1. Athletic Shoes Ranked by Sales Company19971996 Nike3,5853,261 Reebok1,2291,192 Fila 488 555 Adidas 468 385 Converse 285 194 New Balance 265 200 Company1997 1996 K-Swiss 92 76 LA Gear 70 136 Puma 23 35 Ryka 14 10.2 Kaepa 8 11 Ellesse 5 7 Nike is 250 times bigger than Ryka

2. Ryka vs.Nike Cost Comparisons

3. Breadth of Competitive Scope Source of Competitive Advantage BroadTargetMarket NarrowTargetMarket Cost CostLeadershipCostLeadership Different.Different. Focused Different. Focused Low Cost Uniqueness

4. Breadth of Competitive Scope Source of Competitive Advantage BroadTargetMarket NarrowTargetMarket Cost CostLeadershipCostLeadership Different. Focused Different. Focused Low Cost Uniqueness

5. Strategic Group Map Dimension X Dimension Z Dimension Y Ryka Nike Reebok

6. Threat of Substitute Products Threat of New Entrants Analysis of the Competitive Environment Rivalry Among Competing Firms in Industry Bargaining Power of Buyers Bargaining Power of Suppliers

7. Ryka …Key Issues n Definition of industry? n Favorable environmental trends? n Has Ryka developed intangible resources? n How important is marketing? n Is Ryka successful? n What should Ryka do?

8. Ryka Recently... n Intros new cushioning technology in running shoes -- Consumer Reports Best rating n Award employees one share stock per pair shoes sold @ $0.92/share (Feb. 96) n Alliance with Lady Footlocker (mid-96) n Karl Malone gets seat on Rykas board (Jan. 97) n Ryka and KPR Sports reorganized into Global Sports, Inc. (GSPT) (Dec. 97); new CEO & TMT n Sole worldwide sponsor, Jazzercise n Ryka posted 2.7% loss for 1997