QUESTION: Recall that in a SWOT analysis, the Strengths and Weaknesses are internal. This
means that the organization has more control over these factors. The opportunities and threats
are external, meaning that they have little to no influence over them. 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. Also, provide an overall evaluation of the organization
based on the SWOT analysis.
ANSWER:
SWOT is a strategizing analysis which every business management need to put into
consideration before embarking in rolling out plans/strategies for the business. Swot plays a
very vital role in analysing the factors that influences the outcome of a business as in the case
of the Athletes Warehouse. As the acronym stands for Strength, Weakness, Opportunities, and
Threats. We will be looking on how this characteristic shaped the business idea of Colin and
his brother Ed.
STRENGTH.
Firstly, Colin was a PhD holder in Physical Education, meaning he had a vast amount of
knowledge on sport shoes and clothing. His brother Ed was himself an active athlete which
also meant he knew a lot about sport shoes and clothing as well. This gave both of them a
massive advantage over other available competitors.
Secondly, have good stock and variety of quality athletic products: The bothers says that their
store will have a mix of athletic quality products. They also have at least half of their
estimated opening inventory
Finally, believing that their product standard and quality will set them apart plus the
capability to provide expert advice to customers with regards to purchasing of athletic shoes
and clothing was also a massive strength over their competitors.
WEAKNESS.
Firstly, even though Colin and Ed had plans to deal only on quality shoes and clothing, they
faced a major competition from already existing businesses who dealt on sport merchandise
and have been in existence long before them.
Secondly, while Colin who was 16 years younger than his brother Ed was full of enthusiasm,
confidence, and aggressive with the whole business plan and optimistic that it will be a
success, 46 years old Ed already had his sight set on his retirement plans and savings. Ed was
sceptical about the whole idea because his retirement money was being put at risk.
OPPORTUNITIES.
Firstly, Colin to an extent understood the need for quality sport shoes and clothing among
youths. The fact that none of the already existing businesses didn’t offer quality shoes and
clothing and expertise as well, have him a massive advantage over others.
Secondly, location was also a major factor for the Athlete Warehouse. Colin made good use
of his experience and the information from statistic Canada in choosing the suitable location
where their business will fend off competitors and as well reachable to his target
customers/market.
THREATS.
Firstly, no credit built with suppliers: Suppliers does not give credit to newer customer, they
need prepaid orders first to establish credit line with them
Secondly, there are already at least four stores around the town who offers similar products: A
and Competitors have more years of experience in the business: As for example B & B Sports
that have been in the market for about 15 years already and have a loyal customer already.