Dick's Sporting Goods Executive Summary
locations and introducing a dedicated Field &Stream store. (IBISWorld Annual Report 2/2/2013, 10-k)
Competitive Pricing. This strategy was used in 2009. Dick’s Sporting Goods company position itself to be competitive in price while it doesn’t attempt to the price leader in the market. For example, they will lower their price on a specific item if customers found a lower price one from competitors. They aim at offering value to their customers and developing and maintaining a reputation as a provider of value at each signal item. (NYSE-DKS-2009)
Expertise and Service. They supply value added service and provide knowledge and trained customer service. For example, they employed 502 PGA (Professional Golfers’ Association of America) and LPGA (Ladies …show more content…
Over the five years of 2016, more and more individuals purchased industry products for sporting activities and the sports participation rate is expected to grow 1%. Among which, alternative exercise contributed a lot especially, such as tai chi, yoga and so on, and improved the demand of related sporting products. According to the report, because of the bolstered by more health-conscious individuals required sporting goods for their daily fitness or activity regimen, the annual revenue grew over 1.4% in the past five years. However, because of the external competition and the increasing investments in products line offerings, the sporting goods industry whole revenue dropped from 3.4% to 3.2% in 5 years. The sporting goods industry was made up by 20,000 stores. The industry has many competitors. Dick’s sporting goods direct compete with Big 5 sporting goods, Hibbett Sport and Cabela’s. Walmart, Target, and Sears also supply sports goods, moreover, mass merchandisers, online retailers, and department stores also share huge market. Firms then are forced to have price war in order to fight for market share. Meanwhile, in order to gain more revenue, many firms engaged in mergers and acquisitions. In the past five years, more and more operators entered the market, which are small, independent …show more content…
It is saturated with large competitors, the 50 largest companies account for 55% of the sporting goods industry revenue the demand for sporting goods is limited to replacement demands (39 Astonishing Sporting Goods Industry Trends). It is expected that the average annual rate will grow to 2.0% in the next 10years, which is in line with overall economy (IBIS World). As the above mentioned the industry become more consolidated because more merger and acquisition activities appeared in the market, which indicates that the industry is in mature life cycle phase. The industry still attracted those consumers who are aged 65 and over, also these health-conscious consumers will increasingly purchase sporting goods to maintain healthy lifestyles (IBIS World). The rising competition for market share enforced the companies to decrease their prices and results the price war, such as department stores expanded their product ranges, decreased their price and offered promotional deals more frequently (IBIS World). Companies should focus on building brand loyalty and minimizing their cost structure and they can build brand loyalty by skilled at outstanding merchandising and market abilities (Hoover’s Inc. , 2014).
Industry Analysis
- Related Industries Because of the different selling form, Sporting goods industry related with E-Commerce & Online Auctions, recreational vehicle dealers, and mail order. Relative
Competitive Pricing. This strategy was used in 2009. Dick’s Sporting Goods company position itself to be competitive in price while it doesn’t attempt to the price leader in the market. For example, they will lower their price on a specific item if customers found a lower price one from competitors. They aim at offering value to their customers and developing and maintaining a reputation as a provider of value at each signal item. (NYSE-DKS-2009)
Expertise and Service. They supply value added service and provide knowledge and trained customer service. For example, they employed 502 PGA (Professional Golfers’ Association of America) and LPGA (Ladies …show more content…
Over the five years of 2016, more and more individuals purchased industry products for sporting activities and the sports participation rate is expected to grow 1%. Among which, alternative exercise contributed a lot especially, such as tai chi, yoga and so on, and improved the demand of related sporting products. According to the report, because of the bolstered by more health-conscious individuals required sporting goods for their daily fitness or activity regimen, the annual revenue grew over 1.4% in the past five years. However, because of the external competition and the increasing investments in products line offerings, the sporting goods industry whole revenue dropped from 3.4% to 3.2% in 5 years. The sporting goods industry was made up by 20,000 stores. The industry has many competitors. Dick’s sporting goods direct compete with Big 5 sporting goods, Hibbett Sport and Cabela’s. Walmart, Target, and Sears also supply sports goods, moreover, mass merchandisers, online retailers, and department stores also share huge market. Firms then are forced to have price war in order to fight for market share. Meanwhile, in order to gain more revenue, many firms engaged in mergers and acquisitions. In the past five years, more and more operators entered the market, which are small, independent …show more content…
It is saturated with large competitors, the 50 largest companies account for 55% of the sporting goods industry revenue the demand for sporting goods is limited to replacement demands (39 Astonishing Sporting Goods Industry Trends). It is expected that the average annual rate will grow to 2.0% in the next 10years, which is in line with overall economy (IBIS World). As the above mentioned the industry become more consolidated because more merger and acquisition activities appeared in the market, which indicates that the industry is in mature life cycle phase. The industry still attracted those consumers who are aged 65 and over, also these health-conscious consumers will increasingly purchase sporting goods to maintain healthy lifestyles (IBIS World). The rising competition for market share enforced the companies to decrease their prices and results the price war, such as department stores expanded their product ranges, decreased their price and offered promotional deals more frequently (IBIS World). Companies should focus on building brand loyalty and minimizing their cost structure and they can build brand loyalty by skilled at outstanding merchandising and market abilities (Hoover’s Inc. , 2014).
Industry Analysis
- Related Industries Because of the different selling form, Sporting goods industry related with E-Commerce & Online Auctions, recreational vehicle dealers, and mail order. Relative