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Athlete Warehouse SWOT Strategy

Department of Business Administration, The University Of The People.

BUS 1101 – Principles Of Business Management: Written Assignment Unit 5

Edward Dillenschneider (Instructor)

July 19, 2023

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SWOT is a crucial strategic analysis method that businesses prioritize before

implementing their plans. Athlete's Warehouse utilized SWOT analysis to leverage strengths,

seize opportunities, and address weaknesses and threats.

Let's explore how SWOT analysis transformed Colin and Ed's business idea into a

successful venture.

Strength

Colin's academic background includes a Ph.D. in Physical Education, which has

provided him with extensive expertise in sports shoes and clothing. Similarly, Ed's

experience as an active athlete has equipped him with the necessary knowledge and skills.

Their combined knowledge gave them a competitive advantage over others in their venture

(Howse, 1992).

In the fall of 1982, organizing a local track dub and encouraging school youth to

participate helped the two individuals create a market for their product, showcasing a clever

marketing strategy. Similarly, in Uganda, Coca-Cola adopts a similar approach by organizing

the annual secondary cup to promote its products (Howse, 1992).

Colin's customer-centric approach, targeting ages 14 to 35, along with their emphasis

on product standards and quality, set them apart from competitors. Additionally, their ability

to offer expert advice to customers on athletic shoes and clothing strengthened their position

in the market (Howse, 1992).

With Colin's full-time commitment to the business, he has a greater opportunity to

dedicate all his efforts to achieving the business goals, thereby increasing the chances of

significant growth.

Weakness
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The competition from existing sports merchandise businesses posed a significant

entry barrier for Colin and Ed's venture, especially considering their focus on selling high-

quality shoes and clothing.

Ed's reluctance to invest his retirement savings into the business was a weakness that

hindered their venture.

The significant 16-year age gap between Colin and Ed reflected their differing

attitudes towards the business. Colin's youth and passion made him more aggressive and

willing to take risks for the vision of a thriving business. On the other hand, Ed's older age

and focus on saving for retirement made him more doubtful about the success of their

business idea, ultimately weakening their journey (Howse, 1992).

The two also faced a lack of funds to start and run the business. Funding is the

essential fuel to get a business up and running.

Opportunities

Identifying the gap in the market where existing businesses lacked quality shoes,

clothing, and expertise, gave them a significant advantage. They channeled their business

idea to supply high-quality products, capitalizing on this opportunity.

Colin's connections from his teaching experiences in various areas provided them

with a larger market advantage over their competitors.

One strategic opportunity for Athlete's Warehouse was its prime location in the center

of a trading hub, attracting over 50,000 people from nearby cities. This provided them with

significant market potential for their products (Howse, 1992).

Threat

The business required full-time employees, but with only 80 hours a week offered by

the two owners, it was at risk of being outcompeted and underperforming (Howse, 1992).
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The expenses for advertising, telephone bills, insurance, office, and bookkeeping

became unmanageable and posed a threat to their business continuity.

Existing competitors sold lower quality shoes and clothes and offered a lower price

for the same clothes and shoes that Colins and Ed have suggested to start supplying.

Despite the considerable advantage of offering high-quality products and their

expertise, the two brothers were aware of the threats their sporting goods stores in Windsor

and Grandfall faced from competitors (Howse, 1992).

Their competitors have more years of experience in the business and understanding of

market demand than them: E.g., B & B Sports have been in the market for about 15 years and

have customers who are loyal to them (Howse,1992).

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Reference:

Howse, B. (1992). Athlete's warehouse (A). Atlantic Entrepreneurial Institute.