Strengths of Dick's Sporting Goods 2
Findings 3 Weaknesses of Dick's Sporting Goods 3-5 Conclusions/ Recommendations 5-6
Action Plan Timeline 7
Works Cited 8
EXECUTIVE SUMMARY Dick's Sporting Goods has been a solid growth story over the past decade, booking an average return of about 23%. Lately, though, the sports retailer has been showing some weaknesses between slipping same-store sales and inventory struggles. By using concepts from the book Built to Last and improving our marketing efforts, we believe we can improve our sales and profits dramatically. Our future plans include an action plan timeline which shows details about how to implement the presented strategies. By never being satisfied, our company can strive to be better today than we were yesterday. Even when we are the front-runner, we want to work as if we are in last place fighting to make it to the top. This report opens with Dick's Sporting Goods strengths and continues to talk about their weaknesses. The company already uses many strategies that are suggested in Built to Last. Dick's strengths include strong support services, stores-within-a-store, online and mobile, and private label brands. Although they do have much strength, Dick's also has many weaknesses which include supplier dependence, same-store sales, and lack of agility. By putting into practice these concepts from Built to Last, we will reach the status we have been striving for.
Dick's Sporting Goods is among the most profitable sporting goods retailers. It is important to realize that consumers do have many other choices. Dick's will most likely not try to get into a price war to compete, but instead differentiate itself through its product selection and wonderful customer service. Although Dick's is one of the most successful sporting goods retailers, they also face some problems in the future if slight changes are not made. By implementing strategies from Built to Last, Dick's will be able to overcome all of the negative issues that they have been faced with recently and can become a visionary company.
The primary factors that historically influenced the company's profitability and success have been the growth in its number of stores and selling square footage, positive same store sales and its strong gross profit margins. In the last five years, the company has grown from 355 Dick's stores at the end of fiscal 2007 to 518 Dick's stores at the end of fiscal 2012. Dick's Sporting Goods continues to expand its presence through the opening of new stores and believes it has the potential to reach approximately 1,100 Dick's locations across the United States. By doing so, we will be able to become the visionary company we originally set out to be.
Dick's Sporting Goods has held a leading market position for a long time now. Some of their strengths include strong support services, stores-within-a-store, online and mobile, and private label brands. Dick's has a major competitive advantage because of its mini-shops. Dick's provides top-notch service and advice to its customers. It is the largest employer of PGA and LPGA pros in the industry. This strategy has attracted interest from Nike, Under Armour, Adidas, and North Face; this has allowed for higher margins. Making investments in Dick's digital business has paid off nicely. E-commerce revenues went from $103 million to $300 million from 2009 to 2012. This can easily triple the business by 2015. Mobile will be a key growth driver for the company. A new mobile site and app will allow for shopping and loyalty rewards, which will be very beneficial to both the company and customers. In regards to private label brands, Dick's has been aggressive in buying companies and brands like Top-Flite, Field & Stream and Max