Athlete Warehouse Case Study
SWOT analysis is a technique or a study that is taken by organizations to know their Strengths, Weaknesses, Opportunities, and Threats.
Referring to the Case Study of Athlete Warehouse, The Following are examples of SWOT (Strengths, Weakness, Opportunity, Threats) for the study case:
• Strengths
a) Business management experience
b) Existing Stock ($12000 worth of Inventory)
c) Credit facility from other suppliers
• Weakness
a) No Working Capital
b) Selling average quality products expensive
c) Poor Marketing methods
• Opportunities
a) Ready Market
b) The business is located in a Medium to high income earners community
c) Low Swelling rate in the territory
• Threats
a) Large and Seasoned Competitors
b) Competitors offering the same product cheaper
c) Expensive Operational cost
When the power Brothers were setting up their business they faced many challenges from expensive rates, Lack of working and competing with large, seasoned and well oiled running competitors. Relaying on their business management experience and being active them self they knew that the most active age group is between 15 and 34, in which that age range became their target market and clients. Colin was persuading his brother Ed to use his retiring package income to seed into the business in an effort to boost the business though Ed was hesitant because he knew that if the business didn’t take off as expected he would end up without retiring package.
a) Business management experience
The experience helped Ed and Colin to analyze their business and to make sound decisions on how they were going to run their business and survive the competition.
b) Existing Stock ($12000 worth of Inventory)
When you have stock, clients get items close by considerably quicker. Notwithstanding when clients don’t have a prompt requirement for the item, when the choice to purchase is made, the client likes to exit with the item close by. This is a crucial piece of value client benefit.
c) Credit facility from other suppliers
Credit often cost more than paying money. More different charges might be added to the original price though using credit facility can help the company by not using money but relaying on the sales which is better than using money. Credit can help in the event that you require cash for crises, for example, joblessness, disease, demise, or property misfortune
d) No Working Capital
Not having enough working capital affects the company in a negative way it cripples the company growth and expansion and it also leaves the company in debts.
e) Selling average quality products expensive
Selling average quality products expensive cannot make you competitive, average products means most of your competitors may also lay their hands on the product and offer it for far less than what you are offering it for and you end up losing business.
f) Poor Marketing methods
Not giving enough information to the customer will result in a loss, you will not sell anything, looking at the case study I did not see were company advertised.
g) Ready Market
Athlete Warehouse was not trying to invent a wheel, they where players already in the market only what they needed to do was to offer better quality products and a cheaper price.
h) The business is located in a Medium to high income earners community
The community also determine the direction you business will take. In an up market environment more sales are going to be done by that the company will make more profits.
i) Low Swelling rate in the territory
Having low traffic in the business area meant less people would approach you business look at the products even buying the shoes as in the case of Athlete Warehouse Case Study
j) Large and Seasoned Competitors
These large and seasoned competitors need a very good strategy because without one it will be impossible to do business near the areas the will be located e.g. you can’t sell Coffee near star bucks or Hamburgers near McDonalds
k) Competitors offering the same product cheaper
l) Expensive Operational cost