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Shoe industry today is quite widespread, and the production of sports shoes is the primary development direction of such large global corporations as Reebok and Adidas. Quite an extended period of these companies’ formation allowed them to gain recognition among consumers and compete successfully with other major trade brands. Quite a complicated development process helped the companies to go a long way from small organizations to world-famous corporations and become the most recognized manufacturers of sports shoes in the world.
The Reebok company was created in the 20th century as a small industrial enterprise and several decades later developed into one of the world’s largest organizations specializing in the production of sports goods, in particular, footwear. Throughout its development, the corporation has experienced many difficulties. As a result, it had a negative impact on the production sector. The lack of innovations in the field of IT technology and high competition from other major producers, such as Nike forced Reebok’s specialists to work hard to gain recognition among customers and sponsors. Nevertheless, the company purposefully achieved the set goals and focused on cooperation with sports stars who advertised its products.
Adidas is another major corporation that has been known in the world for several decades. In the late 1990s, the company bought Reebok, as the latter experienced some difficulties in the market. However, both organizations continued to actively distribute their goods. Adidas focused on cooperation with many sports stars and did not try to get recognition only due to one particular celebrity. The collaboration has brought quite substantial profits and allowed competing successfully in the world market.
Importance of Business Integration for Reebok
Business integration is essential for Reebok primarily because this company may not be able to cope with market competition on its own and can lose ground against other leading brands. As practice shows, this corporation has always had some difficulties with some essential points that are necessary for successful work. For example, the lack of experience in the development of IT technologies caused some regress in the company’s activities.
Also, cooperation with Adidas allows exchanging useful experience and implementing developed innovations into created products. If Reebok works as an independent corporation, there is a risk that the management will not be able to find a way to raise the company’s rating among consumers. This factor will undoubtedly lead to losses and can cause irreparable damage to the reputation of the organization among sponsors and famous athletes. Consequently, business integration for Reebok is a rather significant aspect.
Use of Information at Reebok
The start of using Internet technologies as one of the primary sources to obtain new information allowed the specialists of Reebok to have sufficiently valuable information concerning their organization. The introduction of innovative methods to find some relevant information from customers has become a new stage in the development of the corporation. There is a diagram below of what data are collected and how they are used.
Customer reviews are collected according to the number of satisfied and dissatisfied customers. The volume of sales is estimated based on the activity of consumers in the market and the number of purchases for a particular period. Tracking public sports events allows Reebok to timely respond to changes in the interests of buyers. The participation of stars is the data that the company needs to compile a detailed work plan; all sports celebrities that advertise this or that product are considered.
Identification and Solution of Problems
If there are any problems with the network or the software, they can be solved by a competent configuration and re-equipment of the system by experienced specialists. Quite often, disruptions in programs occur because of insufficient quality and unproven type of connection and distribution of information. It is possible to find the problem by evaluating the areas where the user visit falls. Setting up the system again, taking into account the number of users and the overall dynamics of visits can help to avoid such problems in the future and keep the software intact.
Disadvantages of Reebok’s Information System
Due to the fact that Reebok’s information system occasionally failed, it was problematic for the management to trace some critical points. In particular, it is about the dynamics of customer interest since it is a rather important factor, which largely determines the direction of the company’s development. Moreover, the lack of necessary knowledge also had a negative impact on sales as competitors’ information systems worked steadily and could react timely to any changes in fashion trends. These shortcomings have led to the fact that Reebok partially lost its high positions in the world market and could not achieve sufficient interest from clients.
Report to Management
Searching for solutions to current problems related to the company’s activities and analyzing all the shortcomings is an indispensable condition for the corporation’s successful activities. In the process of distribution of goods, some difficulties arise from time to time, and the organization is forced to suffer losses because of an inadequately organized information base. The correction of some pressing problems may allow achieving higher sales figures and actively compete with such global brands as Nike.
First of all, it is possible to revise the enterprise’s policy regarding information technologies. Obsolete software and inconsistency of technology with current market standards directly affect the decrease in corporate profits. Accordingly, equipping with new high-tech resources will improve the quality of control over sales and the dynamics of client activity. The purchase of new modern equipment can be a significant step in the process of developing the company’s performance.
Also, a late reaction to changing market interests is one of the factors that negatively affect the company’s profits. Some large corporations can quickly change the course of their activities and adapt to specific conditions, for example, to the production of sports equipment with particular symbols. An attempt to adopt their experience in this sphere can be a considerably useful way to generate additional profits by increasing the level of sales and, accordingly, popularity among buyers. All these measures are efficient enough to incorporate them into the work of the company and develop them actively.
Thus, the development of necessary spheres allowed the companies of Reebok and Adidas become world famous brands. Some problems that arise in the course of work are often associated with an insufficiently developed information base. The solution to the problem can be the necessity to update the software and monitor the interests of customers and changing trends in the market more carefully than usual.