Department of Business Administration

Professor Natalie Zartarian

March 3, 2024
 Read the case study, Athlete's warehouse (A), and provide three strengths, weaknesses,
opportunities, and threats (each) for Athlete’s Warehouse. Provide an analysis of each of these,
including the justification for why you chose them.

Strengths:
1: Athlete's Warehouse specializes in quality athletic footwear and clothing, providing a unique selling
proposition in the market. This focus allows them to cater to the specific needs of athletes, distinguishing
them from general sporting goods stores.
2: Colin and Ed's capability in athletics and marketing, combined with their commitment to providing
expert advice, ensures a high level of customer service. This knowledgeable staff enhances the shopping
experience, building trust and loyalty among customers.
3: Colin's prior experience in supplying sporting goods to schools and his existing credit rating with some
suppliers provide Athlete's Warehouse with a competitive advantage. Strong supplier relationships ensure
access to quality inventory and good terms.

Weaknesses:
1: Ed's unwillingness to risk his retirement savings poses a financial constraint on the business.
Dependency on one partner's financial contribution could limit investment opportunities and hinder
growth potential.
2: The potential locations for Athlete's Warehouse, whether downtown or in the mall, offer limited square
footage. This constraint may limit the range of inventory they can carry and impact the overall shopping
experience for customers.
3: Previous ventures experienced cash flow issues, indicating potential challenges in managing
operational expenses and maintaining adequate liquidity. Without sufficient cash reserves, the business
may struggle to cover expenses during lean periods.

Opportunities:
1: The positive economic outlook in Grand Falls, coupled with a growing population of active individuals
aged 13 to 34, presents an opportunity for Athlete's Warehouse to capture a larger market share. Meeting
the demand for quality athletic gear can drive sales growth.
2: Leveraging e-commerce platforms to complement their brick-and-mortar presence can expand
Athlete's Warehouse's reach beyond the local market. An online store allows them to tap into a wider
customer base and increase revenue streams.
3: Building partnerships with local sports teams, schools, and fitness clubs can enhance brand visibility
and foster a sense of community support. Sponsorship deals, events, and outreach programs can attract
new customers and strengthen customer loyalty.

Threats:
1: Competing against established sporting goods stores and general retailers offering similar products
poses a threat to Athlete's Warehouse. Rival stores may have larger marketing budgets and existing
customer bases, making it challenging to differentiate.
2: Economic downturns or fluctuations in consumer spending could negatively impact discretionary
purchases like athletic footwear and clothing. A recessionary environment may lead to decreased sales
and financial strain on the business.
3: Shifts in consumer preferences towards online shopping, fast fashion, or alternative leisure activities
could threaten the relevance of brick-and-mortar retail stores like Athlete's Warehouse. Adapting to
evolving consumer trends is essential to remain competitive in the market.

Analysis:
The strengths of specialized product offerings and knowledgeable staff align with Athlete's Warehouse's
value proposition, setting them apart from players and enhancing customer satisfaction.
Weaknesses such as financial dependency and limited physical space highlight areas where strategic
planning and mitigation strategies are needed to address potential risks.
Opportunities like market growth and online retail growth offer opportunities for business growth and
revenue diversification.
Threats such as intense competition and economic instability underscore the need for resilience and
adaptability in navigating external challenges.
Overall, by capitalizing on strengths, addressing weaknesses, seizing opportunities, and mitigating
threats, Athlete's Warehouse can position itself for success in the competitive retail landscape.

Based on the SWOT analysis conducted for Athlete's Warehouse, here is an overall evaluation of
the organization:

Strengths:
Athlete's Warehouse has a specialized product offering, focusing on quality athletic footwear and
clothing, which distinguishes it from general sporting goods stores.
The company of knowledgeable staff, including Colin and Ed, ensures a high level of customer service
and expertise in assisting customers with their purchases.
Established supplier relationships provide access to quality inventory and favorable terms, enhancing the
store's competitive advantage in sourcing products.

Weaknesses:
The business is financially dependent on Ed's reluctance to risk his retirement savings, which may limit
investment opportunities and hinder growth potential.
Limited physical space in potential locations may constrain the range of inventory and impact the overall
shopping experience for customers.
Previous cash flow challenges suggest potential difficulties in managing operational expenses and
maintaining adequate liquidity, posing a risk to the financial health of the business.

Opportunities:
Growing market demand in Grand Falls, coupled with a population of active individuals aged 13 to 34,
presents an opportunity for Athlete's Warehouse to capture a larger market share and drive sales growth.
Expansion into online retail can complement the brick-and-mortar presence, allowing the business to tap
into a wider customer base and increase revenue streams.
Community engagement initiatives such as partnerships with local sports teams and schools can enhance
brand visibility and foster customer loyalty, contributing to long-term success.

Threats:
Intense competition from established sporting goods stores and general retailers offering similar products
poses a threat to Athlete's Warehouse's market position and differentiation.
Economic instability or downturns in consumer spending could negatively impact discretionary purchases
like athletic footwear and clothing, affecting sales and financial performance.
Changing consumer preferences towards online shopping or alternative leisure activities may challenge
the relevance of brick-and-mortar retail stores, requiring adaptation to evolving market trends.

Overall, Athlete's Warehouse has a strong foundation with its specialized product offering,
knowledgeable staff, and established supplier relationships. However, addressing weaknesses such as
financial dependency and space limitations while capitalizing on opportunities like market growth and
online expansion will be crucial for long-term success. Mitigating threats through strategic planning and
adaptation to changing market dynamics will further strengthen the organization's position in the
competitive retail landscape.
Reference
Howse, B. (1992). Athlete's warehouse (A). Atlantic Entrepreneurial Institute