SWOT Analysis Athlete’s Warehouse 1

SWOT Analysis of Athlete’s Warehouse

Michael E Ohl

University of the PeopleSender

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Abstract

This paper will look at and analyze the strengths, weaknesses, opportunities, and threats that are

a part of forming Athlete’s Warehouse. This will include the competition, the strengths such as

product knowledge, as well as the pitfalls of the past and failures. While Colin will have ample

time to devote to the company Ed will only be helping minimally. The brothers already have

partial stock that they need while the rest of the stock and operating expenses would come from

loans and Colin’s retirement. Both brothers have experience with athletics in one form or another.

Colin and Ed Power have many decisions ahead and this paper will help to highlight the things to

consider about opening a new athletic supply company.

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SWOT Analysis on Athlete’s Warehouse

The strengths of the brothers and their idea start in the form of both of them having

experience in the athletic industry. Ed was a professional hockey player and an accomplished

runner while Colin was a teacher, school coach, director of a local YMCA and owner of a gym.

Using these examples it shows that both of them have experience in the industry and know the

type of products that their future customers may want. Colin being available to manage the store

full time would also be a major benefit to the brothers in this venture. Having one person

dedicated to managing the store will ensure that the vision of the company is upheld, especially

when the brother who seems most earnest is the one in that position. The brother’s also already

have more than half their estimated opening inventory. This means they have to buy less to start

giving them a jump start on sales and saving on initial startup costs.

The brothers have their own share of weaknesses as well. Looking at this Ed will be

looking to retire within the next several years. This means that there may be a deadline on how

long he is willing to work on the store. Furthermore he already has a full-time job and a training

schedule for athletic races. This leaves one of the owners with very limited time to invest in the

company which may cause it to suffer if his attention is needed more. Ed and Colin have also

both ran a former athletic store together before that failed. It does not appear an adequate

analysis of why this failure happened has been done and this could cause past mistakes to be

repeated again. The brothers also do not have credit established with several of the vendors they

wish to sell products for. This leaves them having to start a new relationship with cash up front.

The opportunities that the brothers have are there as well. The economy of the town they

plan to open in is stable meaning that customers will be willing to spend money on non-essential
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goods more than if the economy was in decline. They will also benefit from 50,000 potential

customers as they will be located in a shopping center for a larger regional location. Having more

customers than just a single town gives a greater chance for the product to spread. Inflation is

down in the area as well which should help encourage customers to spend. When inflation is low

the value of a dollar is stronger and more goods and services are generally purchased.

The company does face many threats though. There are already three other sporting

goods stores in the area as well as a major chain department store that is able to offer lower

prices. This will mean they have to work hard to differentiate themselves from the competition to

get a foothold in the market. The brothers locating themselves in the mall would provide a

challenge as a good portion of their competition is already embedded here. They currently have

rough number estimates to go on, but little solid data.