Analysis: What Went Wrong With Forzani's Group
What Went Wrong With Forzani’s Group
Managing a company is not the easiest thing to do. That being said, there are many factors in helping your company grow. Over the years a company will ‘evolve’ so to say, and will not be the same as it was 10, 20 maybe 50 years ago. Lately, Forzani Group Ltd. Has not has been doing as well as it was in the past. ‘Not so long ago, this Calgary-based company was considered an unrivalled league leader, with more than 390 stores nationwide, and a history of explosive growth in Canada 's $6.7-billion sporting goods market.’This article states that there has been some changes that has occurred which lead the company, Forzani Group Ltd. into its downfall. To the untrained …show more content…
There are many things that effect your sources of income and without money your business will quickly fall to nothing. For the Forzani Sports Group ltd. one of the major issues they faced had to do with their lack of diversity in the products they carried and keeping up with ever-changing trends. With the companies best year in business being 2003 having a net-worth of 6.75 billion Canadian dollars, sales were good and expectations were high, but during that year a trend changed drastically, starting a series of downhill events from there. (Forzani executives were caught off guard when that trend began to emerge in 2003) The executives within Forzani Group ltd. failed to spot this shift in trends and ultimately lost out on a chance to expand and diversify their company. If more planning was put into the quickly changing trends this could have been avoided. This isn’t the only issue with diversity that Forzani faces. Forzani stores carry too much product that differs from each other, thus creating too many competitors. (While struggling with product mix, Forzani has also been facing stiff competition on several fronts.) If Forzani was to focus more of their attention towards just one department and expand on that, they might find more success due to the decrease in competition. With such a vast selection of items and a large amount of competition for every one of those items, Forzani was forced to lower their prices dramatically and take a pause in the ambitions of doubling their profit in 5 years. This resulted in the company going through with some pretty questionable marketing tactics such as, increasing the original prices on product so that sale prices looked much better than usual. (The result is that Forzani has been forced to compete on price, which has damaged its earnings - and its reputation.). All of these issues
Managing a company is not the easiest thing to do. That being said, there are many factors in helping your company grow. Over the years a company will ‘evolve’ so to say, and will not be the same as it was 10, 20 maybe 50 years ago. Lately, Forzani Group Ltd. Has not has been doing as well as it was in the past. ‘Not so long ago, this Calgary-based company was considered an unrivalled league leader, with more than 390 stores nationwide, and a history of explosive growth in Canada 's $6.7-billion sporting goods market.’This article states that there has been some changes that has occurred which lead the company, Forzani Group Ltd. into its downfall. To the untrained …show more content…
There are many things that effect your sources of income and without money your business will quickly fall to nothing. For the Forzani Sports Group ltd. one of the major issues they faced had to do with their lack of diversity in the products they carried and keeping up with ever-changing trends. With the companies best year in business being 2003 having a net-worth of 6.75 billion Canadian dollars, sales were good and expectations were high, but during that year a trend changed drastically, starting a series of downhill events from there. (Forzani executives were caught off guard when that trend began to emerge in 2003) The executives within Forzani Group ltd. failed to spot this shift in trends and ultimately lost out on a chance to expand and diversify their company. If more planning was put into the quickly changing trends this could have been avoided. This isn’t the only issue with diversity that Forzani faces. Forzani stores carry too much product that differs from each other, thus creating too many competitors. (While struggling with product mix, Forzani has also been facing stiff competition on several fronts.) If Forzani was to focus more of their attention towards just one department and expand on that, they might find more success due to the decrease in competition. With such a vast selection of items and a large amount of competition for every one of those items, Forzani was forced to lower their prices dramatically and take a pause in the ambitions of doubling their profit in 5 years. This resulted in the company going through with some pretty questionable marketing tactics such as, increasing the original prices on product so that sale prices looked much better than usual. (The result is that Forzani has been forced to compete on price, which has damaged its earnings - and its reputation.). All of these issues