The loss to piracy: There are lots of fake imitations that are cheap of the top footwear brands that are offered at a bargain price. Many customers just want the appearance and not quality of the product, which is why they buy the fakes, which can result in brands losing out.
New Balance SWOT Analysis Overview Template
This is the SWOT report that New Balance has done. Please let us know if you have additional suggestions to add.
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