UNIT 5 - Written Assignment. Athletes Warehouse PDF

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QUESTION: Recall that in a SWOT analysis, the Strengths and Weaknesses are internal. This means that the organization has more control over these factors. The opportunities and threats are external, meaning that they have little to no influence over them. Read the following case study and provide three strengths, weaknesses, opportunities, and threats (each) for Athlete’s Warehouse. Provide an analysis of each of these, including the justification for why you chose them. ANSWER: SWOT is a strategizing analysis which every business management need to put into consideration before embarking in rolling out plans/strategies for the business. Swot plays a very vital role in analysing the factors that influences the outcome of a business as in the case of the Athletes Warehouse. As the acronym stands for Strength, Weakness, Opportunities, and Threats. We will be looking on how this characteristics shaped the business idea of Colin and his brother Ed. STRENGTH. Firstly, Colin was a PhD holder in Physical Education, meaning he had a vast amount of knowledge on sport shoes and clothing. His brother Ed was himself an active athlete which also meant he knew a lot about sport shoes and clothing as well. This gave both of them a massive advantage over other available competitors. Secondly, both brothers had earlier organised a local track club in the fall of 1982 which was aimed to encourage young people from all over the schools to participate in tract and field. This event can be seen as a very smart marketing strategy for their business idea. Just as in the case of Coca-Cola. The best place to target big number of sport enthusiasts is of course at sports events. And the fact that their target market was youths of age 13 and 34 made this a valuable strength going into the business.

Finally, believing that their product standard and quality will set them apart plus the capability to provide expert advice to customers with regards to purchasing of athletic shoes and clothing was also a massive strength over their competitors. WEAKNESS. Firstly, even though Colin and Ed had plans to deal only on quality shoes and clothing, they faced a major competition from already existing businesses who dealt on sport merchandise and have been in existence long before them. Secondly, while Colin who was 16 years younger than his brother Ed was full of enthusiasm, confidence, and aggressive with the whole business plan and optimistic that it will be a success, 46 years old Ed already had his sight set on his retirement plans and savings. Ed was sceptical about the whole idea because his retirement money was being put at risk. Finally, having the required capital and inventory going into a business is always a big plus. That wasn’t the case of the brothers and to make matters worst, big manufacturing companies like NIKE would only accept Cash On Delivery ( COD ) for the first order. OPPORTUNITIES. Firstly, Colin to an extent understood the need for quality sport shoes and clothing among youths. The fact that none of the already existing businesses didn’t offer quality shoes and clothing and expertise as well, have him a massive advantage over others. Secondly, location was also a major factor for the Athlete Warehouse. Colin made good use of his experience and the information from statistic Canada in choosing the suitable location where their business will fend off competitors and as well reachable to his target customers/market.

Finally, another market factor/opportunity that proved vital was the fact that according to statistic, 36% of the population was age 13 to 34, the group he had determined to make his primary target market. After due calculation and estimation, Colin was able to project that first year sales on both locations should be above $120,000. This means his business idea and strategy will achieve his target goal. THREAT. Firstly, the first threat that Colin foresaw was the need of having constant staffs at the business. Due to his participation in his high school contract, Colin could only afford 30 hours a week and Ed on the other hand could afford only 10 hours a week for 50 weeks. Secondly, other threats that were beyond their control and could jeopardise their strategy were cost for advertising, telephone, insurance, office and bookkeeping, plus all other major cost. This proved problematic giving the fact that, the brothers didn’t have all the required capital for the business. Finally, though the brothers felt that their product quality and Knowledge would provide competitive advantage, they were aware of the threats posed by the three sporting goods stores in Grandfall and Windsor. Other clothing and shoes stores had some lower quality and lower price lines that are similar to the selection proposed by Colin and Ed. This proved to be their biggest threat going into the business....