try. Timberland, for example, markets "rugged" footwear designed to appeal to consumers who want to exhibit an active lifestyle focused not on sports, but on outdoor activity. LA Gear has also tried to market in this product area, but with limited success. The company has recently discontinued most of its nonathletic shoe lines and reduced its overall product offerings in this market (LA Gear, Inc. 1).
Nike dominates the athletic footwear industry, although Reebok is also a strong participant; LA Gear has a much smaller share of the market, along with other competitors such as Adidas. Nike has a strong financial position relative to the industry as a whole, with higher gross margins and significantly higher net profits than its competition. Nike also has the advantage of having strong brand recognition for its products, a position which it intends to maintain through its use of sponsorship of international soccer teams who
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