Rollerblade Micro-Environment analysis
Businesses are affected by both internal and external factors; to remain competitive leaders should keep making timely, quality, responsive business decisions.
The United States apparels industry is highly competitive with international and domestic players; in2010, US footwear industry recorded a decrease in sales by 2%, the industry was worth US$42,045 with 2 billion pairs sold. This paper discusses micro-environment of Rollerblade Corporation (Rollerblade Official website, 2011).
Sport market in the United States
Despite global financial crisis of 2007, the United States sports market recorded an increased sale in the years 2010, during the year, the market increased with 3%; this was a total value of US$27,371. Shoes recorded a marginal decrease in these sales with women sportswear shoes recording the highest decline in 2010.
In relation to unit prices for the products, the prices increased marginally in 210 to record an increase of 1% on average; the products that experienced the highest increase were children sports footwear which recorded an increase by 3%.
With the growth in globalization, there have been growth in online selling where the target are international markets; in 2009, Amazon was able to complete sales worth US$930 through its online sellers like Zappos.com. In 2010, Jones Apparels announced that it had increased its sales with 2%; the move had been attributed to growth in clothing sectors mostly children clothing’s.
Competitors
There are a number of players in the sportswear industry; the players are both national and international. The main competitors that Rollerblade has to deal with include Fila and Nike; they are companies that specify on sporting apparels.
Nike
Competition in the United States sportswear industry is high, however Nike has been able to share the largest market where it shares about quarter of the market at 23%, and payless shoesources Inc. follows a distance second at 5% of the market share. The company has a strong brand name thus Rollerblade has to devise mechanisms to compete with the multinational; it also enjoys economies of scale (Nike Official Website, 2011).
Fila
Fila Company is another competitor that Rollerblade has to consider when making marketing and product development strategies. Fila Company is an Italian multinational that operates in more than none countries United States included.
The company had strong marketing team that advises the management on the right approach to marketing. The company has invested in investment in skating footwear and other apparels, in 2009, the company introduced the Fila carving skates, with active steering technology which are skating shoes with high levels of comfort.
With the market aggressiveness, Rollerblade has to enact effective selling and marketing policies to sell their products effectively. Although Rollerblade has been favoured by the growth of skiing sport, its competitors have developed products, shoes that are preferred by sportsmen than the products made by the company.
The fast developments of the company’s products have make Rollerblade face high competition from the company. Fila are highly supported by its strong brand names; the company is able to venture into new business arenas because of the strength of its name (Fila Official Website, 2011).
New Balance Athletic Shoe Inc
Another competitor that Rollerblade has to consider when making its products is New Balance Athletic Shoe Inc. The company accounted for 0.2 % of Unites States sales of apparels in 2010; the amounts realized are US$774 million in US sales. The level sales had reached that record high because of its business diversification to footwear sporting items.
To remain competitive the company has embraced technology and engaged in business partnership with wholesalers and retailers like J Crew. It was ranked the seventh in foot ware sales in 2010; Rollerblade has the task of coming up with project that address such strong competitors (New Balance Athletic Shoe Inc, 2011).
Customer
Rollerblade choose its customers from a wide range of potential customers, the main area that the company has concentrated in are sports people, both men and women where it sponsors some sports as marketing tools. Other than the established players, the company has programs that reach to future markets; they include policies and marketing strategies that address children, college students, and high school students.
The method of marketing is aimed at creating close marketing link with the youthful population in preparation of future markets (Neal and Quester, 2006).
Rollerblade marketing team is conscious of the method of selling that its competitors are using; the method is superior as it assists the company know the right approach to the market and the kind of commodities that markets are looking for.
When developing products, the company undertakes wide research on the right developments they should adopt in their strategies. The aim of the company is always to offer high quality products and create and maintain its customer’s loyalty (Metters, Kathryn, Madeleine and Steve, 2006).
References
Fila Official Website. 2011. Fila. Web.
Metters, R., Kathryn, K., Madeleine, P., and Steve, W.,2006. Successful Service Operations Management. Thomson South-Western: Mason.
National Museum of Roller skating Website, 2011. National Museum of Roller skating. Web.
Neal, C. and Quester, P.,2006. Consumer behaviour: implications for marketing strategy.NewJersey: McGraw-Hill.
New Balance Athletic Shoe Inc., 2011. New Balance Athletic Shoe Inc. Web.
Nike Official Website., 2011. Nike. Web.
Rollerblade Official website.,2011. Rollerblade. Web.