Running head: Athletes Warehouse SWOT Analysis 1

Athletes Warehouse SWOT Analysis

John Odhiambo

University of the People

BUS 1101 - Principles of Business Management

10/10/2023
Athletes Warehouse SWOT Analysis 2

Athletes Warehouse SWOT Analysis

Strengths

Colin Power's background as a Physical Education teacher and track athlete provides

Athlete's Warehouse with a strong foundation of knowledge in sports and athletic needs. This

expertise can help in providing valuable guidance to customers when selecting sports shoes and

clothing (Howse, 1992). In addition, Both Colin and Ed possessed immense local community

connection due to their involvement in sports and coaching. Colin's track club and Ed's hockey

background have allowed them to establish relationships with potential customers and schools in

the area. The company was further committed to offering high quality footwear and clothing that

set the company, Athlete’s Warehouse apart from its competitors. Their dedication to quality can

attract customers looking for durable and performance-oriented products.

Weaknesses

There was lack of cash on delivery agreement with some of the major suppliers such as e

NIKE that require cash-on-delivery (COD) for initial orders. Athlete's Warehouse's inability to

establish credit terms with such suppliers may limit their product selection and competitive

pricing. Also, the company heavily relied on part time staff on both stores to ensure maximum

operability. Depending on part-time staff introduces challenges related to consistency, training,

and the quality of customer service. Lastly, Colin and Ed have limited financial resources, with

only $12,000 of inventory and some renovation costs available. Their inability to secure

substantial initial funding may constrain their business expansion.

Opportunities

The positive economic trends in Grand Falls and Windsor, including low inflation and a

strong employer in Abitibi Price Paper, present an opportunity for Athlete's Warehouse to tap
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into a more affluent customer base with higher disposable income. Furthermore, Colin's research

indicates that there is an underserved market segment of people between the ages of 13 and 34

interested in sports and athletics. This provides an opportunity for Athlete's Warehouse to cater

to this specific demographic. Lastly, Grand Falls serves as the primary service center for a retail

trading area of at least 50,000 people. Athlete's Warehouse can attract customers not only from

Grand Falls but also from neighboring towns, expanding its customer base.

Threats

Competition from Existing Stores: Athlete's Warehouse faces competition from existing

sporting goods stores and clothing retailers. These competitors may already have established

customer bases and brand recognition (Howse, 1992). Economic Uncertainty: While the local

economy is currently stable, economic conditions can change. Any downturn could lead to

reduced consumer spending, affecting sales. Location Selection: Choosing the right location is

critical. If Athlete's Warehouse selects the wrong location, it may not attract the expected

customer traffic, resulting in lower sales and profitability.

Overall Evaluation

Athlete's Warehouse has strengths in expertise, community connections, and a

commitment to quality. These strengths provide a solid foundation for success. However, the

limited financial resources and reliance on part-time staff are internal weaknesses that need to be

addressed. External opportunities include a growing local economy, an untapped market

segment, and a substantial retail trading area. However, the store faces threats from existing

competition, economic uncertainty, and the critical decision of location.

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References

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

Teoli, D., Sanvictores, T., & An, J. (2019). SWOT analysis.