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Athlete’s Warehouse: A Case Study of BUS1101

Agung Rahmadi

University of The People

BUS1101: Principles of Business Management

Jose K Antony

July 19, 2023

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Athlete’s Warehouse: A Case Study of BUS1101

In February 1986, Colin and Ed Power went on their daily training run on a chilly

day. They are involved in discussing the prospective business during training runs. Colin and

Ed Power discussed Athlete's Warehouse's objectives in the future. Colin and Ed Power want

to start Athlete's Warehouse, which focuses on selling high-quality athletic footwear and

athletic clothing.

In order to analyze the business prospects of The Athlete's Warehouse, we will use the

SWOT analysis method as an appliance to solve the issues. SWOT analysis is an acronym for

strengths, weaknesses, opportunities, and threats. SWOT analysis is a framework to assess a

company's competitive situation and create a strategic plan (Kenton, 2023).

Strengths

            Colin Power, one of the Athlete's Warehouse founders, has a supporting background:

he was educated as a Physical Education teacher and also at one time held Newfoundland's

record for the marathon. His brother, Ed Power, who is also the founder of Athlete's

Warehouse, is a professional athlete who played in the Senior Hockey League. The incredible

founders' experience and background in the sports field provide a lot of advantages to the

company's goals and objectives. The Athlete's Warehouse has also earned credit-worthy

badges from big company suppliers like Nike, which is also able to provide high-quality

products to the Athlete's Warehouse to sell to customers.

Weakness

            Ed Power was investing his retirement money to provide financial support to the

company. The measures taken by Ed are too risky due to the fact that the business field is full

of probability. In addition, the Athlete's Warehouse requires numerous funds to renovate the

store it rented and to fulfill the Athlete's Warehouse store inventory. Moreover, the Athlete's
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Warehouse urgently needs some employees to take care of day-to-day operations in the store.

Thus, those urgent issues are able to induce additional company expenses.

            Opportunities. The Athlete's Warehouse store in Grand Falls has an appropriate

trading area. The Athlete's Warehouse store in Grand Falls was located in a trading center

that has at least 50,000 people involved in retail trading transactions. In addition, at that time

in Newfoundland, the annual inflation rates were down, and the average incomes of families

were up and held at the fifth highest of the towns in the Province. Moreover, the Athlete's

Warehouse has the option to relocate its store to another location if the one they are renting

does not provide significant profits.

            Threats. Athlete's Warehouse has several threats, such as other competitors who also

sell sports products. In addition, Sports Experts became a threat due to they offered a full line

of sporting equipment, hard products, and soft products. The measures taken by Sports

Experts are able to threaten Athlete's Warehouse due to Sports Experts offers a full line of

sporting equipment and is able to attract consumers to shop at Sports Experts. Moreover,

Sportstop is also able to be a threat that is able to decrease Athlete's Warehouse's revenue due

to Sportstop selling very similar sports products.

            According to the results of the SWOT analysis in Athlete's Warehouse, Athlete's

Warehouse has several strengths that will help its company grow and accomplish its goals

and objectives. However, Athlete's Warehouse also has several weak points that are able to

decrease the company's performance, especially in financial terms. In addition, Athlete's

Warehouse has several opportunities to improve company profits that are able to recover its

weaknesses in financial terms. Athlete's Warehouse also had several threats. However, Colin

and Ed Power believe those threats would not be able to affect their business due they believe

they are capable of competing with their competitors.

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References

Kenton, W. (2023, June 19). SWOT Analysis: How To With Table and Example.
Investopedia. https://www.investopedia.com/terms/s/swot.asp

Case Study: Howse, B. (1992). Athlete's warehouse (A). Atlantic Entrepreneurial Institute.
https://my.uopeople.edu/pluginfile.php/546090/mod_workshop/instructauthors/Unit
%205%20Case%20Study%20--%20Athlete%20Warehouse.pdf