Swot Analysis of Dick's Sporting Goods

SWOT Analysis of Dick’s Sporting Goods

Strengths:

 Market Share Leadership

Dick’s Sporting Goods and its position as market share leader in the sporting goods industry, gives the company a slew of benefits and advantages over its competitors. One such advantage is Dick’s Sporting Goods ability to achieve economies of scale via its extensive reach across the continental United States and ability to maintain higher volume for its suppliers, creating a cost advantage. Furthermore, Dick’s Sporting Goods position as the market leader, while still expanding, provides the company with the ability to further hemorrhage its competitor’s market share in previously untapped markets. Likewise, Dick’s Sporting Goods is an attractive company for current and future suppliers to expand with, due to its size and position in the sporting goods industry.

 Cost Advantages

As the market share leader in the sporting goods industry, cost advantages hold significant weight with Dick’s Sporting Goods. The company is able to secure the best prices from nearly all of its suppliers. Such examples include Dick’s Sporting Goods’ relationship with major suppliers, Nike and Under Armour. Nike and Under Armour are among the two most popular brands in the sporting goods industry; with a customer base ranging from youth sports players to professional athletes, in nearly every sport, worldwide. Dick’s Sporting Goods extracts some of the best deals from these stalwarts of the sporting goods industry, allowing the company to maintain higher margins than its competitors.

 Pricing

In line with Dick’s Sporting Goods ability to maintain higher margins due to its position as market share leader, and the cost advantages that come with such a distinction; Dick’s Sporting Goods has placed a unique focus on catering to the serious athlete and enthusiast. This focus differs from that off its competitors, in that it promotes higher quality products, with higher prices, and higher margins leading...