Sporting Goods Industry

4872 words 20 pages
Show More
Sporting Goods Retail

Executive Summary The sporting goods retailers range from national large-format stores in which customers can buy just about any equipment and apparel they need for any sporting events and seasons, to local specialty stores that only resell used sporting equipment or specialize in selling equipment and apparel for one specific sport. Because the industry is so fragmented, we define our industry as the national big-format sporting goods retailer industry, which includes stores that only sell, not buy and resell a wide range of sporting equipment and apparel for most sports and for all season. This definition excludes discount stores, such as Wal-Mart and Target, or department stores, such as Macy’s and …show more content…

According to DataMonitor’s “Sport Equipments in the United States,” there exists a growing trend of big name manufacturers, such as Nike and North Face, cutting out “middle-man” retailers by selling their manufactured products directly to the end consumers through their own retail outlets. Not only do these suppliers and manufacturers are able to distribute goods through their brand retail outlets, but today’s technological advancements allow them to take advantages of the internet by selling directly to end-consumers through their own internet websites. A consumer can conveniently go to Nike.com or K2.com to do a quick research of what the person is looking to buy. With a click of a button, the person can charge the product on his/her credit card, and the product is delivered to that consumer in a few days. This trend of suppliers and manufacturers becoming direct competitors of sports retailers shrinks the market share of each individual firm in the sporting goods retail industry by adding more players into the playing field. The end result is the decrease in firm’s profitability caused by the shrinking market share.
Competition
A report done by John Cronin for the Tiger Valuation Services indicates that there is a growing trend of retailers shifting their focuses more towards the superstore-type structure (Dick’s

Related

  • External and Internal Environments
    2921 words | 12 pages

    Introduction: In researching an industry for this assignment I chose the sporting goods industry that is a major industry with over $3 billion in sales per year. Within that industry I chose a company that I am familiar with “The Adidas Group.” The Adidas group is a publically traded company in Europe and with globalization it has increased its shares in the market. Adidas being traded on the European market is what we call an overnight stock. These stocks are traded at night here in the United….

    Show More
  • How Successful Is Singapore in the Sporting Industry
    3460 words | 14 pages

    century, the government has focused most of the nation’s policies to boost its economy and establish the country’s reputation in the global market. There were sparse efforts to refine plans and raise its sports profile. The report from the Committee of Sporting Singapore (CoSS) in 2001 stated that sports in Singapore….

    Show More
  • The Importance of Event Planning
    1391 words | 6 pages

    mega sporting event has the ability to provide large numbers of jobs, not only those directly associated with the organization9 of the event itself, but also those in the tourism and retail industry resulted from increasing quantities of tourists/spectators. In addition, in the construction industry, especially the period when staging of the event, major infrastructural development is required, such as the case of the Olympic Games. Atlanta, the host city of the 1996 Olympic Games is a good example….

    Show More
  • MOUNTAIN EQUIPMENT CO-OP: THE PRIVATE-LABEL STRATEGY
    2329 words | 10 pages

    Co-op (MEC) must address:    How to provide their customers with a unique and desirable product line that no other store can match so that they can own a distinct competitive advantage and do not have to directly compete with other sporting goods retailers. How to promote the benefits of the company’s co-op structure and its emphasis on creating positive changes in Canada so that they do not lose the advantage of having the customer perception that they are a….

    Show More
  • Nike Inc.: China
    5610 words | 23 pages

    TABLE OF CONTENTS Executive Summary ...………………………………………………………3 Section 1 | Introduction ...………………………………………………………………4 Section 2 | Differences in Nation Culture: the US and China ...……………………...5 Section 2.1 | Cultural Differences and Similarities ...…………………………….5 Section 3 | Competitors ...……………………………………………………………….9 Section 3.1 | Adidas ...……………………………………………........................9 Section 3.2 | Li Ning ...………………………………………………………….10 Section 3.3 | Current Positon….

    Show More
  • Harrod's Sporting Goods
    998 words | 4 pages

    When comparing Harrod’s to the selected industry ratios for 2006 their (Harrod’s) numbers look pretty good. Profit margin for the industry averages around 4.51%, Harrod’s stands at 6.2% showing good cost control. Return on assets for the industry averages around 5.10% for part A and 1.33x for part B, Harrod’s stands at 8.9% for part A and 1.43x for part B showing efficient use of assets. Return on equity for the industry averages around 9.80% for part A and 0.48 for part B, Harrod’s….

    Show More
  • New Balance Case study
    2404 words | 10 pages

    has staunch traditional values and customer satisfaction as its primary priority. Question 1: What are New Balance’s strengths, weaknesses, threats and opportunities? SWOT ANALYSIS STRENGTHS Good Management structure e.g. Van Rooyen the general manager Wide range of products across every sporting category Functional technological design in terms of fit. Foot widths have been incorporated in the design of the shoe. This distinguishes/ differentiates New Balance product from its competitors….

    Show More
  • Billabong Analysis
    2155 words | 9 pages

    Chapter 3: Identification and evaluation of the external environment 8 – 11 3.1 Porters Five Forces 8 – 9 3.2.1 The competition 8 3.2.2 New Entrants 8 3.2.3 Suppliers Power 8 3.2.4 Consumer Power 9 3.2.5 Product Substitutes 9 3.2 Industry Analysis 9 3.3 PESTEL Analysis 10 –….

    Show More
  • Bwin Media Plan
    5160 words | 21 pages

    Media Plan For Bwin BAAMC Media Planning Level I Alex Harman i7952058 Word Count 4,495 Table of Contents Background/Context 3-4 Share of Market 3 Share of Voice 4 Analysis 4-11 Sponsorship 5-6 Press 6-8 TV 8-10 Media Objectives 11-13 Media Plan 13-16 Execution 16-31 Media Flow Chart 16 Propose Budget 17 TV CPT, GRPs, CPP & Rates 17-22 Magazine CPT, GRPs & Rates 23-26 Press CPT, GRPs, Impacts & Rates 27-30 Duplicated Reach 30 Total Budget 31….

    Show More
  • Social Media and Sports Alex
    1927 words | 8 pages

    Alex Young Mr. Chester English 12 CP Rough Draft 3/27/12 How has Social Networking affected the sporting industry? From all the premier sports athletes like LeBron James, Aaron Rodgers, Andy Roddick, Michael Phelps to all of the big-time sports anchors and newscasts like Chris Berman or Dick Vitale. Social Media has changed the dynamics of how people watch and follow sports on a daily basis. Social networking tools like Twitter and Facebook are two big networks that allow people to stay….

    Show More

Popular Essays