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Written Assignment Unit 5 Bus

Athlete's Warehouse is a new sports clothing and footwear company in Grand Falls, leveraging strengths such as community connections and expertise in sports, while facing weaknesses like limited financial resources and management capacity. The company has opportunities for growth due to favorable economic conditions and a lack of direct competition, but it also faces threats from established outlets and potential economic downturns. A careful evaluation of the SWOT analysis indicates that while risks exist, the potential rewards may justify the venture if managed effectively.

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Christopher Catino
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13 views

Written Assignment Unit 5 Bus

Athlete's Warehouse is a new sports clothing and footwear company in Grand Falls, leveraging strengths such as community connections and expertise in sports, while facing weaknesses like limited financial resources and management capacity. The company has opportunities for growth due to favorable economic conditions and a lack of direct competition, but it also faces threats from established outlets and potential economic downturns. A careful evaluation of the SWOT analysis indicates that while risks exist, the potential rewards may justify the venture if managed effectively.

Uploaded by

Christopher Catino
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Written Assignment Unit 5

1. BUS 1101-01 - AY2024-T5

SWOT Analysis of Athlete's Warehouse.


Athlete's Warehouse, a new sports clothing and footwear company in Grand Falls, offers a

unique market potential that is supported by strategic internal competencies and external

opportunities. A full SWOT analysis is provided below, outlining the company's strengths,

weaknesses, opportunities, and threats based on the case circumstances (Howse,1992).

Strengths

1. Expertise and Passion in Sports: The founders, Colin and Ed Power, are not only

knowledgeable about sports but also passionately involved in it. Colin’s background

as a physical education teacher and his involvement in local sports through coaching

and organizing a track club add credibility and depth to the business’s sports-related

ventures (Howse,1992).

2. Existing Supplier Relationships: Having already established a network of supplier

contacts during his time in Ottawa, Colin possesses a direct advantage in acquiring

inventory, potentially at favorable terms, despite some new suppliers requiring COD

terms.

3. Community Connection and Local Influence: Colin’s engagement with the local

community through the YMCA and the fitness center, along with Ed’s recognition as

a former athlete, positions them as reputable figures. This local connection could

translate into customer loyalty and trust (Howse,1992).

Weaknesses
1. Limited Financial Resources: The primary concern is the financial strain, especially

considering Ed’s apprehension about risking his retirement savings. The initial capital

required is significant, and their financial stretch is evident with the COD terms

required by some suppliers (Howse,1992).

2. Management Capacity: Colin’s commitment across multiple roles—managing the

fitness center and potential involvement in the new store—might strain his ability to

effectively manage all operational aspects.

3. Previous Business Performance: The closure of the first Athlete’s Warehouse

location due to poor sales and management issues could be seen as a lack of proven

business acumen in sustaining retail operations (Howse,1992).

Opportunities

1. Economic Stability and Local Development: Grand Falls shows promising

economic indicators such as low inflation and high family income, coupled with

infrastructural developments like the $2 million renovations at the local health centre.

These factors generally predict a stable consumer spending environment

(Howse,1992).

2. Market Demand and Lack of Direct Competition: The target market’s

demographic and the absence of competitors offering a similar high-quality product

mix present a significant opportunity to capture the market share.

3. Expansion of Product Lines and Services: There’s potential to expand offerings at

the new location based on observed market needs and trends, which could include

exclusive partnerships or launching private labels (Howse,1992).

Threats
1. Competitive Pressure from Established Outlets: Even though direct competition is

limited in terms of product quality, the presence of three other sporting goods stores,

including a franchise, could impact market entry and price dynamics.

2. Economic Downturns or Unforeseen Financial Challenges: Changes in the broader

economic environment could affect consumer spending, especially on non-essential

goods like sports apparel and luxury fitness wear.

3. Operational Risks in New Location: Choosing a new location involves inherent

risks, such as inadequate foot traffic and visibility, especially given the poor

performance of the previous store due to its location.

Overall Evaluation

Athlete’s Warehouse stands at a strategic juncture with substantial internal strengths like

market knowledge, community ties, and sports expertise that it can leverage to carve out a

niche in the Grand Falls market. However, financial constraints and previous business

challenges underscore the need for careful planning and robust management. The external

environment appears favorable with significant opportunities for growth and expansion,

provided that the threats of competition and operational risks are effectively managed.

This SWOT analysis suggests that while there are considerable risks involved, the potential

rewards could justify the venture, especially if the business can capitalize on its distinctive

strengths and emerging local market opportunities. The decision to proceed should involve

securing additional financial safeguards and perhaps exploring more conservative growth

strategies to mitigate the identified weaknesses and threats.

Reference: Howse, B. (1992). Athlete's warehouse (A). Atlantic Entrepreneurial Institute.

Athlete's warehouse (A),

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