Learning Journal Unit 5:

SWOT Analysis of Athlete's Warehouse

University of the People

BUS 1101 Principles of Business Management

Jose Antony, Instructor - Senior

July 19, 2023

 Athlete's Warehouse (A) is a sports shoes and clothing business venture founded by Colin

and Ed Power in Grand Falls, Newfoundland. With their athletic experience and a desire to

provide quality products and expert assistance, they embarked on their journey. This SWOT

analysis evaluates the strengths, weaknesses, opportunities, and threats for Athlete's Warehouse,

shedding light on key aspects of their business.

Strengths:

Expertise in Athletics

Colin and Ed Power possess extensive knowledge and experience in athletics. This gives

them an advantage in assisting customers to select the right athletic products. The kind of advice

they can offer to customers is a strong competitive advantage for Athlete's Warehouse, as it

differentiates them from other stores in the area that do not have staff as knowledgeable as them.

Specific Target Market

Athlete's Warehouse targets a specific market segment consisting of individuals between

the ages of 13 and 34 who are engaged in various athletic activities. This strategy of focusing on

a specific market segment enables them to tailor their product, services and marketing strategies

to meet the specific needs and preferences of their potential customers leading to higher

customer satisfaction and loyalty (Carpenter et.al, 2010).

Unique Product Mix

Athlete's Warehouse focuses on quality athletic footwear and clothing. According to their

research, none of the other local stores have that kind of specific product pair available. By
offering, a specialized set of goods, they can set themselves apart from other general sportswear

stores. This product mix, along with their knowledgeable customer service ensures that

customers receive personalized advice for their specific requirements.

Weaknesses:

Limited Financial Resources

The Power brothers' financial resources may be limited. Ed expresses concerns about

risking his retirement savings. Therefore, this fear could limit their ability to take risks and invest

in marketing campaigns, store renovations, and inventory which could potentially impact their

competitiveness and growth potential (Carpenter et.al, 2010).

Limited Brand Recognition

As a new business, Athlete's Warehouse may lack brand recognition and customer

awareness. This could pose a challenge in attracting customers away from established

competitors. This poses even more challenge as the business has financial constraints that could

hinder them from spending on marketing and building brand awareness.

Competitive Landscape

Athlete's Warehouse might face competition from three existing sporting goods stores

that offer similar products. Even if they are confident in the quality of their products and

expertise, it would be challenging to gain and sustain a market segment in a competitive market

which might require creative marketing strategies.

Opportunities

Growing Market

The positive economic conditions in the Grand Falls area present an opportunity for

Athlete's Warehouse to tap into a growing market. With increasing incomes and a population

segment focused on health and wellness, there is potential for the store to attract and retain a

significant customer base.

Unmet Customer Needs

According to Colin, the existing sporting goods stores in the area, such as B&B Sports

and Sports Experts, may not provide the level of expertise and specialized product offerings that

Athlete's Warehouse aims to deliver. By addressing this gap in the market, the store can position

itself as a destination for customers seeking quality athletic footwear and clothing with expert

assistance.

E-commerce and Online Presence

Investing in an online platform can extend their reach beyond the physical store, enabling

them to reach customers from neighbouring towns and provide a convenient shopping

experience. An online presence can also facilitate effective marketing and customer engagement.

Threats:

Intense Competition

Athlete's Warehouse faces competition from existing sporting goods stores, as well as

other retailers offering lower-priced alternatives. The presence of established competitors like
B&B Sports and Sports Experts may make it challenging to capture a significant market share,

requiring effective differentiation strategies.

Economic Uncertainty

Despite the positive economic conditions, the potential for economic downturns or

fluctuations could still impact consumer spending habits. This could affect sales and overall

business performance. Since the Athlete’s Warehouse have financial constraints in the first place,

this could be a difficult challenge for them to manage.

Cash Flow Challenges

Colin's previous experience with The Fitness Factory revealed cash flow challenges,

particularly after the initial sale of memberships. If similar issues arise with Athlete's Warehouse,

it could create financial instability and hinder the business's ability to cover operating expenses

and invest in necessary growth opportunities.

Overall Evaluation:

Based on the SWOT analysis, Athlete's Warehouse exhibits several strengths, including

knowledgeable staff, a niche market focus, and a unique product mix. However, there are also

weaknesses related to limited financial resources, competitive landscape and limited brand

recognition. The opportunities lie in the growing market, unmet customer needs, and potential

for expansion online. The threats include intense competition, economic uncertainty, and cash

flow challenges. To succeed, Athlete's Warehouse needs to leverage its strengths, address

weaknesses, work on making good use of opportunities, and implement effective strategies to
mitigate threats. A strong emphasis on customer service, targeted marketing, strategic

partnerships, and financial management will be essential for the store's success.

Reference

Carpenter, M., Bauer, T., & Erdogan, B. (2010). Management principles, v. 1.1.

https://2012books.lardbucket.org/books/management-principles-v1.1/index.html