Evaluate New Balance's Current Operations Strategy. What Are the Key Decisions Implicit in This Strategy?

New Balance is the big five sneaker companies in the world. Comparing to other big five, including Nike, Adidas, and Reebok, it has its specific operations strategy. In fact, the idea of ‘Keeping unique’ is what they insist from the day one of its business. New balance emphasize on values of fit, performance, and manufacturing. It builds a distinct culture in its network internally and externally. The owners of New Balance would like to differentiate from their competitors. It includes the following items:

Improve inventory system. New Balance has enough product in inventory for replenishment. For each model of sneakers, it has wide range of size and widths, and enough amount for a backup to retailers. This strategy is different from other competitors.

Domestic factories. New Balance has its own domestic factories instead of outsourcing manufacturing process outside the United States. This is really unique in the industry, and the result is that its products can be sent to retailers in less time than other competitors. As Jim Tompkins said, “ we are manufacturing and operations-based, not marketing-based.

Less expense in marketing. It is a huge different between New Balance and the competitors for spending resources in marketing. The company would hope rather having a good quality sneaker as advertising than spending a huge amount of money for a sport star in advertising. Hence, it spends a lot of resources on research and design. It is also a kind of product-focused strategy.

Private instead of public. New Balance is running in private instead of public company. Hence, it is not responsible for reporting to the public. Hence, it is more flexible, especially in terms of financial issue, for the company to implement its operation strategy.

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