The business must first look internally at its own strength. Its primary strength is being a major authorized Nike dealer. Nike; is a brand product and known worldwide by their “swoosh” logo and quality product, it takes little effort to promote the product. Nor does it require a large expense to advertise Nike, as product reputation does that function. An additional strength is Sue herself, being a nationally ranked runner herself, validates her endorsement of the companies product line. . In past ten years she has built a loyal customer base primarily of serious runners, and continues to net a reasonable profit and has sufficient operating capital to make some modifications where considered necessary. Finally, Sue has the foresight of being a successful woman to plan for her company’s future.
Weaknesses
- Single branded product
- Reduction of target market
- Consumer changes
- Training
As consumers tastes have changed, Sue knows the time is right to minimize her business weakness as much as possible. Because she is devoted to running and feels that she has something special to offer she hope that the weakness can be offset by her strengths and comprehension of running. One weakness is the single product line; while on one hand it is a strength, a single product line is also is balanced as a weakness. The best way for Sue to overcome this weakness is to diversify and broaden her overall product selection, without losing her current customer base. She must consider the next weakness that there could be a loss of her current target market while she reclaims her niche. Another weakness stems from the changing of the customers her business built during jogging years, needs to find more products that cater to the taste and lifestyles that consumer’s interest have shifted to. The last weakness is lack of training of sales staff., When changes are made more emphasis should be place on the approach to consumer sale know what is in fashion at the time in addition to the true functionally of the product.
Opportunities
- Increase product line
- Product diversification
- Change target market
Sue’s external opportunities and threats in this analysis are clearly defined. She must recognize the need to utilize her strengths with the opportunities to continue with focus and competitive advantage. Her first opportunity is to increase her product line to interest more consumers. Nike swoosh still has the power and has recently pushed into sports equipment, along with sports apparel and shoes Sue can increase her product line as well with the expanded product of Nike. A second opportunity is to increase her product diversification, continuing to sell Nike products is important, but there is and opportunity to increase and change the target market with additional brand names in the her stores.
Threats
- Consumer lifestyle changes
- Competition
- Bad press association with Nike
Some of the threats are the same that can affect any business today. First the change in consumer lifestyle habits; yesterday’s runner, has found that running was to hard on the body and has replaced running with other less damaging forms of exercise. The opportunity to increase the product line to other aspect of sports related functions can reduce the threat and help stay with the flow of consumer lifestyle changes. Competition is an ever present danger that faces most businesses today, high volume, low quality items and lower prices bring competition to a businesses doorstep. Sue must work with her vendors to promote and sale her sports products. Nike has been a strong player for Sue all along, she must distance herself from the bad boy Nike image, and still utilize the power of Nike and expand her product line.
Analysis
Base on the above analysis Sue’s business must focus their attention to increasing the stores product line and using her resources to provide products and services to retain her current customer base and look toward the future to new repeat customers.
Conclusion
This paper has provided a SWOT analysis for Runners World. This SWOT analysis has revealed the strengths, weakness, opportunities and threats Sue must consider to remain competitive in the shoes, sports apparel and sports equipment market. Strengths and opportunities were discussed to help build upon early success of Sue’s business. The threats can also be turned into opportunities to minimize weaknesses.
References
Perreault, W. D. & McCarthy, E. J. (1999) BASIC MARKETING: A GLOBAL- MANAGERIAL APPROACH. Boston: Irwin/McGraw Hill
