1 / 14

Dick’s Sporting Goods

Dick’s Sporting Goods. Case Analysis. Executive Summary.

Télécharger la présentation

Dick’s Sporting Goods

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.


Presentation Transcript

  1. Dick’s Sporting Goods Case Analysis

  2. Executive Summary • Typically when you are given a case, there is a particular opportunity or problem identified in the case or in the discussion questions that will become the focus of your analysis – let’s assume here that Dick’s is thinking about getting into the gym business and establishing a national chain of full-service gyms • Then you would briefly discuss the following: • Major issue facing Dick’s Sporting Goods • whether they should enter the gym business • Summary of Dick’s current strategy and financial position • Sell sporting goods apparel and equipment at higher than average margins; financially stable at the moment, good growth over the past few years • Recommendations • NO!

  3. Business Model • Full-line sporting goods retailer • Focus on high-priced, brand name products • Higher margins • Excellent customer service • First-class inventory management system

  4. General Environmental Forces • Political/economic – in current economy, consumers are looking for low prices; this is not Dick’s focus; new President seems to be a fitness fanatic – could encourage others to get interested • Sociocultural – the US has become increasingly concerned about its health and ways to improve it, this could prove beneficial to Dick’s • Each of these forces would help Dick’s from both a supplier of apparel and equipment as well as a gym

  5. General Environmental Forces • Demographic – an aging population that is much more health conscious than previous generations; the rise in obesity should encourage consumers to look for ways to combat it • Legal forces – there is discussion of a bill that would allow taxpayers to deduct the costs associated with preventive health measures, such as exercise; there is also a campaign to promote physical activity guidelines • Again, each of these forces could help their existing business as well as the proposed business venture

  6. Specific Environmental Forces • Suppliers – there are many suppliers of fitness apparel and equipment, but it is dominated by a handful (Nike, Adidas, Titleist, Reebok, etc.), these suppliers may have limited bargaining power over Dick’s • Customers – Dick’s likely appeals to middle and upper class customers; however such customers are more willing today to shop for bargains, and they do have many choices, as shown below

  7. Specific Environmental Forces • Competitors – for sporting goods: Sports Authority (privately held), Cabelas, Hibbett Sports, Big Five, Wal-mart, and Foot Locker are among its key competitors; in addition, there are specialty sporting goods stores (NikeTown, Adidas stores, Reebok stores, etc.) – while Dick’s may be among the most profitable, it is important to realize that consumers do have many choices; Dick’s will not likely try to get in a price war to compete, but rather differentiate itself through its product selection and customer service • For gyms: Gold’s, Planet Fitness, Bally’s, Curves, YMCAs

  8. SWOT • Strengths • brand recognition • Higher profit margins • Customer service • Inventory management • Knows the sporting goods business!

  9. SWOT • Weaknesses • Seasonal nature of business (4th quarter is crucial) • No experience running a gym

  10. SWOT • Opportunities • Dick’s strong financial position enables it to survive and grow during a tough economy • An aging population interested in health • The obesity crisis • A President committed to fitness • Congressional Activity related to health and fitness • Some national gyms are experiencing financial and customer retention problems

  11. SWOT • Threats • The economy • Shift in consumer spending habits • Competitors (Wal-mart) • Starting up such a big venture could divert their resources and attention away from their core capabilities

  12. Financial Analysis • Strong growth in Sales and income over the past three years (Yahoo Finance) • Strong cash position • Higher than industry average profit margins (Yahoo Finance)

  13. Gym Industry Analysis • Include some stats on the key players and trends • Gold’s • Planet Fitness • City Sports Clubs • Bally’s • Fitness Together!!! (YEA!!!)

  14. Recommendations • Do not enter into the gym market • Quite competitive • Could dilute their high-end brand image • Not a core competency

More Related