Can Reebok Regain Its Balance?

Last January, Reebok International Ltd. launched a sneaker that it hoped would be a slam-dunk. Called the Shaq Attaq, it was endorsed by the Orlando Magic's sensational rookie Shaquille O'Neal. And it seemed tailor-made for teens. But the Shaq Attaq arrived in stores with a resounding thud. The problems: The sneakers were white, with light blue trim. And they cost $130. But black shoes were the hot look, and customers wanted them for under $100. In the first six months of 1993, sales of Reebok's basketball shoes fell 20%. Says Reebok fitness President Angel Martinez of the Shaq Attaq launch: "It was a comedy of errors."

It was also vintage Reebok. Ever since Nike Inc. usurped the company as the top maker of athletic shoes in 1989, Reebok has been flailing wildly in attempts to get back on top. Half a dozen ad campaigns have fizzled. It has been plagued by poor designs. And it missed a key fashion shift toward outdoor shoes that began a couple of years ago.