Analyze the efficacy of Nike's 'Considered' footwear index scoring system

U.S. Withholds $65 Million From U.N. Relief Agency for Palestinians

By GARDINER HARRIS and RICK GLADSTONEJAN. 16, 2018

ASHINGTON — The Trump administration is withholding more than half the funding that the United States generally has provided to a United Nations agency that aids Palestinian refugees, officials said Tuesday.

Heather Nauert, the State Department spokeswoman, said the United States would provide $60 million to the United Nations Relief and Works Agency but would withhold $65 million “for future consideration.”

Ms. Nauert said that the decision was intended to encourage other countries to increase aid, as well as to promote reform at the relief agency — and that it was not intended to be a punitive move against Palestinians. But she refused to comment when asked if the funding shortfall was linked to President Trump’s threat on Jan. 2 to end the aid after Palestinian leaders said the United States should no longer play a role in peace talks with Israel.The withholding was denounced by the Palestinians and welcomed by Israel. “Once again, the U.S. administration proves its complicity with the Israeli occupation by attempting to remove another permanent status issue off the table,” said Hanan Ashrawi of the Palestine Liberation Organization’s executive committee.Danny Danon, Israel’s ambassador to the United Nations, said the United Nations Relief and Works Agency “has proven time and again to be an agency that misuses the humanitarian aid of the international community and instead supports anti-Israel propaganda, perpetuates the plight of Palestinian refugees and encourages hate.The agency funds schools and health clinics that serve nearly two million people in Lebanon, Jordan, the West Bank and Gaza Strip. As funding declined recently, the agency began significant layoffs of teachers and health workers, many of them refugees themselves.

Mr. Trump has turned American policy sharply in favor of Israel and against the Palestinians. He has formally recognized Jerusalem as the capital of Israel and threatened to close the Palestine Liberation Organization’s diplomatic mission in Washington.

The United States provided more than $355 million to support the relief agency’s 2016 operations, and also gave about $290 million last year to the Palestinians through the United States Agency for International Development. Altogether, the United States has provided about $5.2 billion in assistance to the Palestinians since 1994, a level of funding that is likely to be reduced in the coming years as the Trump administration works to cut foreign assistance.

Tuesday’s announced cut alarmed United Nations officials and aid groups that regard the United Nations Relief and Works Agency as a critical pillar of well-being for Palestinian refugees in the West Bank and Gaza and in neighboring countries.

He said the relief agency’s services were of “extreme importance” to the populations of Palestinians who had lived as refugees for 70 years. Mr. Guterres said that was not only his opinion but “an opinion that is shared by most international observers, including some Israeli ones.”

Many Israelis worry that any rapid reduction in such aid could destabilize the region and force Israel to pick up a larger share of the costs. Jordan, where many Palestinians have settled, is also coping with a huge influx of Syrian refugees.

“That the Trump administration is using humanitarian aid for schools and hospitals as a cudgel to punish those who disagree with their policy decisions is deeply troubling,” said Jeremy Ben-Ami, president of J Street, a Washington-based liberal advocacy group for peace in the region.

Robert B. Satloff, executive director of the Washington Institute for Near East Policy, said he was “not a fan of massive cuts” to funding for the relief agency, saying he would prefer other solutions, such as changes to how Palestinians become eligible for refugee status.

United Nations funding for Palestinian refugees grows in part out of a longtime assumption that a Palestinian state would eventually be created. But cuts to that funding, along with other efforts that dim hopes for a two-state solution, could accelerate a shift among younger Palestinians to abandon the push for a separate state and instead demand full civil rights from Israel.

Jared Kushner, Mr. Trump’s son-in-law and a top adviser, is quietly continuing an effort to find a peaceful resolution to the Israeli-Palestinian conflict that experts hope will at least persuade Palestinians not to suddenly end many accommodations with Israel.

“It is proximity that almost guarantees a continued accommodation,” said Aaron David Miller of the Woodrow Wilson International Center for Scholars, who was a State Department Middle East analyst and negotiator in Republican and Democratic administrations. “The proximity also guarantees tension. That’s the paradox here.” ( make short summury on this)

Is the spirit and intent of Title IX written in 1972 is a reality today? Why or why not?

“Dollar Shave Club” created an ad for their services that went viral a few years back. On the strength of the ad alone they were able to attract over 200,000 subscribers. What does the “Dollar Shave Club” do…? They provide inexpensive razor blades that they deliver each month. There are three pricing options ($3.50, $6.50, and $9.50 per month including shipping).

First, explain how they have segmented the market. Which key needs have they targeted? How would you go about characterizing this segment? Who are the people that have these needs, and why do you think this? How confident are you that you can accurately characterize his segment?

Second, explain why we would even want to characterize the segment? What use is it to marketers to characterize their target market? Explain. Finally, talk a bit about the match (or mismatch) between the advertising tool that “Dollar Shave Club” used and their “true” target market. In case you are not aware of the viral video, it was basically a humorous, irreverent ad in which the company’s CEO (a young casually dressed man) jokingly talked about the virtues of cheap razor blades while making some pretty whacked-out jokes. Given your previous answer, what other broad types of media (using the terminology discussed in class) do you think might be appropriate to reach the target market you identified & why (don’t worry about being too specific here, we’re looking to see that you understand the reasons why you would use different media types, rather than the specific tactics).

Question 1 Given the five driving forces propelling greater interest in CSR (see Ch. 4), research/find real-life examples to illustrate why you agree or disagree with the textbook's points. What new emerging forces do you see that may reshape CSR in the future? (10 pts) Question 2 What is the correct role of a media channel in a democratic society? Are the media there to police society's institutions and hold them accountable based on their own biases and political agendas? Or are they there to report the news objectively without taking sides. Use moral, logical, and economic arguments to support your viewpoint. From what you know of CNBC, did they perform well or badly in terms of reporting before, during and after the 2007-2009 financial crisis? (5 pts)

Is corporate culture an important element in an organization and its strategic direction? How can organizational culture be created, influenced, and changed?

What are the pros and cons of outsourcing? When is it desirable and necessary?

With the ultimate goal in mind – improving population health, what tools, systems, and technologies can the organization use?

·

·         Why a small business startup gets caught in the dilemma of “to grow or not to grow”?

explain the following in 2 paragraphs :

1.Offensive Strategic Moves
Offensive strategic moves are proactive moves made by an organization to get/stay ahead in an industry, rather than a defensive strategy that reacts to competition. These strategic actions involve a company being proactive in attempts to increase revenue, market share, hedge from competition in the industry, and to mitigate risks of competitors getting ahead. This strategy is significant due to the potential to help stand apart from competition (or eliminate it completely). The ability for an organization to successfully implement an offensive strategy can yield vast benefits and can result in a company being perceived as a trend-setter/innovator in an industry. Despite the positive results that could occur, implementing offensive strategic moves typically involves investing a lot of capitol, which can be a major barrier for some companies to be able to attempt this strategy. Such seems to be the case for K-mart, and Sears Holdings, based on the continued struggles of the organization to compete and remain viable. Plenty of strides are being made to increase revenue and decrease global operating costs, such as merging some upper management job functions while merging various corporate locations, but, K-mart may not be at a point where it could implement an offensive strategic plan. It seems more plausible that K-mart could attempt to implement an offensive competitive strategy in a few years if it is able to leverage more savings in its costs to operate, which will likely result in more store closings and a resurgence in brand interests before that occurs to a point that would enable K-mart to invest in plans such as improving the networking infrastructure to facilitate implementing the latest technological advances to increase revenue, for example.

2. First Mover Advantage

The first mover advantage is achieved by an organization being able to be one of the first on the market with an innovative product or service. This is significant for a company because it can allow the establishment of brand recognition in an industry tied to a potentially revolutionary product/service, and brand loyalty can be established early in a product/service phase before competitors even have a chance to enter this market. Companies that are first movers also enjoy a lot of freedom in terms of pricing the products/services, while also having the time to modify and perfect the item/service that yielded the competitive advantage. In an industry that is replete with dozens, perhaps hundreds of other companies nationwide offering an identical variety of products, from groceries, to clothes, to tools, and much more, it seems like it would be hard for an organization that is struggling to maintain its market share while remaining economically viable to find ways to take advantage of being a first mover. K-mart has had little investment in the way of research and development for innovative ways to market and sell its products, and it does not seem like K-mart is in a position to utilize this type of advantage at this time.

3. Defensive Strategic Moves

Defensive strategic moves are management tools that can be used to fend off an attack from a potential competitor. It is like a battleground. Companies must protect their market share to keep their profits stable. They must hold on to what they have by using their competitive advantage.There are two approaches to defensive strategy. The first approach is aimed at blocking competitors who are attempting to take over part of a company’s market share. They can block competitors by adding incentives or discounts to their products to encourage customers to buy. A company can also increase advertising and marketing campaigns. The second approach is a company can announce new product innovations, plan a company expansion, or reconnect with old customers. This approach is not as aggressive as the first one and is done in a more relaxed manner.Kmart has used some of these moves before. They have added discounts to some of their Kmart brand products and have an incentive program, ShopYourWay, where shoppers earn points for purchases. Shoppers can redeem the points for merchandise. Kmart’s leadership should also protect its market share by increasing advertising, so customers will be aware that Kmart stores are still in business and striving to reclaim its place in the market. They should also reconnect with old customers by offering them an additional incentive to shop with them again and try to regain their loyalty.

4. Strategic Alliances
Strategic alliances are agreements among firms in which each commits resources to achieve a common set of objectives. Companies can form strategic alliances with competitors, schools, suppliers and customers. Strategic alliances allow companies to improve competitive positioning, share the risk or cost of major projects, and gain entry to new markets. I think Kmart should merge with or be acquired by Amazon. Amazon advertising Kmart’s products can give Kmart the boost that it needs. It would allow them to have their products exposed to millions of customers that would not even consider looking at Kmart’s website. Kmart merging with or being acquired by Amazon would also give Kmart the financial backing it needs to create more innovative products.

5. Horizontal Integration
Horizontal integration is the range of product and service segments that a firm serves within its market. A company who wants to expand its horizontal scope has an opportunity to do that through mergers and acquisitions. A merger is combining two or more companies into a single corporate entity, with the newly created company often taking on a new name. An acquisition is a combination in which one company, the acquirer, purchases and absorbs the operations of another, the acquired. Horizontal mergers and acquisitions usually involve combining the operations of firms within the same general industry (Thompson, 2012). Horizontal mergers and

acquisitions provide an effective means for firms to rapidly increase the scale and horizontal scope of their core business. Combining two or more companies is an attractive strategic option for strengthening the company’s competitiveness and it also opens avenues for new market opportunities. Increasing a company’s horizontal cope can strengthen the business and increase its profitability in five ways: (1) by improving the efficiency of its operations, (2) by heightening its product differentiation, (3) by reducing market rivalry, (4) by increasing the company’s bargaining power over suppliers and buyers, and (5) by enhancing its flexibility and dynamic capabilities. In order to achieve the benefits of a horizontal integration, companies must be able to aim their strategies to one of the following outcomes: by increasing the company’s scale of operations and market share; by expanding a company’s geographic coverage; extending the company’s business into new product categories; by gaining quick access to new technologies or complementary resources and capabilities; and/or by leading the convergence of industries whose boundaries are being blurred by changing technologies and new market opportunities.For Kmart, they were able to accomplish a horizontal integration back in 2004 when they merged with Sears, Roebuck Co. Kmart and Sears are very similar companies, offering very similar types of products. Up until the past 5 years or so, this has worked really well for both companies. With the rise of Amazon, other major companies like Walmart and Target executing the same strategy as Kmart, they are driving business away from them. Like stated above, there have been 225 locations closed down just in 2017 with another 60 estimated to close in 2018. With such a decline in revenues over the years, it is not economical for them to keep stores open that are not making money. If not for the merger in 2004, Kmart would not still be around today because other companies are doing the same thing better, cheaper, and more cost effective.

6. Company Value Chain
A company’s value chain identifies the primary activities that create customer value and the related support activities. The value chain is the underlying intent of a company’s activities to do things that ultimately create value for buyers (Thompson, 2012).To be successful, a company must think about what choices it will make now and in the future. Once a company focuses on the value-creating activities, the value chain is an ideal tool for examining how a company delivers on its customer value proposition. This allows the company to look at its cost structure and ability to offer lower prices. This allows them to look at what emphasis is placed on activities that enhance differentiation.Kmart is continually making improvements to their value chain because if not, they will fall behind to the likes of their competitors. With the popularity of online shopping taking over, Kmart offers all of their products sold in store on their website. Doing this helps ensure the customer has the best experience and can access any product whether it is online or in-store. This also allows Kmart more “shelf space” because they can sell some products strictly online and keep the more popular items in store. Kmart also offers a layaway program for customers to put items on hold, make payments, and receive the item once it is paid off. Many of their competitors do not offer layaway anymore due to credit cards being readily available. Lastly, Kmart, along with Sears, offers customer a rewards program called Shop Your Way. Shop Your Way allows customers to earn 10 points for every $1.00 spent, 1,000 points equals $1 in value, and they can earn points at any of the participating locations

(“About Points”). Rewards programs are great values to customers because they can earn back money they spent, which in turn will incentivize them to shop more at Kmart

7. Outsourcing
Outsourcing, is business practice used by companies to cut costs and increase profit over the long term by sending nonessential functions on work to third parties. These third parties are usually able to specialize in that specific function better than the main company can. This makes it possibly cheaper for a business to pay a third party to perform an activity rather than performing the activity themselves. Outsourcing is important to do because it allows a business to spend more time and money on the more important functions of the business.

In Kmart’s case, they outsource much of their IT infrastructure to a third party called CSC. The Kmart help desk is also currently handled mostly by Indian workers. Although outsourcing preserves the resources that Kmart has, it has also taken jobs away from Kmart employees in America. Since Kmart is currently closing down stores in order to salvage the little “good reputation” it has left, it may need to think about outsourcing other nonessential functions in order to focus on saving the rest of its stores.

Find a real example for each term, and prepare a short narrative.

1. Employee relations
2. Fair treatment
3. National Labor Relations Board
4. Unfair labor practice strike

What are the differences between a judicial (i.e. court-ordered) affirmative action plan, and a voluntary affirmative action plan? Please give examples for each.

1. What does Puma need to do to maintain the leadership position in the Indian sportswear market?

2. How should Puma prepare to ‘fight’ the response from foreign brands in the Indian market?

3. What concepts and theories of international business are found in the Puma case? Briefly discuss each one and relate them to the case.

In September 2014, Puma retained star athlete Usain Bolt, the world’s fastest man, as brand ambassador and launched a new campaign — Forever Faster — to send the message that Puma was and would continue to be “the fastest sports brand in the world.”2 In August 2015, Puma launched its second round of Forever Faster campaigns with a new marketing line: “What are you training for?” The campaign promoted the idea of driving athletes to train harder in order to perform better. The multi-million euro campaign promoted the brand’s latest shoe with ads showing Bolt and the Arsenal football club undergoing limit-pushing training schedules over a course of four weeks to extract more from their performance.3 Puma wanted to make it clear to the world “that it needed to be seen as a major player — that life isn’t all about Adidas and Nike,” suggested Nigel Currie, managing director of the British company brand Rapport, a sports sponsorship agency.4 Puma’s global aspirations also extended to advancing its market position in India. Despite Puma’s presence in the Indian market since 2006, the sportswear brand had not realized its goal of capturing the lead position. Puma’s marketing push finally paid dividends when in June 2015, the brand recorded, for the first time, sportswear sales in India ahead of Adidas, Reebok, and Nike (see Exhibit 1).5 Puma’s success in India could be primarily attributed to the company’s marketing techniques, judicious expansion, and customer-acquisition strategy.6 Indian consumers were already changing their lifestyle in response to increased health concerns, and fitness programs were growing in popularity. The retail sportswear segment experienced unprecedented growth as a result, and companies rode the fitness wave to maximize returns on their investments. Puma had moved ahead of Adidas and Nike to become the leading brand in India, but how long would Puma be able to hold its position in the face of sustained expansion by domestic footwear brands such as Liberty Shoes Ltd (Liberty), Relaxo Footwear Ltd (Relaxo), and Paragon Footwear (Paragon)? These local brands had increased their retail footprint and were expanding their distribution networks beyond their regional presence in order to gain a substantial market share.7 Puma needed a plan to strengthen its branding and pricing strategies to stave off competition from these domestic companies. Could Puma sustain its leadership position in the years to come? PUMA WORLDWIDE Puma SE (Puma), headquartered in Germany, was considered one of the world’s leading sportswear brands. It had been designing, developing, marketing, and selling footwear, accessories, and apparels since 1948. The company categorized its product portfolio by sport (such as football, fitness and training, running, motorsports, and golf) and owned other popular brands, such as Puma, Dobotex, Cobra Golf, and Brandon (see Exhibit 2). Puma employed approximately 10,000 people and distributed its products in more than 120 countries worldwide.8 To capture a leadership position globally, Puma revised its mission statement in 2013 to “be the fastest sports brand in the world,” meaning fast reaction to new trends, reduced time to market with innovations, and speed in problem solving. The company’s repositioning initiative, such as its Forever Faster campaign, was a reflection of its new revised mission statement.9 PUMA INDIA Puma first entered the Indian market in the early 1990s with a licensing agreement with Carona. The agreement was revoked in 1998, and in 2002, Puma re-entered the Indian market by sharing its license and distribution partnership with Planet Sports. Under this model, Puma was responsible for quality and brand consistency while Planet Sports was in charge of sourcing, distribution, and retail of Puma products in India.10 India’s monthly per capita income was expected to grow by over 10 per cent in FY2015/16 in comparison to FY2014/15.11 The Indian consumer lifestyle had undergone a massive shift: disposable income levels had increased and people were adopting international brands.12 By 2006, there had been a fourfold increase in the availability of international accessories and shoe brands in India.13 To leverage this growing trend and strengthen its brand position in India, Puma established its first executive outlet in the country in 2006, manufacturing and distributing apparel, footwear, and accessories across multiple cities in the country.14 After three and a half years of operations, Puma reported a profit in 2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for the first time ahead of its competitors Adidas, Nike, and Reebok.17 SUCCESS MANTRA Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to Puma’s lead in India.18 Retail Strategy Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma reported 13 per cent same-store sale growth in 2014 as compared to 2013. In addition to maintaining tight control over its distribution network, Puma adopted a clever vendor engagement. When Reebok closed 300 of its 900 stores, retailers were handicapped. Puma leveraged this opportunity to gradually grow its partnership with Rishabh Sports Station — Reebok’s biggest vendor — and with other vendors in order to fill the market gap left by Reebok’s absence.21 Product Portfolio With the rise in disposable incomes, change in consumer preferences, and escalating health awareness, sports apparel and equipment companies were launching new products and models to satisfy growing Indian consumer demand. To take advantage of this opportunity, Puma introduced two of its leading shoe brands — Mobium and Faas — to Indian consumers in fiscal year FY2014/15. Mobium Ride, the average price for a traditional, men’s athletic jogging shoe, was priced at US$138.04; the model Faas 600S was priced at US$122.7022 — comparable to pricing by Nike and Adidas. Puma also launched the Nightcat Powered edition under its Mobium brand, and introduced its Ignite brand of running shoes and Alexander McQueen’s stylish global collection to Indian consumers.23 Puma planned to add other brands from its global portfolio to India’s product portfolio in the coming years.24 To build strong brand loyalty, Puma focused on developing products that fit well, were light, and moved with the person wearing the product. The style quotient was always a crucial parameter in Puma’s product mix. Consumers were central to Puma’s strategy; hence, after assessing a demand for flip-flops and sandals, Puma introduced a collection of stylish wear exclusively for the Indian market. Puma sold over 5 million pairs of flip-flops and sandals in FY2014/15.25 Promotional Strategy Puma built its brand on the pillars of a desirable product mix and engaging marketing.26 In addition to being known for sports apparel, Puma gradually built its image as a fashion inspirational brand with dynamic designs and stylish products. Consumers associated the fashion items with unchallenged passion, determination, and sentiment for sport.27 As part of its initiative to increase brand awareness, the company launched a Forever Faster campaign in partnership with the Indian Super League football franchise.28 This tie-up fit well with Puma’s plan to focus on a football wear collection and concentrate its marketing efforts around football.29Puma had Usain Bolt, a world-record holding sprinter and Puma’s brand ambassador, launch the Forever Faster campaign in India in September 201430 to signal the brand’s seriousness about making Puma the fastest sports brand in India. To raise the consumer engagement level, Puma invested in a food, drinks, and entertainment venue — the Puma Social Club. The club was located in the poshest area of Bengaluru and was a hit among the local millennials.31 In addition, Puma put together a compilation of music and a concert series under Puma Loves Vinyl — a campaign to connect with consumers at a personal level.32 Price With growing competition, Puma had two options to push its sales further: the company could use a discounting model, like its competition, or continue on the path of sustained and slow growth.33 The company decided to persist with the gradual growth strategy, which brought Puma the success it sought. To make the brand accessible to more customers, Puma lowered the entry barrier with low-priced entry products. Puma’s products ranged from an affordable $25 to $230.34 Customer Focus Puma focused on continuous monitoring and improvement of the customers’ store experience. The brand had a huge fan following, particularly among the youth. Being consumer-centric, Puma developed its products after identifying these consumers’ needs. The consequent launch and success of flip-flops and sandals exclusively for the Indian market validated Puma’s effort and commitment.35 In line with its focus on India, Puma launched an exclusive fitness shoe for women, Pulse XT, in the summer of 2015. Abhishek Ganguly, managing director of Puma India, declared, “We have planned a very aggressive autumn and winter and will continue to launch global innovative technology-oriented products suitable for India. You will see a lot more of us.”36 E-Commerce Model Worldwide use of smartphones and tablets to access the Internet drove the e-commerce model on an unprecedented growth trajectory. With all companies trying to gain a share of the online market, Puma, too, built its presence through popular marketplaces such as Amazon, Jabong, Snapdeal, and Flipkart. In late 2013, former managing director of Puma India, Rajiv Mehta, indicated that selling Puma’s products online was a marketing advantage the company wanted to exploit: Between 16 [and] 25 years of age, a lot of people are shopping online. Because we are a lifestyle brand, consumers end up shopping multiple times for a lifestyle product than a performance product which lasts for some time. . . . 37 Online is a lot more dynamic. If I want to launch a new shoe, all I have to do is make sure it’s in my warehouse and take the graphic, which can happen in two hours. Our online business is as good as a Brigade Road store in Bangalore and is one of the largest store equivalents in terms of sales. Also, it's a marketing advantage, if not anything else.38 To curb heavy online discounts, Puma excluded online franchise operations.39 Puma earned a 15 per cent revenue share from its online segment in 2014. To extend its online reach, Puma planned to boost its online presence and strengthen the content and offerings of its online portal, Puma.com.40 INDIAN SPORTSWEAR MARKET The sportswear industry was defined as an aggregation of performance, outdoor, and sports-inspired clothing and footwear.41 All kinds of dresses, shorts, trousers, tops, coats, jackets, track suits, athletic sets, swimwear, underwear, hosiery, clothing, and accessories (including gloves, headwear, and scarves) were included under the clothing segment. Children’s, men’s, and women’s footwear — sports shoes, sandals, pumps, and more — were included under the footwear category.42 The sportswear industry in India was valued at $3 billion in 2013 and was predicted to reach $4.9 billion by 2018.43 The industry grew 25 per cent in 2013 and was expected to increase at a compounded annual rate of 10 per cent from 2013 to 2018. Within the sports apparel segment, current sales value of performance apparel grew by 20 per cent; outdoor apparel, by 28 per cent; and sports-inspired apparel, by 18 per cent, in 2013 (see Exhibits 2 and 3).44 MAJOR COMPETITORS Adidas Adidas had ruled the Indian sportswear industry for more than a decade. The increasing presence of the brand across major Indian cities and its tie-up with the Indian cricketer icon, Sachin Tendulkar, for advertisements helped the firm become a sportswear leader.45 To further increase its market presence across the world, Adidas acquired Reebok in 2005 for $3.8 billion.46 However, since 2012, Reebok’s Indian arm was tangled in various commercial irregularities.47 Owing to the irregularities in the Indian unit, Adidas reported a loss of €125 million (roughly equivalent to ?8.7 billion or US$135 million in 2005) from its global profits. Further losses of €70 million (?4.88 billion or US$76 million in 2005) were estimated if the case was not handled soon.48 The failure to leverage the Reebok brand added to Adidas’ financial losses; in 2015, Adidas lost its position as market leader. Adidas indicated it might sell Rockport, Reebok’s shoe brand, to regain its position in India.49 To start a fresh chapter, in September 2015, Adidas identified Ranveer Singh as brand ambassador for its streetwear label Adidas Originals,50 leveraging the actor’s stardom and his connection with youth. Reebok Although a relatively small player, Reebok had an established market in key regions such as North America and India. In order to grow its market presence, Reebok was purchased by Adidas in 2005 for US$3.8 billion. In India, Reebok targeted the 15 to 50 age group and promoted its brand with advertisements targeted at cricket.51 However, in 2012, Adidas announced that it had uncovered several incidents of commercial irregularities at Reebok’s India unit. As a consequence, Adidas closed a substantial number of Reebok outlets.52 Reebok’s struggles resulted in poor financials in 2013.53 In a bid to regain its leadership position in sportswear in India, Reebok planned to launch more than 100 of its FitHub54 stores, targeted towards urban consumers.55 Nike Nike had an established base in India. The company had a strong year in 2013 with respect to returns and investments. The company increased its investment in brand promotions with targeted advertisements and official sponsorship of the Indian cricket team. In addition to brand promotions, Nike strengthened its distribution network across smaller cities with a larger presence in multi-brand outlets.56 To drive its sales further, Nike offered various seasonal discounts and offers to lure customers. Instead of investing in an online retailing site of its own, Nike established an online presence through tie-ups with several marketplaces, such as Snapdeal, Flipkart, Jabong, and Myntra.57 Although Nike did not market its own products online, it did use its website to keep fans abreast of the latest product launches and store releases.58 Domestic Companies In addition to global sportswear brands, India had an established presence of popular regional brands such as Liberty, Lancer, and Relaxo. Affordable sportswear products from regional brands were gaining popularity among Indian consumers. These brands slowly bridged the gap between the domestic and international brand sales by introducing new designs and colors as part of their product portfolios. Leading footwear manufacturers, such as Relaxo and Liberty, launched women’s footwear designs to target a growing market need. Domestic companies invested in increasing their penetration across India and launching desired brand variants within different price platforms in order to tap into the burgeoning opportunity59. THE CHANGING INDIAN CONSUMER India's economic growth and rising household incomes were expected to take consumer spending to a level of $3.6 trillion by 2020. Food, housing, consumer durables, transport, and communication were expected to reap the most of consumer spending. The Indian consumer market was dominated by the younger generation and was becoming increasingly sophisticated and brand conscious. Young upper-middle-class consumers were looking beyond the utility aspect of a product to seek brand and lifestyle statements connected with the product.60 India’s consumer confidence continued to be the highest globally and had improved more in the second quarter of the 2015 calendar year due to a positive economic environment and low inflation.61 There was a visible change in consumer attitude towards sports and fitness as a result of an increase in health awareness.62 With the inclusion of physical exercise in an Indian’s daily regime, many state governments were building parks in urban locations to cater to the demand for morning and evening walks.63 Gyms and health clubs in India were taking advantage of the opportunity and offering a variety of fitness programs, such as yoga, dancing, spinning, aerobics, and more.64 With the growing presence of fitness and health clubs and gyms in metropolitan areas and top-tier cities in India,65 the sportswear industry was set for unprecedented growth.66 Additionally, an increasing number of sporting events, such as the Indian Premier League and marathon events, fostered sports growth in India.67 PUMA’S DILEMMA The evolving consumer landscape, rising e-commerce opportunities, and increasing health awareness had fueled massive growth in the sportswear industry. After continuous efforts over eight years, Puma was at last in the number one brand position in India, taking the lead from Adidas.68 However, although Puma led Adidas and Nike in total sale volumes, there was only a narrow differential margin among the three. This implied that the 1–2–3 positions could undergo reshuffling anytime in the future.69

Discuss with examples, the features of the Uses and Gratifications Theory of communication.

Choose a leader whose actions you admire - someone you look up to or think of as a hero. Share in the discussion who it is and what qualities of this person you wish to emulate. Please elaborate on the skills, qualities, habits, etc. that you recognize in this individual.