Sports direct financial situation analysis and
Sports direct financial situation analysis and
This makes its brand awareness high. Sports Direct International Plc has to build internal feedback mechanism directly from sales team on ground to counter these challenges. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning. This has reduced the costs of transportation, which is beneficial for Sports Direct International Plc as it will lower its overall costs. What's swot in the strategic analysis? Social Media: there has been an increase in the number of social media users worldwide. Weaknesses A high proportion of property in use by Sports Direct International Plc is on rent, and rental charges need to be paid. It also involves estimating the probability of an event occurring in the external environment. Acquiring brands or joint ventures with companies in those markets should provide Sport Direct with opportunities to reach out to customers across different segments. Investment in Research and Development is below the fastest growing players in the industry. For instance, it was one of the employers identified by the UK government for failing to pay workers the minimum wage. Rented Property: A significant proportion of the property that Sports Direct International Plc owns is rented rather than purchased.
It has been successful in past, in most of the initiatives it has taken in new markets. Dealer Community: Sports Direct International Plc has a strong relationship with its dealers that not only provide them with supplies but also focus on promoting the company's products and training.
Sports direct annual report 2018
Wilson, R. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. Suppliers: The bargaining power of suppliers has increased over the years with the decrease in the number of suppliers. Strategy is about making choices and weakness are the areas where a company can improve using SWOT analysis and build on its competitive advantage and strategic positioning. The matrix is only a starting point for a discussion on how proposed strategies could be implemented. Dyson, R. People are often not appraised for their performance. This is a threat to Sports Direct International Plc as it can lose its customers to these new entrants. For example, a large number of outlets can be a strength in a growing economy or a weakness if the economy is going through a recession. Sports Direct International Plc has a well-established IT system that ensures efficiency in its internal and external operations. Good Returns on Capital Expenditure — Sports Direct International Plc is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. The US market for sports, casual wear and camping equipment is massive; hence a massive opportunity for the company. Blackwell: Oxford. Rented Property: A significant proportion of the property that Sports Direct International Plc owns is rented rather than purchased. There are certain interrelationships between the internal and external factors that the SWOT Matrix overlooks.
Dyson, R. Weihrich, H. Substitute products available are also increasing, which is threat collectively for the whole industry as consumption of current products decrease. Sports Direct International Plc can earn revenue by opening online stores and making sales through these. European Journal of Forest Research, 3 It operates throughout the UK, and in locations in Europe, the U.
A few products have a high market share, while most of the products have a low market share. This is an opportunity for Sports Direct International Plc as its cost of inputs would remain low for the next two years.
Even though Sports Direct International Plc is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. Market Research: Sports Direct International Plc has not conducted market research within the market that is serves since the past 2 years.
Marketing strategy and competitive positioning. This will reduce the costs incurred on inputs for production.
Sports direct annual report 2019
Weaknesses of Sports Direct International Plc Research and Development: Even though Sports Direct International Plc is spending more than the average research and development expenditure within the industry, it is spending way less than a few players within the industry that have had a significant advantage as a result of their innovative products. Rented Property: A significant proportion of the property that Sports Direct International Plc owns is rented rather than purchased. E-commerce: There has been a new trend and a growth in sales of the e-commerce industry. Fuel price has risen in recent years making inputs expensive. Example of weighted SWOT analysis For Sports Direct International Plc, the strength for strong distribution can be given a higher weight than the strength for the skilled labor force. Lack of diversification makes it difficult for employees from different racial background to adjust at the workplace, leading to loss of talent. Weaknesses of Sports Direct Sports Direct has found itself mired in a number of controversies over the years. Interest rates are low, which provides an investment opportunity for large projects. The company has low levels of current assets compared to current liabilities, and this can create liquidity problems for it in operations. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. It lists the Strengths-Threats ST strategies that involve using strengths to fight of threats. This could be possible as costs are low currently. This is one of the major limitations of SWOT analysis. Website: Sports Direct International Plc has a well-functioning and interactive website that draws a large number of internet traffic and sales.
based on 120 review